Finance Leasing Manual - FLM48.06

Accounting Standards: unincorporated businesses

The Companies Act requirements do not apply to unincorporated businesses or to companies incorporated abroad. They certainly apply to small etc companies - even those exempted from the audit requirements of the Companies Acts. However, correct accounting practice as evidenced in accounting standards is still heavily influential with the courts for tax purposes even in small cases. You can see this in Threlfall v Jones and Gallagher v Jones, 66 TC 77, mentioned at FLM21.21 onwards, where the taxpayers were individuals.