There are four sizes of company to consider when preparing and filing accounts and reports in accordance with the Companies Act 2006 (CA 2006):
micro-entity,
small,
medium,
large.
The Company size is determined by factors that are set out in CA 2006.
Certain types of companies are excluded from using certain classification.
e.g. Public Companies must use the Large company regime.
Quantitative Factors
There are 3 classifications of company size to consider when preparing your accounts – micro-entity, small, medium or large:
turnover
balance sheet total (meaning the total of the fixed and current assets)
the average number of employees
Micro-Entity
A micro-entity must meet at least 2 of the following conditions:
turnover must be not more than £632,000
the balance sheet total must be not more than £316,000
the average number of employees must be not more than 10
Small
For accounting periods beginning on or after 1 January 2016, a small company must meet at least 2 of the following conditions:
annual turnover must be not more than £10.2 million
the balance sheet total must be not more than £5.1 million
the average number of employees must be not more than 50
For accounting periods beginning before 1 January 2016 the thresholds were:
annual turnover must be not more than £6.5 million
the balance sheet total must be not more than £3.26 million
the average number of employees must be not more than 50
Medium
To be a medium-sized company, you must meet at least 2 of the following conditions:
the annual turnover must be no more than £36 million
the balance sheet total must be no more than £18 million
the average number of employees must be no more than 250
Large
Companies that do not meet the above criteria must apply the Large Company regime.
In addtion, certain types of companies automatically fall in the large company definition:
a public company
a company that has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity or that carries on an insurance market activity
