Generally an audit will be required, by company law, if a company is not regarded as small. Most companies will be regarded as small provided that they do not exceed any two of the following three criteria for two consecutive years:


With effect for years commencing prior 1 January 2016

With effect for years commencing on or after 1 January 2016

Annual turnover

£6.5 million

£10.2 million

Gross assets

£3.26 million

£5.1 million

Average number of employees




The above is a simplification of the legislation as there are additional points to consider particularly in a group company structure and therefore we would therefore suggest that if you are unfamiliar with the detailed rules that you seek further guidance.

It is not possible to implement the increased threshold limits early for audit exemption purposes.

At Haywood & Co, we provide a wide range of audit engagements, not only for companies, but for solicitors, charities, Friendly Societies,  Industrial and Provident Societies, pension funds and others.

If you have any enquiries, please contact one of our offices or: