Accounting and audits
What information do you need to provide?
In most cases, small and medium-sized companies and limited liability partnerships (LLPs) are entitled to submit abbreviated accounts to Companies House, which means they have to provide less information.
For financial years starting before 6 April 2008, to be a small company or LLP, you must meet at least two of these three conditions:
annual turnover must be £5.6 million or less
For financial years starting on or after 6 April 2008, a small company (not LLP) must meet at least two of the following conditions:
annual turnover must not be more than £6.5 million
the average number of employees must not be more than 50
For financial years starting before 6 April 2008, to be a medium-sized company or LLP, you must meet at least two of these three conditions:
annual turnover must be £22.8 million or less
For financial years starting on or after 6 April 2008, a medium-sized company (not LLP), must meet at least two of the following conditions:
annual turnover must be no more than £25.9 million
Small and medium-sized LLPs will be able to take advantage of the higher thresholds for accounting periods starting on or after 1 October 2008.
Even if a company or LLP stops being small or medium-sized through expansion, it will still be regarded as such for one financial year afterwards. If it then reverts to being small or medium-sized the following year, the exemption will continue uninterrupted.
There are special rules for groups of small and medium-sized companies and LLPs whose total overall size falls within the small and medium categories.
Abbreviated accounts can cut costs and save time. You also minimise the information made available to others, especially rivals. When you're a small and growing company you may not want full details of the money you earn and spend to be widely known.
But remember, potential customers, suppliers, investors and lenders may check your accounts before doing business with you.
Recent expansions to the scheme have allowed some small financial services providers and some small businesses, such as home-finance providers, that comply with Sharia Law to take part in the scheme.
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