Following consultation, the Government has announced increased limits for company size thresholds. The aim is for this to be law by the summer.
These are all part of further BREXIT freedoms and further deregulatory measures will be introduced to simply reporting.
So the new criteria is due to come into effect for periods commencing on or after 1 October 2024. You will note how the figures are much more round sum numbers now we do not have to translate from round sum Euros.
Changes in levels are as follows:
| MICRO ENTITIES | PROPOSED LEVEL | CURRENT LEVEL |
| Annual Turnover | Under £1,000,000 | Under £632,000 |
| Balance Sheet Total | Under £500,000 | Under £316,000 |
| Average Employees | Under 10 | Under 10 |
| SMALL ENTITIES | PROPOSED LEVEL | CURRENT LEVEL |
| Annual Turnover | Under £15,000,000 | Under £10,200,000 |
| Balance Sheet Total | Under £7,500,000 | Under £5,100,000 |
| Average Employees | Under 50 | Under 50 |
| MEDIUM ENTITIES | PROPOSED LEVEL | CURRENT LEVEL |
| Annual Turnover | Under £54,000,000 | Under £36,000,000 |
| Balance Sheet Total | Under £27,000,000 | Under £18,000,000 |
| Average Employees | Under 250 | Under 250 |
| LARGE ENTITIES | PROPOSED LEVEL | CURRENT LEVEL |
| Annual Turnover | Over £54,000,000 | Over £36,000,000 |
| Balance Sheet Total | Over £27,000,000 | Over £18,000,000 |
| Average Employees | Under 250 | Under 250 |
Two out of three conditions need to be met to fall into the lower category.
The effect of the changes is expected to see:
• 5,000 large companies being reclassified as medium-sized to access more proportionate reporting;
• 13,000 medium-sized companies falling into the small companies’ regime enabling them to benefit from potential audit exemption and filing simpler accounts; and
• 113,000 small companies falling into the micro-entities regime to allow them to prepare simpler accounts.
Finally, the Government also plan to consult later in the year as to whether the employee numbers threshold for medium-sized companies will increase from 250 to 500. A General Election may get in the way of this proposal though.