Company law thresholds - United Kingdom
Size criteria for companies in the UK are laid down in the Companies Act 2006.In December 2024 the UK Government laid legislation, the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 (2024 Regulations”) before Parliament to increase the monetary size thresholds for micro, small and medium-sized entities. The 2024 Regulations also apply the same increased thresholds to limited liability partnerships. In addition, the 2024 Regulations remove certain requirements from the Directors’ Report. Please read the explanatory memorandum to the legislation for further insight into the changes.Please also click the 2025 article by Grant Thornton NI Changes to company size thresholds in the UK for more information including application of the thresholds.
The changes in thresholds will take effect from 6 April 2025.
A transitional provision is included in the legislation in respect of the amendments. Thus, when considering qualification as a particular company size by reference to a previous financial year, the amendments made by the 2024 Regulations are treated as having applied in those previous years. This is so that companies and LLPs can benefit from the new thresholds as soon as possible after the legislation comes into force.
In 2024 Chartered Accountants Ireland as part of the Consultative Committee of Accountancy Bodies-Ireland responded to a UK Department of Business and Trade Consultation on Simpler Corporate Reporting.
Certain types of companies are not permitted to take advantage of the regimes for small or medium-sized companies, either because the company is ineligible, or it is part of an ineligible group.
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Size - company
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Thresholds pre-6 April 2025
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New thresholds (from 6 April 2025)
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two or more of the following criteria
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two or more of the following criteria
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Micro company
(S384A)
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Balance sheet total * not more than £316k
Turnover not more than £632k
Employees: not more than 10
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Balance sheet total * not more than £500k
Turnover not more than £1 million
Employees: not more than 10
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Small company
(S382(1A) (3))
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Balance sheet total * not more than £5.1 million
Turnover not more than £10.2 million
Employees: not more than 50
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Balance sheet total * not more than £7.5 million
Turnover not more than £15 million
Employees: not more than 50
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Medium company
(S465)
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Balance sheet total * not more than £18 million
Turnover not more than £36 million
Employees: not more than 250
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Balance sheet total * not more than £27 million
Turnover not more than £54 million
Employees: not more than 250
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Large company: Those entities which do not meet the criteria to be classed as a medium sized or smaller company.
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*The balance sheet total means the aggregate of the amounts shown as assets in the company's balance sheet.
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Size - group
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Thresholds pre-6 April 2025
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New thresholds (from 6 April 2025)
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two or more of the following criteria
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two or more of the following criteria
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Small group
(S383)
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Aggregate balance sheet total not more than £5.1 million net (or £6.1 million gross)
Aggregate turnover not more than £10.2 million net (or £12.2 million gross)
Aggregate no. of Employees: not more than 50
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Aggregate balance sheet total not more than £7.5 million net (or £9 million gross)
Aggregate turnover not more than £15 million net (or £18 million gross)
Aggregate no. of Employees: not more than 50
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Medium group
(S466(3))
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Aggregate balance sheet total not more than £18 million net (or £21.6 million gross)
Aggregate turnover not more than £36 million net (or £43.2 million gross)
Aggregate no. of Employees: not more than 250
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Aggregate balance sheet total not more than £27 million net (or £32 million gross)
Aggregate turnover not more than £54 million net (or £64 million gross)
Aggregate no. of Employees: not more than 250
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Large group: Those entities which do not meet the criteria to be classed as a medium sized or smaller group.
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Note: The reference above to sections is to sections of the Companies Act 2006
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