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Small Firms Impact Test


The Small Firms Impact Test (SFIT) becomes a mandatory part of the Impact Assessment (IA) process when your proposal imposes or reduces costs on business. It has two main stages: Stage 1 – Starting the SFIT Stage 2 – Identifying and exploring more fully the potential to minimise the impact of the requirements on small firms e.g. exemptions, simplified inspection, less frequent reporting etc. for businesses with fewer than 20 employees.

The Small Firms Impact Test (SFIT) becomes a mandatory part of the Impact Assessment (IA) process, when your proposal imposes or reduces costs on business. It has two main stages:

  • Stage 1 - starting the SFIT; and 
  • Stage 2 - identifying and exploring more fully the potential to minimise the impact of the requirements on small firms e.g. exemptions, simplified inspection, less frequent reporting etc. for businesses with fewer than 20 employees.

Full guidance on this test, available at Small Firms Impact Test. This test can also help officials complete the cost benefit analysis part of the IA template. You should contact BIS’s Enterprise Directorate at the earliest stages of policy development if your proposal is likely to have a significant impact on small businesses on 020 7215 6032 or e-mail regulation@bis.gsi.gov.uk. The Enterprise Directorate can offer you assistance and advice on completing this test.