Audit Threshold Rises to £10m+

Posted on Friday 18th March, 2016 by

Following the Government’s decision to raise the audit exemption threshold to its maximum level in February 2016, only companies with at least £10.2 million in turnover, a balance sheet of over £5.1 million and more than 50 employees will require a statutory audit. Companies below these levels may opt out of the audit process – a move advisers warn could result in slacker tax reporting standards and raise concerns around the quality of financial reporting, which could be detrimental to a firm’s ability to raise funding.

The new threshold could also lead to an increase in tax enquiries by HMRC due to the potential for compliance issues and errors in accounts if they are not reported on with the same rigour as an audit.

To find out more please click here

Comments are closed.