Company size thresholds have risen — your company may now be 'micro' or 'small'

 

From 6 April 2025, the monetary thresholds that decide whether your company counts as micro, small, medium or large rose for the first time since 2013 — and the change is bigger than many directors realise.

 

The new thresholds:

 

Micro-entity: turnover of £1m or less, balance sheet total of £500,000 or less, and 10 or fewer employees on average.

 

Small company: turnover of £15m or less, balance sheet total of £7.5m or less, and 50 or fewer employees on average.

 

You qualify if you meet at least two of the three tests.

 

Why it matters: around 113,000 companies are expected to move from small to micro. That brings practical wins — more companies qualify for audit exemption, simpler reporting requirements, and micro-entities can prepare simpler micro-entity accounts under FRS 105.

 

If your year-end is approaching, it's worth checking which bracket you now fall into — your filing and audit obligations may have changed.

 

Anna