The entitlement to a particular company size regime is determined by reference to criteria set out in CA 2006. Qualitative factors are used to establish whether a company is excluded from a regime because of its nature. For example, public companies and certain financial services companies cannot qualify as micro-entities, small, or medium-sized companies. There are also restrictions in certain group situations, for example, when a company is part of an ‘ineligible group’.

A company will additionally need to assess whether it qualifies for a regime by meeting the relevant size thresholds for turnover, balance sheet total (meaning the total of the fixed and current assets) and the average number of employees. The company size limits are met for a financial year if any two of the following three thresholds are met:

Prior to the UK’s general election in July 2024, the UK government announced plans to raise the monetary company size thresholds, with effect from 1 October 2024. The new government has confirmed that legislation to uplift the monetary size thresholds will be laid before Parliament by the end of 2024, though it remains to be seen whether the thresholds will be the same as those originally planned by the previous government. Find out more about what was planned in the following By All Accounts article:

• Article: It’s time to raise the threshold

There are special provisions available in CA 2006 for small companies and micro-entities when preparing and filing their annual accounts and reports. For more information on the criteria visit:

• Entitlement to the small companies regime
• Entitlement to the micro-entities regime

For more information about the requirements and simplifications available to small companies and micro-entities, including some practical considerations to help you choose the right financial reporting regime according to your circumstances visit:

• Small and micro-entity reporting – choosing the right regime

There are also some special provisions available to medium-sized companies when preparing their annual accounts and reports, for example, with regards to the information required in the strategic report and the directors’ report.

For more information on the criteria for medium-sized companies visit:

• Entitlement to the medium-sized companies regime

Any companies that do not meet the criteria to be a micro-entity, or a small or medium-sized company, are large companies and are required to prepare and file full accounts.

For detailed guidance on the criteria for each size regime of company in the Companies Act 2006, ICAEW members and Corporate Reporting Faculty subscribers can visit:

• Factsheet: Entitlement to the micro, small, medium and large companies regimes
• View all UK regulation factsheets
• Watch UK regulation on-demand webinars