To simplify reporting requirements and to reflect inflation, new reporting thresholds have been introduced for financial years starting on or after 6 April 2025. The monetary size thresholds that decide whether a company is classed as micro, small, medium or large have gone up – meaning more businesses can now take advantage of simpler reporting requirements and additionally, may no longer need an audit.  

This article outlines the new thresholds and contains information about transitional arrangements. Changes to Directors’ Report requirements, also effective from 6 April 2025, are covered in the same article. In addition, the UK has removed certain overlapping EU-origin reporting requirements from Directors' Remuneration Reports. The Companies (Directors' Remuneration and Audit) (Amendment) Regulations 2025, which came into effect on 11 May 2025, removed requirements related to the UK's implementation of the EU Shareholder Rights Directive. These changes mainly address overlaps with existing UK reporting standards.   

In the article, Fahad Asgar, Technical Manager within ICAEW’s Corporate Reporting Faculty welcomed the regulations as a step forward. He says, “Ensuring proportionality and removing duplicative reporting requirements is an important first step towards a modernised model for UK corporate reporting.” 

Where does your business fit now? 

Unsure how your organisation should now be categorised? A great place to start is our webpage on Choosing the right regime for you.  

To delve deeper, this article outlines the differences between FRS 102 and FRS 105 and other factors to consider when deciding whether to prepare accounts using the small or micro-entities regime. 

Step-by-step guides will walk you through the criteria for the small and micro-entities regimes. All of this guidance, plus more on the reporting simplifications and filing options, can be found on Small and micro entity reporting hub.  

In-depth factsheets and helpsheets

For those looking for more in-depth analysis, the following helpsheets are available: 

• Is a company micro? 
• Is a company or group small? 

More comprehensive analysis of preparing accounts under the small companies and micro-entity regimes is available in these factsheets: 

• Preparing and filing UK small entity accounts 
• Preparing and filing micro-entity accounts 
• FRS 102 Periodic Review 2024 Amendments 

Recent webinar 

Covering topical reporting issues relevant to late 2024 and early 2025 year-ends, along with an overview of upcoming accounting and regulatory developments impacting those preparing accounts under Section 1A Small Entities of FRS 102 and FRS 105 for micro-entities, our one-hour Small and micro entities: topical reporting issues webinar is available to watch on demand.    

Looking ahead

More resources on the upcoming accounting developments – the changes in UK GAAP arising from the Periodic Review 2024 amendments – can be found on our hub. 

Stay up to speed on corporate reporting developments impacting small and micro entities by registering to join the Corporate Reporting Faculty or join the Small and Micro Businesses Community for resources to help at every stage of the business journey.