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New Audit Thresholds in Oct 2024: Key Impacts on Businesses Explained
20 May 2024
Rishi Sunak’s announcement on Tuesday of an elevation to audit thresholds is a pivotal development for small and medium-sized enterprises (SMEs). With the bar raised, an estimated 132,000 SMEs will be exempt from mandatory audits, allowing them to redirect financial resources previously allocated for auditing towards other critical areas of business growth and innovation.
Read the article below to find out what the new audit thresholds could mean for your business.
How will this impact my business?
However, this shift also brings new challenges. The exemption may lead to reduced financial transparency and oversight, potentially impacting stakeholder trust and investment. It’s crucial for SMEs to weigh the benefits of reduced audit costs against the value of voluntary audits in maintaining robust financial health and investor confidence.
As we navigate this change, it’s imperative for SMEs to stay informed and consult with financial advisors to make strategic decisions that align with their long-term business objectives.
What are the new audit thresholds?
| Threshold | Micro | Small | Medium |
| Turnover | £632k to £1m | £10.2m to £15m | £25m to £54m |
| Gross Assets | £316k to £500k | £5.1m to £7.5m | £18m to £27m |
| Employee Numbers | 10 same | 50 same | 250 same |
Later this year, the government are consulting on the average employee numbers threshold for medium size enterprises with a view to increasing it from 250 to 500. Additionally, they will also discuss removing the requirement for medium size enterprises from preparing a strategic report.
Specialised Expertise
Chris specialises in small to large owner-managed businesses. He started in the profession in 1999 and has helped his clients with outsourcing, payroll, tax compliance, due diligence, valuation, finance system review, accounts, and audits.
Working with a range of clients, from clients with turnovers up to £1 billion, to individual companies with turnovers below £ 1 million, Chris will look to add value and commercial guidance to all his clients.
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