Auditing and Accounting

S R Lynn & Co

Auditing and Accounting
New Financial Thresholds

The Government is to take advantage of the option to raise the thresholds defining small and medium-sized companies. They will use the power in the Companies Act 2006, s. 468 to amend the thresholds defining small and medium-sized companies and groups. The new limits will apply for accounting period beginning on or after 6 th April 2008.

Thresholds used to define Small and Medium-Sized Companies.
	Existing Thresholds		No change	Proposed Thresholds
	Turnover not more than)	Balance sheet total (not more than)	Number of employees (not more than)	Turnover (not more than)	Balance sheet total (not more than)
Small company	£5.6 million	£2.8 million	50	£6.5 million	£3.26 million
Small Group	£5.6 million net (or £6.72 million gross)	£2.8 million net (or £3.36 million gross)	50	£6.5 million net (or £7.8 million gross)	£3.26 million net (or £3.9 million gross)
Medium - sized company	£22.8 million	£11.4 million	250	£25.9 million	£12.9 million
Medium –sized Group	£22.8 million net (or £27.36 million gross)	£11.4 million net (or £13.68 million gross)	250	£25.9 million net (or £13.1 million gross)	£12.9 million net (or £15.5 million gross)
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