New rules that will exempt more than 100,000 small companies from the requirement to have an audit may raise tax issues, Baker Tilly warned.
The new audit threshold rules, which come into effect on October 1 and were announced by the Department of Business Innovation and Skills (BIS) earlier in September, mean that small businesses will not need to subject their accounts to an audit if they meet two out of the three qualifying criteria for small company accounts:
- Fewer than 50 employees
- Balance sheet total: no more than £3.26m
- Turnover below £6.5m.
The extension of the audit exemption (which BIS reckons will apply to more than 100,000 companies) was welcomed by business groups. However, Baker Tilly tax manage...