Definitions for "Small Company"
companies satisfying two of three criteria, namely: Turnover not exceeding £2.8 million; Balance Sheet Total (net worth) not exceeding £1.4 million; and number of employees not exceeding 50. An abbreviated Balance Sheet is required but no profit and loss account needs to be filed. It must be remembered that just because a company qualifies for "Small" company status does not mean that they must file "Small" accounts - they can and often do file "Full" accounts.
For the purposes of considering whether a company is eligible to obtain a moratorium, providing protection from creditors taking enforcement action, whilst a CVA proposal is considered, the company must be able to satisfy two of the following three criteria: Annual turnover not more than £5.6m. Balance sheet total not more than £2.8m. Number of employees not more than 50
The definition of a small company is found in Section 247 Companies Act 1985 (as amended). The reference is used in relation to exemptions from accounting requirements and for several corporation tax measures. To qualify two or more of the following conditions must be met:- 1. Turnover not more than £2.8m 2. Assets not more than £1.4m 3. No more than 50 employees. This test applies in the financial year in qustion or the previous year. Group companies also qualify using aggregate figures. To qualify two or more of the following conditions must be met:- 1. Aggregate turnover not more than £2.8m net (or £3.36m gross) 2. Aggregate assets not more than £1.4m net (or £1.68m gross) 3. No more than 50 employees in total.