In the UK, the description of a company’s size is, by law, determined by specific thresholds based on turnover, balance sheet total, and average number of employees. These thresholds are used as classifications for reporting and auditing purposes.
Here's a breakdown of the criteria for the thresholds and the new sizes, applicable to accounting periods commencing on or after 6th April 2025.
To qualify for a specific size category, a company or LLP must meet two or more of the three criteria in a given financial year.
Micro company
- Turnover: Not more than £1 million (previously £632k)
- Balance sheet total: Not more than £500,000 (previously £316k)
- Employees: Not more than 10 (remains the same)
Small company
- Turnover: Not more than £15 million (previously £10.2m)
- Balance sheet total: Not more than £7.5 million (previously £5.1m)
- Employees: Not more than 50
Medium company
- Turnover: Not more than £54 million (previously £36m)
- Balance sheet total: Not more than £27 million (previously £18m)
- Employees: Not more than 250
Large company
- Companies not meeting the criteria for micro, small, or medium are considered large.
The information provided in this blog is for general informational purposes only and should not be considered professional advice. As far as we are aware, the content is accurate at time of publication. Torgersens assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
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