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Company size limits

Is the Gross/Net turnover limit an 'either/or'?

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Three companies in a group. Rounding off the numbers a little, but broadly they are right:
Company A (parent) - Turnover £8m (SMALL)
Gross assets - £7m (MEDIUM)
Staff - 42 (SMALL)
Size - SMALL

Company B - Turnover £2m (SMALL)
Gross assets - £1m (SMALL)
Staff - 1 (SMALL)

Company C - Turnover £0.3m (SMALL)
Gross assets - £0.2m (SMALL)
Staff - 1 (SMALL)

The group is:
Turnover - £10.3m (?????)
Gross assets - £8.2m (MEDIUM)
Staff - 44 (SMALL)

I therefore say, use the better of £10.2m or £12.2m and therefore group turnover makes them small, but another staff member is doubting me.
There is some intragroup sales, but it is very low, possibly less than the £100k I need to settle the matter.

Is the group medium or small please?

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By thevaliant
13th Sep 2019 13:31

Answering my own question, but I think it's small. Section 383 Companies Act, subsection 6:

(6)In relation to the aggregate figures for turnover and balance sheet total—
“net” means after any set-offs and other adjustments made to eliminate group transactions—
(a)in the case of Companies Act accounts, in accordance with regulations under section 404,
(b)in the case of IAS accounts, in accordance with international accounting standards; and
“gross” means without those set-offs and other adjustments.
A company may satisfy any relevant requirement on the basis of either the net or the gross figure.

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By johnt27
16th Sep 2019 15:01

The size limits for groups (gross/net) are interchangeable in so far as you that if your gross sales exceeds the limit but if you strip out intercompany sales and fall below the net limits you could use this to retain small/medium status or vice versa.

In your example you breach the net limits (£10.3m less £100k intra-group sales) but remain under the gross limit so qualify as small.

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