Companies which qualify as either small or medium sized can often obtain exemptions in the type and format of their annual statutory accounts
The exemptions can relate to both their main accounts provided to their shareholders and those which are delivered to Companies House which are available for public inspection.
Small Companies
Small companies are those which have gross assets of less than £2.8 million. Gross assets are defined as the total of the balance sheet assets before the deduction of any liabilities.
The turnover limit for a small company is £5.6 million and during the year in question, the mean number of people employed by it must not exceed fifty.
To be classed as small, the company must qualify on any two of the above three tests.
Medium Sized Companies
The criteria for medium sized companies is that the total for both fixed and current assets must not be in excess of £11.4 million, turnover less than £22.8 million and no more than two hundred and fifty staff.
Again, a company can qualify as medium if the meets any two of these criteria.
Consequences of Being Small or Medium Sized
In situations where a company meets the criteria necessary to be classed as either small or medium sized in a particular year, it automatically qualifies for that same status in the next year.
This is irrespective of whether the company is still sufficiently small or medium sized to meet the current requirements in isolation.
