---
title: "Company Size Thresholds are changing from April 2025: Will this affect your company?"
description: Company size thresholds are increasing from April 2025, affecting reporting rules for businesses and LLPs. See how these changes impact you
---

[Arnold Hill Blog: Insights and Advice for Businesses and Individuals ](https://www.arnoldhill.co.uk/blog)

# [Company Size Thresholds are changing from April 2025: Will this affect your company?](https://www.arnoldhill.co.uk/blog/changetocompanysizethresholds)

 Written by [Arnold Hill](https://www.arnoldhill.co.uk/blog/author/arnold-hill) | Apr 1, 2025 11:37:29 AM

From April 2025, new regulations will increase company size thresholds and eliminate certain requirements from the Directors’ Report.

The government has introduced [new legislation ](https://www.legislation.gov.uk/uksi/2024/1303/contents/made)to raise the monetary size thresholds for micro, small, and medium-sized entities. The aim of the uplift is to simplify reporting requirements, reduce reporting complexity for companies, and adjust for inflation since the thresholds were last set in 2013.

**Who Will the New Thresholds Apply To?**

- Micro entities
- Small entities
- Medium entities
- LLPs

It is important to note the increased thresholds will also apply to limited liability partnerships (LLPs) via amendments to the regulations which govern them.

### What are the new monetary size thresholds, effective April 2025?

The below table outlines the new thresholds effective April 2025. These thresholds will apply for a financial year if any two of the three criteria are met.

The legislation introduces a transitional provision for the “**two-year consecutive rule**.” When determining company size for financial years beginning on or after 6 April 2025, companies can assume the new thresholds were in place for the previous year. This look-back provision applies solely to the two-year rule, allowing companies and LLPs to benefit from the threshold increase as soon as the legislation takes effect.

### Directors’ Report requirements – what is changing?

To further reduce the UK’s regulatory burden, particularly in non-financial reporting, the new regulations eliminate several outdated or overlapping requirements from the Directors’ Report.

If you are a large or medium-sized entity, you will no longer need to include information on:

- Financial instruments;
- Significant events occurring after the financial year-end;
- Expected future developments;
- Research and development;
- Overseas branches;
- Employment of disabled people (this requirement is also being removed for small entities);
- Employee engagement; and
- Engagement with customers and suppliers.

For more details on these changes, refer to the government’s [explanatory memorandum.](https://www.legislation.gov.uk/uksi/2024/1303/memorandum/contents)

### Coming Soon: Further Measures 

Further measures will be introduced through separate secondary legislation and this is expected to be announced early 2026. These measures are being introduced to eliminate overlapping EU-origin reporting requirements from the Directors’ Remuneration Report, in addition to addressing technical issues in the audit regulatory framework.

### About Arnold Hill & Co LLP 

Arnold Hill & Co LLP is an accountancy and tax firm who have been delivering tailored accountancy services for over a century. Based in the heart of London, the firm is built on strong, lasting relationships and combine tradition with a forward thinking approach to meet the evolving needs of clients, both across the UK and internationally. The firm advise a range of clients ranging from UHNWI’s, family offices and entrepreneurs to growing businesses and multinational groups.

Leanne Konopka - Partner 

 

 

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