New Financial Reporting Rules: What They Mean for Roofing Businesses
Depending on the size of your business, these changes have the potential to save your company money and simplify reporting processes. While there are fewer obligations for smaller businesses, it’s crucial to keep track of the changes to ensure you’re still meeting the legal requirements that do apply.
As of 6 April 2025, the government will introduce higher turnover and balance sheet thresholds for micro, small, and medium-sized companies through the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations.
The turnover and balance sheet thresholds for micro-entities, small and medium businesses will increase by approximately 50%. Any companies that move down a size will be entitled to an accompanying reduction in reporting and audit requirements. This is in effort of reducing the regulatory burden.
In addition, The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations, outlines changes to the contents of the Directors’ Report for large and medium-sized entities, removing the requirement of information including but not limited to:
- Information on financial instruments
- Information about likely future developments
- Information about research and development
- The employment of disabled people
Non-large companies will benefit from the following changes:
- Exemption from the requirement of a statutory audit of annual accounts from producing a Strategic report (micro-entities are also exempt from producing a Directors’ Report)
- Simpler accounting requirements
- Medium sized companies are except from certain Strategic Report requirements
The new thresholds are as follows:
- Micro entities and micro-entity LLPs: not more than £1 million turnover; not more than £500,000 balance sheet total
- Small companies and LLPs: not more than £15 million turnover; not more than £7.5 million balance sheet total
- Small company groups and LLP groups: not more than £15 million net (or £18 million gross) aggregate turnover; not more than £7.5 million net (or £9 million gross) aggregate balance sheet total
- Medium-sized companies and LLPs: not more than £54 million turnover; not more than £27 million balance sheet total
- Medium-sized company groups and LLP groups: not more than £54 million net (or £64 million gross) aggregate turnover; not more than £27 million net (or £32 million gross) aggregate balance sheet total
- Large companies and LLPs: Any company that exceeds at least two of the mediumsized company criteria.
- Large company groups and LLP groups: Any group that exceeds at least two of the medium-sized group criteria.
