New company thresholds kicked in for accounting periods starting 6 April 2025 with the turnover limit for small companies increased from £10.2m to £15m. The medium sized threshold increases to £54m from current £36m.

This also means that audit exemption thresholds increase in line with the new limits.

The uplift in thresholds has been driven by the government’s drive to cut complexity and reduce the reporting burden on companies and limited liability partnerships (LLPs).

The threshold changes apply to financial years beginning on or after 6 April 2025. The date that the financial statements are approved by the board or the date that any audit or accountant’s report is signed is not relevant.