It has been announced that new regulations increasing company size thresholds (also removing certain requirements from the Directors’ Report) will be effective from 6 April 2025 via the government publishing The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024.
New monetary size threshold changes (effective from 6 April 2025):-
| Micro | Small | Medium | |
| Turnover | Not more than £1m | Not more than £15m | Not more than £54m |
| Balance sheet (gross assets) | Not more than £0.5m | Not more than £7.5m | Note more than £27m |
| Average number of employees | Not more than 10 | Not more than 50 | Not more than 250 |
(Remember that need to meet 2 out of 3 criteria for 2 years running except in first period)
Changes to the Directors’ Report requirements:-
Large and medium-sized entities will no longer be required to include in their Directors’ Report information on:
- financial instruments;
- important events that have occurred since the end of the financial year;
- likely future developments;
- research and development;
- branches outside the UK;
- the employment of disabled people (this requirement is also being removed for small entities);
- engagement with employees; and
- engagement with customers and suppliers.
Noting much of this (certainly for large entities who need to include the s172 statement) being duplicated from what is already required in the Strategic Report.
