Are there any financial audit obligations for a new UK entity?

After choosing your legal entity and agreeing your corporate structure, it's time to get to create a tax, audit and compliance environment.

To find out if there are financial audit obligations for new UK entities, firstly, you need to look at the size of the worldwide group, not just the UK entity. Meeting the small group criteria will exempt the UK entity from financial audit if two of the following three criteria are met, based on net consolidated figures :

  • Group turnover less than £10.2m
  • Total Balance Sheet Assets less than £5.1m
  • Group staff levels less than 50 employees.

Certain UK businesses cannot avail of any relief from audit, regardless of the size of the group. I.e. certain businesses in the Financial Services sector etc.

However, this is not a simple question to answer. A definitive “yes” or “no” can only be given once the specifics of each situation are assessed.

Read more about how we support International industry at every stage of Entering the UK Market business journey. As always, please feel free to get in touch with me to discuss your own business situation.

Further Reading

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