Glossary

Definition of a medium sized company for accounting purposes

Clifford McDowell

Definition of a Medium-Sized Company for Accounting Purposes

You need to know the definition of a medium-sized company when it comes to accounting and filing documents with Companies House. There are three size classifications for registered companies, Small, Medium, and Large (Any company exceeding the criteria set for Medium is classified as Large). Also, the small company category has a further sub-classification reserved for tiny organisations, these are labelled as ‘micro-entity‘.

What is a Medium-Sized Company?

To fit the Companies House definition of medium-sized company the company must meet at least two of the following criteria:

  • Annual turnover amount must be under £36 million
  • Average number of employees must be less than 250 people
  • Balance sheet total cannot exceed £18 million

However, certain financial service companies and public companies can’t qualify as medium-sized companies regardless of size, these are required to adhere to their own regulatory requirements as applied by Companies House. Companies that are part of a larger group are also excluded if this group includes entities which are financial service companies or public companies.

What Kind of Company is Excluded from the Medium-sized Class?

The following companies are excluded from the medium-sized classification:

  • A public company
  • A body corporate trading shares on a regulated market
  • An individual permitted to carry on a regulated activity under Part 4 of the Financial Services and Markets Act of 2000
  • A small company that is either a banking company, an authorised insurance company, a MiFID (Markets in Financial Instruments Directive) investment firm, an e-money issuer or a UCITS management company (Undertakings for Collective Investment in Transferable Securities)
  • A person who carries out insurance market activities

What Medium-Sized Company Accounts – The Requirements

There are a few things that a medium-sized company accounts should include, and they are:

  • A balance sheet showing the director’s printed name and signature
  • A profit and loss account
  • Group accounts
  • Notes attached to the accounts if appropriate

A medium-sized company should include the following along with the above-listed items:

  • Auditor’s report. This report should have the registered auditor’s name included unless the company claims an exemption from the audit.
  • Director’s report. This report should include a strategic report or a business review that clearly shows the printed name of the director or approving secretary.

What a Medium-Sized Company Must Delivery to Companies House

  • Profit and loss account – can be abbreviated (has to be full if the company prepares IAS accounts)
  • Full and complete balance sheet that shows the director’s signature and printed name
  • Special report from a registered auditor, showing the registered auditor’s printed name
  • Director’s report that shows the printed name of the director or approving secretary
  • Notes attached to the accounts

The special auditor’s report should also contain a few things. First, it should have the auditor’s opinion that states that the auditor believes that the company is entitled to deliver the abbreviated accounts to stay in accordance with section 445(3) of the Companies Act of 2006. Also, the report should state that the company has properly prepared the abbreviated accounts in accordance with the Secretary of State’s regulations.

A medium-sized company is also required to deliver a balance sheet and a directors’ report if this is deemed appropriate. These reports have to contain a statement that clearly says that the company has prepared all of the accounts in accordance with the special provisions of section 445(3) Companies act of 2006 in regard to medium-sized companies.

In summary, the Definition of a Small Company is:

  • Annual turnover amount must be less than £36 million
  • Average number of employees must be under 250 people
  • Balance sheet total cannot exceed £18 million

Medium-Sized Companies in DoordaBiz:

Doorda holds extensive data on more 12 Million organisations which allows you to easily identify medium companies and add more information. This includes our Regulator Data so you can check to see if the company has been fined or issued a warning, you will also have access to all listed directors and registered charges via DoordaBiz.

You can also garner intelligence on addresses linked to a company via DoordaProperty including business rates and inspection reports. All this data and more is linked to the company number so you can effortlessly see the structure, movements, and activities of a company on many levels.

Stay informed

×

Membership Level

You have selected the Free Level membership level.

The price for membership is £0.00 now.

Create your FREE account for access to this and ongoing data updates.


Account information Already have an account? Log in here

LEAVE THIS BLANK

About You

*
*

Terms and Conditions

1. Acceptance the Use Of Doorda.com Terms and Conditions

Your access to and use of Doorda.com (the Website) , the property of Doorda Ltd (“Doorda”), is subject exclusively to these Terms and Conditions. You will not use the Website for any purpose that is unlawful or prohibited by these Terms and Conditions. By using the Website you are fully accepting these including any disclaimers stated therein . If you do not accept these Terms and Conditions you must immediately stop using the Website.

2. Credit card details

Doorda will never ask for Credit Card details and requests that you do not enter it on any of the forms on the Website

3. Advice

The contents of the Website do not constitute advice and should not be relied upon in making or refraining from making, any decision.

4. Non-Commercial Use

All content on the Website is for non-commercial use only and is issued under the Creative Commons Attribution-Non Commercial 4.0 International Licence .

5. Change of Use

Doorda reserves the right to:

(1) Change or remove (temporarily or permanently) the Website or any part of it without notice and you confirm that Doorda shall not be liable to you for any such change or removal
(2) Change these Terms and Conditions at any time, and your continued use of the Website following any changes shall be deemed to be your acceptance of such change.
and
(3) Discontinue access by any user at any time , such action being entirely at Doorda’s discretion

6. Links to Third Party Websites

The Website may include links to third party websites that are controlled and maintained by others. Any link to other websites is not an endorsement of such websites and you acknowledge and agree that we are not responsible for the content or availability of any such sites.

7. Intellectual Property

7.1 All copyright, trademarks and all other intellectual property rights in the Website and its content (including without limitation the Website design, text, graphics and all software and source codes connected with the Website) are owned by or licensed to Doorda or otherwise used by Doorda as permitted by law.

7.2 In accessing the Website you agree that you will access the content solely for your personal, non-commercial use. None of the content may be downloaded, copied, reproduced, transmitted, stored, sold or distributed without the prior written consent of the copyright holder. This excludes the downloading, copying and/or printing of pages of the Website for personal, non-commercial home use only.

8. Disclaimers and Limitation of Liability

8.1 The Website is provided on an AS IS and AS AVAILABLE basis without any representation or endorsement made and without warranty of any kind whether express or implied, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.

8.2 To the extent permitted by law, Doorda will not be liable for any indirect or consequential loss or damage whatever (including without limitation loss of business, opportunity, data, profits) arising out of or in connection with the use of the Website.

8.3 Doorda makes no warranty that the functionality of the Website will be uninterrupted or error free, that defects will be corrected or that the Website or the server that makes it available are free of viruses or anything else which may be harmful or destructive.

8.4 Nothing in these Terms and Conditions shall be construed so as to exclude or limit the liability of Doorda for death or personal injury as a result of the negligence of Doorda or that of its employees or agents.

9. Indemnity

You agree to indemnify and hold Doorda and its employees and agents harmless from and against all liabilities, legal fees, damages, losses, costs and other expenses in relation to any claims or actions brought against Doorda arising out of any breach by you of these Terms and Conditions or other liabilities arising out of your use of this Website.

10. Severance

If any of these Terms and Conditions should be determined to be invalid, illegal or unenforceable for any reason by any court of competent jurisdiction then such Term or Condition shall be severed and the remaining Terms and Conditions shall survive and remain in full force and effect and continue to be binding and enforceable.

11. Governing Law

These Terms and Conditions shall be governed by and construed in accordance with the laws of England and you hereby submit to the exclusive jurisdiction of the English courts.

Click here to read full terms of use. Your information will be used to log you in to the website and subscribe you to our newsletter when selected. We will only send you relevant information and you can unsubscribe at any time. View our Privacy Policy

Join our mailing list.