BIS contemplating audit exemptions for small businesses
More than £200 million could be saved by small businesses in the UK if proposals currently in consultation by the Department for Business, Innovation and Skills (BIS) come into force.
The changes would widen the criteria for audit exemptions affecting around 100,000 small businesses and bring the UK in line with EU regulations.
Current audit exemptions in the UK only extend to companies with a balance sheet totalling less than £3.26 million and profits less than £6.5 million.
New changes would mean that only one of the above criteria need to be met, not both, which would widen the net further.
Once companies have an annual turnover of £22.8 million they are considered to be a medium sized business and a profits of £11.4 million.
Ed Davey, the business minister, said: “Over time, both the volume and costs of reporting requirements for UK companies have increased. Tackling these problems now will save UK small and medium-sized businesses millions every year.”