{"id":12211,"date":"2024-04-25T16:42:18","date_gmt":"2024-04-25T15:42:18","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=12211"},"modified":"2024-04-25T21:28:33","modified_gmt":"2024-04-25T20:28:33","slug":"changes-to-uk-company-size-thresholds-for-statutory-reporting","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/changes-to-uk-company-size-thresholds-for-statutory-reporting\/","title":{"rendered":"Changes to UK company size thresholds\u00a0for statutory reporting"},"content":{"rendered":"

To simplify reporting requirements for SMEs, the UK Government is planning to increase company size thresholds by 50% from 1 October 2024. This measure is expected to benefit around 132,000 UK companies, by freeing them from burdensome non-financial reporting requirements.\u00a0<\/span><\/p>\n

We discuss the changes to company size thresholds for statutory reporting in more detail below, as well as additional proposals on regulatory reporting due for consultation later in the year.<\/p>\n

Proposed changes to company size thresholds from October 2024<\/h3>\n

On 18 March 2024, the Government announced a package of measures<\/a> designed to ease the regulatory burden and complexity of financial and non-financial reporting for UK businesses.\u00a0<\/span><\/p>\n

One such measure is an uplift to the monetary thresholds that determine a company\u2019s size for corporate reporting, as set out in the Companies Act 2006.<\/p>\n

To take account of inflation, the Government intends to increase these thresholds by 50%, which will impact the number of companies qualifying as micro-entity, small, medium-sized, and large.<\/p>\n

The current thresholds<\/b>, which apply to accounting periods beginning on or after 1 January 2016, are as follows:<\/p>\n\n\n\n\n\n\n
<\/td>\nMicro-entity<\/strong><\/td>\nSmall company<\/strong><\/td>\nMedium company<\/strong><\/td>\nLarge company<\/strong><\/td>\n<\/tr>\n
Annual turnover <\/strong><\/td>\nNot more than \u00a3632,000<\/td>\nNot more than \u00a310.2m<\/td>\nNot more than \u00a336m<\/td>\nMore than \u00a336m<\/td>\n<\/tr>\n
Balance sheet total<\/strong><\/td>\nNot more than \u00a3316,000<\/td>\nNot more than \u00a35.1m<\/td>\nNot more than \u00a318m<\/td>\nMore than \u00a318m<\/td>\n<\/tr>\n
Average no. of employees <\/strong><\/td>\nNot more than 10<\/td>\nNot more than 50<\/td>\nNot more than 250<\/td>\nMore than 250<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

If the Government goes ahead with the changes as expected, the new thresholds<\/b> for accounting periods beginning on or after 1 October 2024 will be as follows:<\/p>\n\n\n\n\n\n\n
<\/td>\nMicro-entity<\/strong><\/td>\nSmall company<\/strong><\/td>\nMedium company<\/strong><\/td>\nLarge company<\/strong><\/td>\n<\/tr>\n
Annual turnover <\/strong><\/td>\nNot more than \u00a31m<\/td>\nNot more than \u00a315m<\/td>\nNot more than \u00a354m<\/td>\nMore than \u00a354m<\/td>\n<\/tr>\n
Balance sheet total<\/strong><\/td>\nNot more than \u00a3500,000<\/td>\nNot more than \u00a37.5m<\/td>\nNot more than \u00a327m<\/td>\nMore than \u00a327m<\/td>\n<\/tr>\n
Average no. of employees <\/strong><\/td>\nNot more than 10<\/td>\nNot more than 50<\/td>\nNot more than 250<\/td>\nMore than 250<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

As a result of increasing the monetary thresholds, approximately 132,000 UK companies will no longer be subject to onerous form-filling and non-financial statutory reporting requirements. Specifically, it will mean that:<\/p>\n