Audit thresholds have changed, but the need for assurance hasn’t
31/03/26
The UK government’s decision to raise company size thresholds for financial years starting on or after 6 April 2025 means many organisations will soon be reclassified from medium to small, removing the legal requirement for a statutory audit. Turnover limits for medium sized companies are increasing from £10.2 million to £15 million, balance sheet limits from £5.1 million to £7.5 million, while employee numbers remain unchanged. As a result, thousands of businesses will fall below the new criteria.
No longer needing an audit reduces administrative burden; however, it also removes an important layer of independent scrutiny. The need for reliable, credible financial information hasn’t changed for lenders, investors, suppliers or boards.
Audit remains important because it strengthens governance, builds confidence in the numbers, and helps identify risks. It supports funding discussions, reinforces trust with stakeholders, and provides the external perspective that growing businesses rely on.
If your business is affected by these changes, it’s worth speaking to mgr about whether a voluntary audit is still appropriate, particularly if you’re futureproofing for growth, acquisitions or regulatory developments. Maintaining assurance now can help ensure your business is ready for what comes next.
