Quick question:What is the turnover that defines "A Small Company"

harryhound

I may be about to establish a trading relationship of sorts with a firm that is classified as "a small company".

I don't want at this stage to order up accounts at Companies House if they are not going to tell me very much.

Anybody know a web based source of good free information?

(I know this is not really tax but I bet the tax man does similar exercises - If there is a better bit of the forum to ask, please point me at it)

anniecave

That phrase could mean anything. Is that their words? Waitrose (for example) is "small" compared to a company that trades in many locations all over the world. But it's obviously big compared to my local corner shop.

If you're actually thinking about doing business with them, then I'd get a copy of their accounts. They could be big or small, but if they're actually a loss making company about to go under, you may not want to do business with them!

zygurat789

The turnover limit is £2m but there are other conditions on no. of employees and total assets, I think.
BTW the HMRC get far more information than Companies House.

Baz_2

To be a small company according to Companies House and the Companies Act 2006 then you must be under 2 of the 3 following limits for two years running.

Turnover £6.5m
Employees 50
BS Asset total £3.26m

Just google small company for more details.

zygurat789

Baz wrote: »

To be a small company according to Companies House and the Companies Act 2006 then you must be under 2 of the 3 following limits for two years running.

Turnover £6.5m
Employees 50
BS Asset total £3.26m

Just google small company for more details.

That's inflation for you

Mikeyorks

Based on the same Act ......... HMRC have a different interpretation! (for y/e's after 30th Jan 2004) :

Turnover ........... not exceeding £5.6M
Balance Sheet ... not exceeding £ 2.8M

But - at least concur on the 50 staff!

http://www.hmrc.gov.uk/manuals/camanual/CA23170.htm

harryhound

I remember going into a building society once upon a time and saying "have you got anything more convincing than this" when given the anodyne sheet of A4 folded into three columns.
It was lunch time,
Fluster fluster
Eventually I left with a fairly full set of accounts: it was a return to the building societies commission or the registrar of friendly societies or something.
I remember noticing that someone had got a BIG mortgage (40K!!) on a horse livery business - and wondered if it was one of the directors' girlfriends.;)

harryhound

I remember going into a building society once upon a time and saying "have you got anything more convincing than this" when given the anodyne sheet of A4 folded into three columns.
It was lunch time,
Fluster fluster
Eventually I left with a fairly full set of accounts: it was a return to the building societies commission or the registrar of friendly societies or something.
I remember noticing that someone had got a BIG mortgage (40K!!) on a horse livery business - and wondered if it was one of the directors' girlfriends.;)

Baz_2

Mikeyorks wrote: »

Based on the same Act ......... HMRC have a different interpretation! (for y/e's after 30th Jan 2004) :

Turnover ........... not exceeding £5.6M
Balance Sheet ... not exceeding £ 2.8M

But - at least concur on the 50 staff!

http://www.hmrc.gov.uk/manuals/camanual/CA23170.htm

That's the old rates, the new rates are the ones I posted. That link is 6 years out of date.

thenudeone

http://www.companieshouse.gov.uk/infoAndGuide/faq/auditThresholds.shtml

Baz_2

thenudeone wrote: »

http://www.companieshouse.gov.uk/infoAndGuide/faq/auditThresholds.shtml

And that's the Companies Act 1985.

Anyone else want to tell me I'm wrong. :rotfl:

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1082184412&type=RESOURCES

Accounts exemption thresholds

The Companies Act 2006 also includes new accounts exemption limits.
To be a small company, at least two of the following conditions must be met:

• annual turnover must be £6.5 million or less
• the balance sheet total must be £3.26 million or less
• the average number of employees must be 50 or fewer

There you go. Happy now?