Audit exemption for UK subsidiaries
My client is an American company with a UK subsidiary. It is not a parent company, nor is its ultimate parent listed. It clearly meets the size criteria for audit exemption as a standalone company, and qualifies to file abbreviated accounts.
I have spoken to some experienced auditors, and conventional wisdom seems to be that such a company does not require an audit. However, the Companies House guidance seems to suggest otherwise, or at best is ambiguous:
3. Are all types of small companies eligible for the exemption?
No. Audited accounts must be delivered to Companies House if the company falls into any of the following categories:
(a) A parent company or subsidiary undertaking (unless dormant for the period during which it was a subsidiary) except where:
* the group qualifies as a small group or would qualify if all the bodies corporate in the group were companies; and
* the turnover for the whole group is not more than £5.6 million net or £6.72 million gross; and
* the group's combined balance sheet total is not more than £2.8 million net (£3.36 million gross).
This appears to imply that in the case of a subsidiary company, one must consider the size of the group: the worldwide group would not be within the limits. The accepted wisdom that no audit is required presumably implies that only the size of the UK group need to be considered, but I am having difficulty in finding authority for that.
Can anyone help?
- Buying a company for £20,000 from owner how it works? 1,066 13
- Profit split /Rent 109 3
- Is it possible and what should be done? 211 3
- Unhappy client over fees 1,479 35
- Capital Gains Tax and Enhancement 87 2
- Do HMRC impose harsher penalties on unrepresented taxpayers? 228 3
- Accounting software for investment holding company 198 2
- Disposal of freehold from Ltd Co to another Ltd in a newly formed group 97 1
- Is a Business Bank Account compulsory for a sole trader? 254 5
- Multi user accounting software 150 2
- S455 tax on existing loans on becoming a participator 124 1
- Does QuickBooks Online have aged debtors and creditors reports? 232 2
- Remortgage costs on redidential lettings 209 2
- Self-employed: claiming expenses initially paid by somebody else 420 11
- do i need an online accounting software 564 7
- VAT DIY self build shceme 126 1
- COMPANIES HOUSE - DOWN LOAD FREE ACCOUNTS 699 17
- Employee expenses & benefits - bringing myself up to date 261 1
- Backdating Partnership registration to 14/15 1,041 16
- Can you claim part of the AIA and WDAs on the remainder 213 2
- NHS finance professionals 794
- Foreign Pension Contribution 479
- Pre Season Invoice dated September how do you treat the VAT as not due until May 16 474
- SWAT AML v Anti Money Laundering Compliance Plus (AMLCP) 408
- Management reporting dashboards and cloud accounting 376
- IFA income recognition & reporting 282
- Are subsistence claims firmly attached to the 24 month rule ? 266
- Form P55 in year tax repayment claim for non-resident 257
- FRM claim for travel to training course 214
- When is sale recognised in an agency who receives commission? 213