For financial years that begin on or after 1 January 2016

Your company may qualify for an audit exemption if it has at least 2 of the following:

  • an annual turnover of no more than £10.2 million
  • assets worth no more than £5.1 million
  • 50 or fewer employees on average

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The previous rules (last updated after 1st October 2012) you will not require an audit if you are a private limited company and meet at least two of the following size criteria:

  1. your turnover is less than £6.5m
  2. your assets are less than £3.26m
  3. you have less than 50 staff
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However, the exemption based on organisations size will not be available if any of the following arise:
  1. Any member of group of members (members being shareholders), not less than in aggregate than 10% in nominal value of the company’s issued share capital, lodge a formal request that an audit be carried out, no later than one month before the end of the company’s year end.
  2. If the company was at any   time during the financial year either i) a public company, ii) a banking or insurance company, iii) an e-money issuer, iv) a MiFID investment firm, v) a UCITS management firm or vi) carries on insurance market activity.
  3. If the company at any time during the year part of a group or a group requiring an audit.
If you are exempt from having an audit and your business is substantial and/or has foreign stakeholders, we would recommend that the business undertakes an audit which has the following benefits:
  1. You will receive an accurate account of your true financial position.
  2. Potential highlight and identification of any potential areas of internal control or process weaknesses in your business and advise you on appropriate remedial action.
  3. You have a registered auditor professionally documented basis for future finance applications, reports etc.
  4. You have peace of mind of knowing your accounts are in full compliance statutory requirements.
  5. The overall image and reputation of your business is greatly enhanced by your being able to present audited accounts to your investors, bank or other third parties.
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