In September 2012, Vince Cable announced changes to audit thresholds
which have impacted accounting periods ending on or after 1 October
2012. This could exempt 36,000 UK companies and LLPs, 83,000 subsidiaries
and 67,000 dormant companies from mandatory audit.
The revised legislation was introduced as part of the government's
commitment to end the UK's gold-plating of EU rules and reduce the
red tape burden on small and growing businesses. The department for
Business, Innovation and Skills (BIS) undertook a review prior to
implementing the legislation identifying potential cost savings of
£390m to UK business.
The following key changes were introduced:
