Company Formation Specialists

What Does a Small or Medium-Sized Company Have to Deliver to the Registrar and What Exemptions Are Available?

The company can deliver the accounts which were prepared for its members under the special provisions of part VII of the Companies Act 1985, or it can deliver an abbreviated version of these accounts.

Abbreviated accounts of a small company must include:

• The abbreviated balance sheet and notes; and
• a special auditor's report (unless the company is also claiming audit exemption).

Abbreviated accounts of a medium-sized company must include:

• the abbreviated profit and loss account;
• the full balance sheet;
• a special auditor's report;
• the directors' report; and
• notes to the accounts.

The special auditor's report should state that in the auditor's opinion the company is entitled to deliver abbreviated accounts and that they have been properly prepared in accordance with section 246(5) or (6) or 246A(3) of the Companies Act 1985, as the case may be.

The balance sheet (and if appropriate, the directors' report) must contain a statement that the accounts are prepared in accordance with the special provisions in Part VII of the Companies Act 1985 relating to small or medium-sized companies, as the case may be.

Exemptions:

Certain small or medium-sized companies may prepare accounts for their members under the special provisions of sections 246 and 246A of the Companies Act 1985. In addition, they may prepare and deliver abbreviated accounts to the Registrar.

There are exemptions available to small and medium-sized companies. Certain small companies with a turnover of less than £1 million (£250,000 for companies that are charities) and assets of less than £1.4 million can claim exemption from audit.

The period accounts have to cover and the time allowed for sending them to Companies House is covered in the other FAQs.

Companies House information may help you decide whether you qualify to prepare 'small' or 'medium' accounts. Top Of Page

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