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