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Back to FAQSmall and Medium-Sized Company Exemptions

What Does a Small or Medium-Sized Company Have to Deliver to the Registrar and What Exemptions Are Available?

Small companies can prepare and file simpler, less detailed accounts than those required by large and medium companies.
The requirements for companies subject to the small companies’ regime are set out in Parts 15 and 16 of the Companies Act 2006. Further information on the detailed format and content of accounts for small companies can be found in the relevant regulations.

The Companies Act 2006 and regulations also set out what the directors’ report of a small company must contain. Such a report does not have to contain a business review or a statement as to the amount that the directors recommend be paid by way of dividend. If the company has taken advantage of the small companies’ exemption in preparing the directors’ report it must contain a statement above the director’s or secretary’s signature to that effect.

  • Small companies do not have to deliver a copy of the directors’ report or the profit and loss account to Companies House.
  • Small companies preparing Companies Act accounts can deliver an abbreviated balance sheet.
  • Small companies preparing International Accounting Standards accounts must deliver a full balance sheet to Companies House.

If you prepare accounts in accordance with the provisions applicable to small companies, whether you register abbreviated or full accounts, you must include a statement in a prominent position on the balance sheet that the accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.
Abbreviated accounts of a small company must include:

  • The abbreviated balance sheet and notes; and
  • a special auditor's report (unless the company is also claiming audit exemption).
  • Abbreviated accounts of a medium-sized company must include:
  • the abbreviated profit and loss account;
  • the full balance sheet;
  • a special auditor's report;
  • the directors' report; and
  • notes to the accounts.

The special auditor's report should state that in the auditor's opinion the company is entitled to deliver abbreviated accounts in accordance with section 445(3) of the Companies Act 2006 and that they have been properly prepared in accordance with the regulations made by the Secretary of State.

The balance sheet (and if appropriate, the directors' report) must contain a statement that the accounts have been prepared in accordance with the special provisions of section 445(3) Companies Act 2006 in regard to medium-sized companies.

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