Audit Exemption Turnover Threshold: Raised to £10.2m.
The Government is to raise the audit exemption threshold to the maximum allowed under EU law. In a statement read out in parliament, Anna Soubry, minister for small business, industry and enterprise, said the decision had been made after considering responses to its discussion paper. Companies will not be required to have an audit for the financial years commencing on or after 1 January 2016 if at their balance sheet date they satisfy at least two out three criteria, in general for two consecutive financial years:
- Turnover of under £10.2m (Previously £6.5m),
- A balance sheet total of £5.1m or less (Previously £3.26m),
- And fewer than 50 employees.
The Government estimate that raising the audit exemption thresholds will bring a further 7,400 companies within scope of the exemption, but predict that 4,400 will choose to continue to have an external audit. This further continues the Government’s previously stated aim of reducing the red tape faced by SME’s.