Changes to company size thresholds will become effective for periods commencing on or after 6 April 2025. By increasing the number of companies that qualify for simpler financial reporting, it is intended that the burden should be reduced for smaller businesses.
The size of a business is classified when it satisfies two out of the three criteria relating to turnover, balance sheet and number of employees. The thresholds are set out below:
| Micro | Small | Medium | Large | ||||||
| Current | New | Current | New | Current | New | Current | New | ||
| Annual turnover £ | <£632k | <£1m | <£10.2m | <£15m | <£36m | <£54m | £36m+ | >£54m | |
| Balance sheet total £ | <£316k | <£500k | <£5.1m | <£7.5m | <£18m | <£27m | £18m+ | >£27m | |
| Average number of employees |
<10
|
<50
|
<250
|
>250 | |||||
A company only changes size classification if it meets the size thresholds for two consecutive years.
To discuss your own circumstances and how the changes will affect your company’s reporting requirements, please get in touch with Eimear Brown, Head of Audit E: eimearbrown@bakertillymm.co.uk T: 028 9032 3466