classification
The size of a company has an effect on many aspects of its operation, including its financial requirements and filing obligations.

To be classified as a small or medium company, there are certain criteria which you must fill.

As a small company, two of these three statements must be true:

• your annual turnover is not more than £2.8 million
• your balance sheet is not more than £1.4 million
• you have no more than 50 employees

Filing regulations for small companies include an abbreviated balance sheet and notes, auditor’s report if required (under special circumstances), no profit & loss.

As a medium company, two of these three statements must be true:

• your annual turnover is not more than £11 million
• your balance sheet is not more than £5.6 million
• you have no more than 250 employees

Filing regulations for medium companies include a full balance sheet, abbreviated profit & loss, auditors report, directors’ reports and notes and notes to accounts.