Are there any financial audit obligations for a new UK entity?
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 annual turnover less than £10.2m (this figure will increase to £15m from 6th April 2025)
- Total Balance Sheet Assets less than £5.1m (this figure will increase to £7.5m from 6th April 2025)
- 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
You may also find the information in these articles useful for the stage of your business
Are there any critical timing issues to consider when setting up a business in the UK?
Are there any import implications of Brexit that I need to consider?
How do I start a business in the UK?
What are the admin procedures for running a UK business payroll?
What tax registrations do I need to consider when starting up a UK business?
What filing dates do a UK business need to meet?
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