For financial years starting on or after 6 April 2008, to qualify for total audit exemption, a company must:

• qualify as small.
• have a turnover of not more than £6.5 million.
• have a balance sheet total of not more than £3.26 million.

Small and medium-sized LLPs will be able to take advantage of the higher thresholds for accounting periods starting on or after 1 October 2008.

In these cases you can submit audited accounts if you wish, but it’s not compulsory. Bear in mind there can be drawbacks. Banks, credit managers and your customers and suppliers rely on information from Companies House to assess creditworthiness and will be reassured by an independant audit. If you decide to submit audited accounts, you must appoint an auditor.

Please see also the new changes to Financial Thresholds April 2008