{"id":5703,"date":"2025-05-28T12:52:52","date_gmt":"2025-05-28T11:52:52","guid":{"rendered":"https:\/\/well-tax.com\/?p=5703"},"modified":"2025-05-28T12:59:19","modified_gmt":"2025-05-28T11:59:19","slug":"nuevas-oportunidades-de-exencion-de-auditoria-a-partir-de-abril-de-2025-redefinicion-de-los-umbrales-de-tamano-de-las-empresas","status":"publish","type":"post","link":"https:\/\/well-tax.com\/es\/new-audit-exemption-opportunities-from-april-2025-company-size-thresholds-redefined\/","title":{"rendered":"Nuevas oportunidades de exenci\u00f3n de auditor\u00eda a partir de abril de 2025: Se redefinen los umbrales de tama\u00f1o de las empresas"},"content":{"rendered":"\n
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New company size threshold changes will introduce wider access to audit exemptions for UK firms starting from 6 April 2025. The goal of these changes is to ease the administrative burden on companies by reducing reporting and audit requirements.<\/p>\n\n\n\n

This article describes the effects of the updated exemption requirements and examines how they relate to corporate tax<\/a> laws, specifically in relation to group arrangements and tax payment requirements.<\/p>\n\n\n\n

New size threshold<\/strong><\/h2>\n\n\n\n
<\/td>Micro<\/strong><\/td><\/td>Small<\/strong><\/td><\/td>Medium<\/strong><\/td> <\/strong><\/td><\/tr><\/thead>
<\/td>Previous<\/td>New<\/strong><\/td>Previous<\/td>New<\/strong><\/td>Previous<\/td>New<\/strong><\/td><\/tr>
Turnover not more than:<\/strong><\/td>\u00a3632k<\/td>\u00a31m<\/strong><\/td>\u00a310.2m<\/td>\u00a315m<\/strong><\/td>\u00a336m<\/td>\u00a354m<\/strong><\/td><\/tr>
Balance sheet total* not more than:<\/strong><\/td>\u00a3316k<\/td>\u00a3500k<\/strong><\/td>\u00a35.1m<\/td>\u00a37.5m<\/strong><\/td>\u00a318m<\/td>\u00a327m<\/strong><\/td><\/tr>
Monthly average number of employees, not more than:<\/strong><\/td>10<\/td>10<\/strong><\/td>50<\/td>50<\/strong><\/td>250<\/td>250<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

It has been estimated by the Government that 113,000 companies, previously classified as small, have now become micro-entities, while 14,000 medium-sized businesses have reclassified as small entities.<\/p>\n\n\n\n

As a result of these company size threshold reclassifications, the new micro-entities are no longer required to prepare a director\u2019s report and can file abridged accounts. For entities that have transitioned into the small entities regime, the impact is more significant as they are now exempt from the requirement to prepare statutory annual audit accounts.<\/p>\n\n\n\n

Audit Exemptions from 6 April 2025<\/strong><\/h2>\n\n\n\n

From financial years beginning on or after 6 April 2025, a company may qualify for audit exemption if it meets at least two of the following criteria for two consecutive financial years:<\/p>\n\n\n\n

<\/td>From 6 April 2025 \u00a0\u00a0\u00a0\u00a0 <\/strong><\/td>Pre-6 April 2025<\/strong><\/td><\/tr>
Turnover not exceeding \u00a0\u00a0\u00a0<\/strong><\/td>\u00a315 million\u00a0\u00a0\u00a0\u00a0\u00a0<\/td>\u00a310.2 million<\/td><\/tr>
Balance sheet total not exceeding\u00a0\u00a0\u00a0<\/strong><\/td>\u00a37.5 million\u00a0\u00a0\u00a0\u00a0<\/td>\u00a35.1 million<\/td><\/tr>
Average number of employees not exceeding <\/strong><\/td>50<\/td>50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The exemption must be explicitly claimed with a statement in the company\u2019s financial statements asserting that the company qualifies for audit exemption under the Companies Act 2006 (typically Section 477).<\/p>\n\n\n\n

For the “two-year consecutive rule,” the legislation contains a transitional provision that permits accountants to assume that the new criteria applied during the previous financial year as well. <\/p>\n\n\n\n

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Audit Exemption for Subsidiaries (Section 479A)<\/strong><\/h2>\n\n\n\n

In addition to size-based exemptions, a subsidiary company can claim audit exemption under Section 479A if:<\/p>\n\n\n\n

    \n
  • Its parent company is established in the UK (note: post-Brexit, EEA parent companies no longer qualify);<\/li>\n\n\n\n
  • The parent company prepares consolidated financial statements covering the subsidiary;<\/li>\n\n\n\n
  • The parent company provides a statutory guarantee for all of the subsidiary\u2019s outstanding liabilities.<\/li>\n<\/ul>\n\n\n\n

    This exemption also requires a formal claim and must be supported by relevant documentation, including a statement of guarantee filed with Companies House.<\/p>\n\n\n\n

    Ineligibility for Audit Exemption<\/strong><\/h2>\n\n\n\n

    The following companies cannot claim audit exemption regardless of their size:<\/p>\n\n\n\n

      \n
    • Public limited companies (PLCs);<\/li>\n\n\n\n
    • Companies involved in financial services, insurance, or regulated industries;<\/li>\n\n\n\n
    • Companies that are part of ineligible groups (those that include a listed company);<\/li>\n\n\n\n
    • Companies whose shareholders representing at least 10% of share capital (or voting rights) have formally requested an audit.<\/li>\n<\/ul>\n\n\n\n

      Shareholder must request the audit in writing, sending the communication to the company\u2019s registered office, at least one month before the end of the financial year.<\/p>\n\n\n\n

      Consolidated Accounts Exemption<\/strong><\/h2>\n\n\n\n

      Parent companies in the UK are generally required to prepare consolidated financial statements that include all subsidiaries. However, under Section 399 of the Companies Act 2006, they may claim exemption if the group qualifies as small. From 6 April 2025, a group is considered small if it meets at least two of the following thresholds:<\/p>\n\n\n\n

        \n
      • Aggregate turnover of no more than \u00a315 million net (or \u00a318 million gross)<\/li>\n\n\n\n
      • Aggregate balance sheet total of no more than \u00a37.5 million net (or \u00a39 million gross)<\/li>\n\n\n\n
      • Average number of employees of 50 or fewer<\/li>\n<\/ul>\n\n\n\n

        The term “net” refers to intra-group transactions being excluded, while “gross” includes all transactions.<\/p>\n\n\n\n

        The parent company may be eligible for the exemption if its standalone accounts meet at least two of these net thresholds. If the parent company\u2019s standalone accounts do not meet the net thresholds, then the consolidated group accounts are considered, and the gross thresholds apply.<\/p>\n\n\n\n

        A parent company, or any of its group members, that is a listed entity or a regulated financial services business cannot opt out of preparing consolidated accounts, even if it meets the criteria for exemption.<\/p>\n\n\n\n

        Unlike the audit exemption, which requires companies to meet the criteria for two consecutive years, the consolidated accounts exemption is determined annually based on the financial year in question.<\/p>\n\n\n\t\t

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