For many businesses, having an annual audit has simply become part of the routine (a very expensive routine).
Recent changes to the audit thresholds mean that many companies which previously required a statutory audit may now qualify for exemption.
The Rules Have Changed
For accounting periods beginning on or after 6 April 2025, the audit exemption thresholds increased significantly.
A company will generally qualify for audit exemption if it meets at least two of the following three criteria:
- Annual turnover: £15 million or less
- Total assets: £7.5 million or less
- 50 or fewer employees
As a result, many businesses that have historically required an audit may now find that it is no longer a legal requirement.
The Audit Still Has Value
Many businesses continue with an audit for sound commercial reasons, including:
- Meeting bank or lender requirements.
- Providing assurance to shareholders or investors.
- Complying with group reporting requirements.
For many companies, these benefits outweigh the additional cost.
The key point is that, for some businesses, an audit may now be a commercial choice rather than a statutory obligation.
Could Your Business Save Money?
If your company now qualifies for audit exemption and there is no commercial reason to continue with an audit, switching to an accounts and corporation tax compliance service could significantly reduce your annual professional fees while ensuring you remain fully compliant with Companies House and HMRC requirements.
Speak to Menzies
If your business is currently audited and you’d like to understand whether this is still a legal requirement, we’d be happy to help.
We are helping many businesses review their circumstances, explain whether their company now qualifies for audit exemption and, if appropriate, provide a competitive quote for your statutory accounts and corporation tax compliance.
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