On 14 October 2024, the Department for Business and Trade announced that it would be pressing ahead with the increase in company size thresholds.

These changes will come into force on 6 April 2025.

Additionally, audit exemption thresholds will automatically increase in line with the small companies’ thresholds.

Therefore, your business may now be exempt from audit.

What are the new thresholds?

The current and revised thresholds for small companies are:

	Current	New – financial years beginning on or after 6 April 2025
Turnover	£10.2m	£15m
Balance sheet total (gross assets)	£5.1m	£7.5m

There is no change to the threshold for average number of employees (50).

What to consider

Your company directors will need to provide an additional statement for an audit exemption.

The statement must identify the exemption being relied on and confirm that the company qualifies for the exemption.

If you or your directors have questions about the changes to company size thresholds and whether you qualify for an audit exemption, we are here to help.

Contact us today to discuss how these changes could impact your company.