Further to announcements earlier this year that the monetary thresholds which determine company size will be raised by 50%, changes are looking likely to be laid before the UK parliament at some point this summer. It is therefore essential that you plan ahead to make sure you’re prepared for the changes which are expected to take effect for accounting periods beginning on or after 1 October 2024.
If the new measures go ahead, Micro entity thresholds will move from not more than £632,000 turnover to not more than £1m. Small companies will increase to not more than £15m turnover, from £10.2m. The upper and medium threshold will move to not more than £54m, with everything above that being classed as a large company. Balance sheet total thresholds would increase to not more than £500,000, £7.5m, £27m and anything above £27m.
The changes are part of a package of measures announced with the aim of easing the UK’s regulatory burden with regards to non-financial reporting and the higher thresholds will result in reducing the number of companies who are obligated to undergo statutory audits.
Following the changes, many SMEs could become exempt from being required to complete a statutory audit, potentially relieving some financial burden and administrative resources. This could in turn free up extra time to focus on other business areas and growth opportunities. However, whilst your company may no longer be required to complete an audit, it’s important to seek advice and consider any other mandatory statutory requirements which are still applicable.
Get in touch
As with any changes likely to impact your business, we strongly recommend planning in advance where possible and making necessary changes to keep any disruption to a minimum. If you wish to discuss the changes and how they many impact your audit requirements, please get in touch by emailing enquiries@pmm.co.uk or call 01254 679131.
