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HMRC internal manual

Enquiry Manual

From
HM Revenue & Customs
Updated
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Examining Accounts: Accountants and Auditors: Audit Requirement Monetary Limits

All companies, other than dormant companies, must have their annual financial statements audited unless they are exempted. The financial limits below are the most common exemption.

Financial Years… ending on or after 27 February 2000 ending on or after 30 March 2004 beginning on or after 6 April 2008
       
Company Turnover not to exceed 1,000,000 5,600,000 6,500,000
Company Balance Sheet total assets not to exceed 1,400,000 2,800,000 3,260,000
Group Turnover not to exceed 1,200,000    
(net 1,000,000) 6,720,000
(net 5,600,000) 7,800,000
(net 6,500,000)    
  Group Balance Sheet total assets not to exceed 1,680,000
(net 1,400,000) 3,360,000
(net 2,800,000) 3,900,000
(net 3,260,000)

The assessment of turnover and total assets is done on an annual basis and both criteria must be met. If the accounting period is longer or shorter than 12 months the turnover threshold is adjusted accordingly. If a company meets various conditions, EM2782, its accounts do not have to be audited.

Contact your local HMRC Accountant if you think a company’s accounts should have been audited but do not appear to have been.