UK raises company size thresholds by about 50% from April 2025
Regulations made on 9 December 2024 raised the turnover and balance sheet thresholds that decide whether a UK company is micro, small, medium or large. A small company can now have turnover up to £15 million and a balance sheet up to £7.5 million. The new limits apply to financial years beginning on or after 6 April 2025.
The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 (SI 2024/1303) were made on 9 December 2024 and came into force on 6 April 2025. They deliver the first part of the Government's non-financial reporting review, announced in March 2024.
New thresholds (two of three tests, employee numbers unchanged)
- Micro-entity: turnover up to £1 million (was £632,000); balance sheet up to £500,000 (was £316,000).
- Small: turnover up to £15 million (was £10.2 million); balance sheet up to £7.5 million (was £5.1 million).
- Medium: turnover up to £54 million (was £36 million); balance sheet up to £27 million (was £18 million).
When it applies
Financial years beginning on or after 6 April 2025. Transitional rules let companies apply the new limits when looking back at earlier years to decide their size.
Who is affected
UK companies and groups near a size boundary. Many will qualify for lighter reporting, audit exemption or the small companies regime for the first time.
What to do
Re-test each company's size for the first financial year beginning on or after 6 April 2025, and update audit and filing plans.