UK plans to raise company size thresholds by about 50% and trim directors' report duties
In March 2024 the UK Government completed the first phase of its non-financial reporting review. It planned to raise the money thresholds for company size categories by about 50%, remove duplicated and outdated directors' report requirements, and simplify remuneration reporting. The FRC welcomed the plans on 22 March 2024.
The Department for Business and Trade completed the first phase of its review of non-financial reporting for UK companies in March 2024, as part of its Smarter Regulation programme. The FRC, which helped with the review, welcomed the Government's plans to legislate on 22 March 2024.
What was planned
- Raise the money thresholds that decide whether a company is micro, small, medium or large by about 50%, to reflect inflation. The FRC said this would move more than 100,000 companies into simpler reporting.
- Remove some duplicated and outdated requirements from the directors' report.
- Streamline detailed directors' remuneration reporting.
Who is affected
UK companies near a size boundary, and the people preparing their accounts and directors' reports.
What to do
Nothing changed in March 2024. Review which size category each company would fall into under the higher thresholds.
Later developments
The thresholds were raised by the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 (SI 2024/1303), made on 9 December 2024. They apply to financial years beginning on or after 6 April 2025. Small companies: turnover up to £15 million (was £10.2 million) and balance sheet up to £7.5 million (was £5.1 million). Medium: £54 million and £27 million. Micro-entities: £1 million and £500,000.