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.
| Existing Thresholds | No change | Proposed Thresholds | |
|---|---|---|---|
| Turnover (not more than) | Balance sheet total (not more than) | Number of employees (not more than) | |
| Small company | £6.5 million | £3.26 million | 50 |
| Small Group | £6.5 million net (or £7.8 million gross) | £3.26 million net (or £3.9 million gross) | 50 |
| Medium - sized company | £25.9 million | £12.9 million | 250 |
| Medium –sized Group | £25.9 million net (or £31.1 million gross) | £12.9 million net (or £15.5 million gross) | 250 |
Last updated: 6 December 2011
