UK company size ‘thresholds’ to increase
The government has announced measures to “cut complexity and reduce the reporting burden on companies” which it estimates will result in around 113,000 companies and LLPs moving from the small to micro-entity category, 14,000 moving from medium-sized to small and 6,000 moving from large to medium-sized.
April 2026 year-end’s will be able to follow the rules first, although there is some potential planning available for clients to take early advantage of the changes – please contact us to discuss further.
Companies able to move down a size category will be entitled to the accompanying reduction in reporting and audit requirements.
For entities moving into the small entities regime, the impact will be significant. They will be exempt from the requirement to have a statutory audit of their annual accounts (subject to implications of group membership) and from producing a Strategic Report. They will also be able to take advantage of simpler accounting requirements. Those moving to the micro entities regime will additionally be exempt from producing a Directors’ Report and certain ‘sensitive’ disclosures.
You can find more details on the excellent ICAEW website here or speak to Murray or Kate at Alexander Knight & Co.