Audit Threshold Increase
15 February 2016
We considered the ongoing discussion around audit exemption limits in the February 2015 issue of Business Edge.
Following the conclusion of this consultation, the Government has confirmed that it will be increasing the audit exemption limits to maintain the link between the thresholds for eligibility for the small companies regime, and those for the audit exemption.
Companies will not be required to have an audit for the financial years commencing on or after 1 January 2016 if, at their balance sheet date, they satisfy at least two of the three following criteria, in general for two consecutive financial years:
- Turnover ≤ £10.2m
- Balance sheet total ≤ £ 5.1m
- Number of employees ≤ 50
and they are not otherwise excluded from accessing the audit exemption, for example due to the nature of their business or because they are part of a group that is not small.
View the Business Edge 2016 index