Accounts & filing
A small company meets two of three tests on turnover, balance sheet total and employees.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityA company is small if it meets two of three conditions: turnover not more than £15m, balance sheet total not more than £7.5m, and not more than 50 employees, following the uplift to the size thresholds. Small companies use FRS 102 Section 1A.
What small status is worth
Group and parent complications
A company is small if it meets two of three conditions: turnover not more than £15m, balance sheet total not more than £7.5m, and not more than 50 employees, following the uplift to the size thresholds. Small companies use FRS 102 Section 1A.
Reduced disclosure, no statutory audit in most cases, no strategic report, and a shorter, cheaper set of accounts. For a growing company, staying inside the thresholds is worth planning around, because the step up to a medium-sized company brings audit cost and full disclosure.
The size tests apply for two consecutive years before status changes, so a single spike in turnover does not immediately drag you into the next bracket.
Where a company is part of a group, the tests apply to the group as a whole as well as the individual company, and gross figures are used unless the aggregate test is met. Owning several companies can therefore push a small trading company into audit scope through the group total.
Ineligible groups, including those with a listed or regulated member, cannot use the small regime at all regardless of size.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
No. Corporation tax rates depend on profit and associated companies, not on the accounts regime.
As the average monthly number of employees during the year, including directors on payroll.
Nothing changes immediately. The status usually changes only after two consecutive years on the wrong side of the tests.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
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