Proposed changes to monetary company size thresholds

Proposed changes to monetary company size thresholds

In the government’s latest drive to promote economic growth, there is an ongoing focus on easing the regulatory burden for companies, especially when it comes to non-financial reporting. 

Most recently, the government has confirmed several increases to monetary company size thresholds from October 2024. This will be the first update to these specific thresholds since they were introduced in 2016. 

What are the changes? 

Set to be effective for all accounting periods beginning on or after 1 October 2024, the changes will apply to turnover and net asset thresholds, for micro-entity; small; medium-sized; and large companies. 

The confirmed monetary company size thresholds are as follows: 

Size regime Current turnover threshold (£) New turnover threshold (£) Current net asset threshold (£) New net asset threshold (£) 
Micro-entity  

(≤ 10 employees) 

≤ 632,000 ≤ 1m ≤ 316,000 ≤ 500,000 
Small 

(≤ 50 employees) 

≤ 10.2m ≤ 15m ≤ 10.2m ≤ 7.5m 
Medium 

(≤ 250 employees) 

≤ 36m ≤ 54m ≤ 18m ≤ 27m 
Large 

(> 250 employees) 

> 36m > 54m > 36m > 27m 

(This table scrolls horizontally on mobile)* 

What does this mean for companies? 

It’s inevitable that these changes will cause many companies to re-categorise as a smaller company than before, therefore alleviating some reporting obligations. Should a company fall under a new threshold for turnover or net assets, then it’s important to remember that they must meet two of the three criteria (turnover, net assets, and average number of employees) for that size category. If this does not happen in a company’s first financial year, then it must meet these thresholds for two consecutive years before it is classified as that size. 

Other proposed changes 

On 16th May 2024, the Department for Business & Trade published a consultation document, ‘Non-financial reporting review: simpler corporate reporting’. This included a proposed increase to the threshold for average number of employees at which a company would qualify as medium-sized, from 250 to 500. 

The government is calling on anyone with interest in this area to respond to the consultation by 27 June 2024. If you would like to learn more, then the full consultation document can be found here. 

As your company grows and legislation continues to change, it’s vital that you stay in the know and remain compliant. Whether your company qualifies as small, medium or large, our Audit Team is on hand to help you navigate your obligations and make sure that you stay at the forefront of regulatory compliance. 

For further guidance, please don’t hesitate to get in touch with a member of our team at Fiander Tovell! 

Navigating the National Minimum Wage Changes

Navigating the National Minimum Wage Changes

As businesses are preparing for the upcoming changes to National Minimum Wage (NMW), staying compliant with such wage regulations are paramount. In turn, outsourcing your payroll services will keep your business compliant to ensure you have experts in dealing with matters to avoid any fines.  

As of 1st April 2024, these significant national minimum wage changes will be introduced by the government aiming to ensure fair compensation for workers across different age groups and employment statuses.  

While this is great news for employees, it is important that you’re prepared for the financial impact of your new NMW obligations. As part of our outsourced payroll services, we provide a seamless transition into the new NMW rates, ensuring your compliance with uniformed changes. By partnering with a reputable payroll provider like FT Pay, businesses can navigate NMW changes seamlessly.  

Let’s delve into the specifics of the imminent NMW rates and what they mean for your company’s payroll. 

Age-Based Minimum Wage Rates: The NMW rates in the UK are structured based on age brackets, with different rates applying to different age groups. Here’s a comparison between the current and upcoming rates: 

Ages Before (Current) After (1st April 2024) 
23 and over (NLW) £10.42 £11.44 
21-22* £10.18 £11.44 
18-20 £7.49 £8.60 
Under 18 / Apprentice £5.28 £6.40 


*
Starting from 1st April 2024, workers over the age of 21 will be entitled to the National Living Wage (NLW). 

Our team of experienced payroll operators are on hand to help you navigate any changes and meet your statutory obligations to ensure that your workforce is paid accurately and on time. Considering outsourcing your payroll to us? Find out more about our in-house payroll bureau here.  

As part of FT Pay, our in-house payroll bureau, we have experienced payroll operators who will assist you in navigating the NMW changes. This will ensure you meet your statutory obligations by paying staff the updated amount. FT Pay also includes several other beneficial services that can streamline processes to make sure your business receives the comprehensive support that goes beyond compliance with NMW changes.  

To get in touch about outsourcing your payroll or to enquire about the new NMW update, please don’t hesitate to get in touch with our Commercial Client Director, Fabrice Legris, at @fabricelegris@fiandertovell.co.uk