Companies Threshold Changes

The Government has announced, that with effect from April 2025, the size thresholds for companies are to be increased by approximately 50%.

Company sizes are determined by measures of turnover, balance sheet totals and number of employees.

The turnover measure for micro companies is to increase to £1m and small companies to £15m.

As small companies do not genertally require an audit, this should remove the requirements for many companies to have audits.

In addition, IR35 rules apply to differently to small companies, with the responsibility for deciding if IR35 apply resting on the ‘worker’ company as opposed to the ‘recipient’ company where a company is small.