Companies Act 1985

F1 249A Exemptions from audit E+W+S

(1) Subject to section 249B, a company which meets the total exemption conditions set out below in respect of a financial year is exempt from the provisions of this Part relating to the audit of accounts in respect of that year.

(2) Subject to section 249B, [F2 a company which is a charity and] which meets the report conditions set out below in respect of a financial year is exempt from the provisions of this Part relating to the audit of accounts in respect of that year if the directors cause a report in respect of the company’s individual accounts for that year to be prepared in accordance with section 249C and made to the company’s members.

(3) The total exemption conditions are met by a company in respect of a financial year if—

(a) it qualifies as a small company in relation to that year for the purposes of section 246,

(b) its turnover in that year is not more than [F3 £5.6 million], and

(c) its balance sheet total for that year is not more than [F4 £2.8 million].

[F5 (3A) In relation to any company which is a charity, subsection (3)(b) shall have effect with the substitution—

(a) for the reference to turnover of a reference to gross income, and

(b) for the reference to [F3 £5.6 million] of a reference to £90,000.]

(4) The report conditions are met by [F6 a company which is a charity] in respect of a financial year if—

(a) it qualifies as a small company in relation to that year for the purposes of section 246,

(b) its [F7 gross income] in that year is more than £90,000 but not more than [F8 £250,000], and

(c) its balance sheet total for that year is not more than £1.4 million .

F9 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) For a period which is a company’s financial year but not in fact a year the maximum figures for turnover or gross income shall be proportionately adjusted.

[F10 (6A) A company is entitled to the exemption conferred by subsection (1) or (2) notwithstanding that it falls within paragraph (a) or (b) of [F11 section 249AA(1)].]

(7) In this section—

“balance sheet total” has the meaning given by section 247(5), and

“gross income” means the company’s income from all sources, as shown in the company’s income and expenditure account

Textual Amendments

F1 Ss. 249A-249E and preceding cross-heading inserted (11.8.1994) by S.I. 1994/1935, reg. 2

F2 Words in s. 249A(2) substituted (15.4.1997) by S.I. 1997/936, reg. 2(2)

F3 Words in s. 249A(3)(b)(3A)(b) substituted (30.1.2004) by The Companies Act 1985 (Accounts of Small and Medium-Sized Enterprises and Audit Exemption) (Amendment) Regulations 2004 (S.I. 2004/16), reg. 4(2)

F4 Words in s. 249A(3)(c) substituted (30.1.2004) by The Companies Act 1985 (Accounts of Small and Medium-Sized Enterprises and Audit Exemption) (Amendment) Regulations 2004 (S.I. 2004/16), reg. 4(3)

F5 Words in s. 249A(3A) inserted (15.4.1997) by S.I. 1997/936, reg. 2(4)

F6 Words in s. 249A(4) substituted (15.4.1997) by S.I. 1997/936, reg. 2(5)(a)

F7 Words in s. 249A(4)(b) substituted (15.4.1997) by S.I. 1997/936, reg. 2(5)(b)(i)

F8 Words in s. 249A(4)(b) substituted (15.4.1997) by S.I. 1997/936, reg. 2(5)(b)(ii)

F9 S. 249A(5) substituted (15.4.1997) by S.I. 1997/936, reg. 2(6)

F10 S. 249(6A) inserted (retrospectively) by S.I. 1997/936, reg. 2(7)(8)

F11 Words in s. 249A(6A) substituted (26.5.2000 with application as mentioned in art. 1(2) of the amending S.I.) by S.I. 2000/1430, arts. 1(2), 2(1)(3)

Modifications etc. (not altering text)

C1 S. 249A(2) applied (18.1.2005) by 1996 c. 52, Sch. 1 para. 16A(2) (as inserted by Housing Act 2004 (c. 34), ss. 218, 270, Sch. 11 para. 18)