With the aim of reducing complexity of reporting requirements, company size monetary thresholds are set to increase, with legislation planned to be laid this summer. The intention is that companies will benefit from the changes for financial years that start on or after 1 October 2024 and the government anticipates that over 132,000 businesses will be taken out of non-financial reporting with these changes.
Business size is classified when they satisfy two out of the three criteria relating to turnover, balance sheet and number of employees. The proposed changes are set out below:
| Micro | Small | Medium | Large | |||||
| Currently | Proposed | Currently | Proposed | Currently | Proposed | Currently | Proposed | |
| Annual turnover
|
Not more than £632k | Not more than £1m | Not more than £10.2m | Not more than £15m | Not more than £36m | Not more than £54m | £36m+ | £54m+ |
| Balance sheet total | Not more than £316k | Not more than £500k | Not more than £5.1m | Not more than £7.5m | Not more than £18m | Not more than £27m | £18m+ | £27m+ |
| Average number of employees |
Not more than 10
|
Not more than 50
|
Not more than 250
|
251+ | ||||
If you have any queries as to how this will affect your business please contact: Eimear Brown, Head of Audit T: 028 9032 3466 E: eimearbrown@bakertillymm.co.uk