Company Formation Specialists

What Exemption Is Available And For Which Companies?

There is total exemption from audit for certain small companies (including very small charitable companies) if they are eligible and wish to take advantage it. Some charitable companies are exempt from audit but must provide an accountant's report on the accounts (partial exemption).

To qualify for total audit exemption, a company must

• qualify as small
• have a turnover of not be more than £1 million; and
• have a balance sheet total of not more than £1.4 million.

For a charitable company to qualify for total audit exemption it must qualify as small, its gross income must not be more than £90,000 and its balance sheet total must not be more than £1.4 million (£2.8 million for financial years ended after 30 March 2004).

Charitable companies which qualify as small and have a gross income between £90,000 and £250,000 and a balance sheet total of no more than £1.4 million qualify for partial exemption.

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