Enter the principal activity

Under Statutory Instrument 2013 1970 the requirement for companies to show principal activities in the directors report is removed from the Companies Act 2006 (pt 3 section 6 (2) (1)). This is then replaced by the requirement for medium and large companies to provide a strategic report. This means there is no requirement for small companies to provide the principal activity information in a set of accounts.

However, the requirement to show principal activities in the directors report still exists under the FRSSE 2015 (section 18.1 (A)) and as such contradicts what is in the Companies Act.

Based on technical advice taken, and our interpretation of the legislation, as this section of the FRSSE is intended to follow the Companies Act requirements it is therefore appropriate to revert to the Companies Act in this instance and remove the principal activity paragraph.

Sage Final Accounts supports sole traders, partnerships, and small limited companies.

If you would still like to include a principal activity paragraph, you can.

Include principal activity paragraph with heading

As there is no dedicated principal activity block, you’ll be re-purposing an existing block to be a principal activity block.

  1. Accounts Preview > from the table of contents click Directors Report.

  2. Click either the Add employment of disabled persons block, or the Add qualifying indemnity provision block.

    Choose a block which you don’t intend to use for anything else.

  3. Both of these blocks can have different titles. Change the title to Principal activity (or whatever is appropriate).

  4. Click in the main edit box and enter your principal activity text > Save.

    It’s not possible to change the position of these blocks. They will appear in the current position. If this is not acceptable, consider including a principal activity paragraph without a heading. Instructions for this are below.

Include principal activity paragraph without heading

You’ll make changes to the introductory paragraph in this procedure.

  1. Accounts Preview > Directors Report.
  2. Find the introductory paragraph (this will be the first paragraph block under the Directors Report heading > Edit.
  3. Add your principal activity paragraph to this block. > Save.

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