SMALL companies are being urged to take advantage of a Government initiative called "micro entity", as it will entitle them to disclose less information in their accounts submitted to Companies House and HMRC.

Christine Perks, an associate at Kendall Wadley, which has offices in Worcester, Malvern and Hereford, said: "This is optional for companies. The accounts still need to be prepared in the same way but the information disclosed on Companies House and with the Inland Revenue is reduced."

A company may qualify as a micro entity if it meets at least two of three conditions: its turnover is not more than £632,000, its balance sheet total is not more than £316,000 and the average number of employees does not exceed 10.