What are the UK audit exemption thresholds?

For financial periods beginning on or after 6 April 2025, a company qualifies as small if it meets at least two of three tests: turnover of no more than £15 million, balance sheet total of no more than £7.5 million, and no more than 50 employees on average. Small companies are generally exempt from statutory audit.

Is this a formal determination?

No. It is general guidance based on the Companies Act 2006 exemption criteria and it does not account for every circumstance. Group membership, your articles, a shareholder request or a funding agreement can all require an audit regardless of size. If the answer matters, speak to a partner.

Does the checker record my answers?

No. Everything runs in your browser. Nothing is submitted, stored or sent to us unless you choose to contact us afterwards.

Do you need a UK statutory audit?

Five questions against the Companies Act 2006 exemption criteria, updated for the thresholds that apply to periods beginning on or after 6 April 2025. Nothing is stored and no details are required.

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Companies Act 2006

Do you need a UK statutory audit?

Answer up to five questions to understand whether your company has a legal obligation to have its accounts audited. This is general guidance based on the Companies Act 2006 exemption criteria, not a formal determination.

What changed in 2025

The small company limits rose for the first time in a decade. Turnover moved from £10.2 million to £15 million and the balance sheet total from £5.1 million to £7.5 million. The employee limit stayed at 50, and you still only need to meet two of the three.

The change applies to periods beginning on or after 6 April 2025, not periods ending. A December year end first uses the new limits for the year ending 31 December 2026.

Being eligible is not the same as being free of an audit. Public companies, many FCA-regulated firms, members holding 10% of the shares, group structures and funding agreements can all require one anyway.

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Questions about the checker

What are the UK audit exemption thresholds?: For financial periods beginning on or after 6 April 2025, a company qualifies as small if it meets at least two of three tests: turnover of no more than £15 million, balance sheet total of no more than £7.5 million, and no more than 50 employees on average. Small companies are generally exempt from statutory audit.
Is this a formal determination?: No. It is general guidance based on the Companies Act 2006 exemption criteria and it does not account for every circumstance. Group membership, your articles, a shareholder request or a funding agreement can all require an audit regardless of size. If the answer matters, speak to a partner.
Does the checker record my answers?: No. Everything runs in your browser. Nothing is submitted, stored or sent to us unless you choose to contact us afterwards.

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Not sure the answer fits your situation?

Group structures, shareholder rights and funding agreements all override the size test. A partner can tell you where you stand in a short conversation.

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