The Government's legislative programme for the next session of Parliament included a new bill on company accounting and audit procedures, which suggests raising the level at which companies need to be audited from the current £1 million turnover, to £6.5 million. Matthew Carrington, chief executive of the Retail Motor Industry Federation (RMI), said this will be great news for small businesses. By increasing the level, many thousands of businesses in the retail motor sector would be exempted from the requirement of being audited. This could also greatly reduce accounting bills for smaller companies.”
Small incorporated motor business with turnovers between the old and new audit thresholds may be saved approximately £1000-£3000 per annum, while small unincorporated businesses with similar turnovers will find it more attractive to incorporate under the new provision.