C3C4C5C6Part 15Accounts and reports

Annotations:
Modifications etc. (not altering text)
C4

Pt. 15 applied (with modifications) (6.4.2008) by The Partnerships (Accounts) Regulations 2008 (S.I. 2008/569), regs. 4, 7, Sch. Pt. 1

C5

Pt. 15 applied (with modifications) (1.10.2009) by The Unregistered Companies Regulations 2009 (S.I. 2009/2436), regs. 3-5, Sch. 1 para. 16 (with transitional provisions and savings in regs. 7, 9, Sch. 2)

Chapter 1Introduction

Companies subject to the small companies regime

C1C2382Companies qualifying as small: general

1

A company qualifies as small in relation to its first financial year if the qualifying conditions are met in that year.

2

A company qualifies as small in relation to a subsequent financial year—

a

if the qualifying conditions are met in that year and the preceding financial year;

b

if the qualifying conditions are met in that year and the company qualified as small in relation to the preceding financial year;

c

if the qualifying conditions were met in the preceding financial year and the company qualified as small in relation to that year.

3

The qualifying conditions are met by a company in a year in which it satisfies two or more of the following requirements—

1. Turnover

F1Not more than £6.5 million

2. Balance sheet total

F2Not more than £3.26 million

3. Number of employees

Not more than 50

4

For a period that is a company's financial year but not in fact a year the maximum figures for turnover must be proportionately adjusted.

5

The balance sheet total means the aggregate of the amounts shown as assets in the company's balance sheet.

6

The number of employees means the average number of persons employed by the company in the year, determined as follows—

a

find for each month in the financial year the number of persons employed under contracts of service by the company in that month (whether throughout the month or not),

b

add together the monthly totals, and

c

divide by the number of months in the financial year.

7

This section is subject to section 383 (companies qualifying as small: parent companies).