Company Formation Specialists

Not All Types Of Small Companies Are Eligible For The Exemption

Audited accounts must be delivered to Companies House if the company falls into any of the following categories:

1. A parent company or subsidiary undertaking (unless dormant for the period during which it was a subsidiary) except where
• the group qualifies as a small group or would qualify if all the bodies corporate in the group were companies; and t
• the turnover for the whole group is not more than £1 million net or £1.2 million gross (for a financial year which ended before 26 July 2000 or if the company is a charity, the combined turnover must be no more than £350,000 net or £420,000 gross); and
• the group's combined balance sheet total is not more than £1.4 million net (£1.68 million gross).

***Please note: New audit exemption thresholds apply to financial years ending after 30 March 2004. A parent company or subsidiary undertaking (unless dormant for the period during which it was a subsidiary) cannot qualify except where the group:
• qualifies as a small group or would qualify if all the bodies corporate in the group were companies ; and
• the turnover for the whole group is not more than £5.6 million net (or £6.72 million gross); and
• the group’s combined balance sheet total is not more than £2.8 million net (or £3.36 million gross).


2. A member of a group of companies in which any member is:
• a public company or body corporate which (not being a company) has power under its constitution to offer shares or debentures to the public;
• a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity;
• a person who carries on insurance market activity.


3. A person who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity.
4. A person who carries on insurance market activity.
5. An appointed representative within the meaning of s.39 of the Financial Services and Markets Act 2000.
6. A public limited company unless the company is dormant
7. A special register body or employers association under the Trade Union and Labour Relations (Consolidation) Act 1992.
8. A company where an audit is required by a member or members holding at least 10% of the nominal value of issued share capital or holding 10% of any class of shares; or - in the case of a company limited by guarantee - 10% of its members in number. The demand for the accounts to be audited should be in the form of written notice to the company, deposited at the registered office at least one month before the end of the financial year in question.

Some flat management companies may have to prepare audited accounts to comply with the terms of their lease. If in doubt, you should seek professional advice. Top Of Page

Online Company Formation