Sections 444 and 445 give a number of exemptions to
small and medium sized companies. These are, broadly:
small and medium sized companies. These are, broadly:
·
Small
companies are exempt from some filing requirements: They need only file an
abbreviated balance sheet and need not include many of the notes to the
Small
companies are exempt from some filing requirements: They need only file an
abbreviated balance sheet and need not include many of the notes to the
accounts. They do not need to file a profit and loss account or the director’s
report.
·
Medium-sized
companies can file a set of financial statements which can include a slightly
abbreviated profit and loss account and exemption from certain disclosure of
information.
Medium-sized
companies can file a set of financial statements which can include a slightly
abbreviated profit and loss account and exemption from certain disclosure of
information.
·
Small and
medium-sized companies are defined as companies which satisfy two or more of
the following:
Small and
medium-sized companies are defined as companies which satisfy two or more of
the following:
Small-sized Medium-sized
Turnover does not exceed £5.6 million £22.8 million
Balance sheet total does not exceed £2.8 million £11.4
million
million
Average number of employees 50 250
Does not exceed
These exemptions apply to groups of companies where
the whole group falls within these limits.
the whole group falls within these limits.
The exemptions do not apply to a company if, in the
year, it is:
year, it is:
·
A public
company;
A public
company;
·
An
insurance company; or
An
insurance company; or
·
A company
carrying on a regulated activity under the financial services and market Act
2000, which, basically, includes banks, building societies, investment and
pension advisors, friendly societies, credit unions etc;
A company
carrying on a regulated activity under the financial services and market Act
2000, which, basically, includes banks, building societies, investment and
pension advisors, friendly societies, credit unions etc;
·
A group
where one of its members is also a public company or regulated under the
financial services and markets Act 2000.
A group
where one of its members is also a public company or regulated under the
financial services and markets Act 2000.
Auditors have to give special report where small
and medium-sized companies file abbreviated accounts.
and medium-sized companies file abbreviated accounts.
