Quick question regarding company size

[FunctionCall]

No doubt the definition of "small company" will be so complicated and open to interpretation that no small company will take the risk of calling themselves that...

[jamesbrown]

In any case, this company size threshold won't last long.

I reckon April 2021, when everything is working "as expected" for medium and large companies (i.e. when CEST has been fully unhinged from reality).

[Yorkie62]

From the governments own website
Mid-sized businesses - GOV.UK


The Mid-sized Businesses Growth Review uses a definition based on turnover, £25m-£500m per year. £25m is the upper bound of the SME turnover definition, whilst £500m was chosen as a cut-off point for these ‘smaller’ large firms. Note however, that the Companies’ Act SME definition requires that two out of three characteristics are met – turnover (less than £25m), employees (less than 250), and gross assets (less than £12.5m). Therefore there is likely to be some overlap with SMEs in the MSB population that we are looking at in this analysis. BIS estimates that over half of MSBs also have fewer than 250 employees.

OR

Small and Medium Enterprise (SME) - Definitions

Section 248 of the Companies Act of 1985 states that a company is "small" if it satisfies at least two of the following criteria:
•a turnover of not more than £2.8 million;
•a balance sheet total of not more than £1.4 million;
•not more than 50 employees

A medium sized company must satisfy at least two of the following criteria:
•a turnover of not more than £11.2 million;
•a balance sheet total of not more than £5.6 million;
•not more than 250 employees

For statistical purposes, the Department of Trade and Industry usually used the following definitions:
•micro firm: 0 - 9 employees
•small firm: 0 - 49 employees (includes micro)
•medium firm: 50 - 249 employees
•large firm: over 250 employees

However, in practice, schemes which are nominally targeted at small firms adopt a variety of working definition depending on their particular objectives.

[jamesbrown]

Errr no need to guess it's been mentioned a few times on here and is in black and white in the Consultation report. They will use the guidance from the 2006 Companies Act which states in very clear terms

Small Company =

1) Less than £10m turnover a year
2) Less than 50 employees
3) Less than £5.1m on balance sheet (which I assume means profit)

This, with the slight caveat (and I forget the precise language used in the consultation response) that it was going to be "based on" this, so I think they are leaving some room for the detailed consultation to suggest that it is not necessarily *precisely* this.

[Guvernator]

Errr no need to guess it's been mentioned a few times on here and is in black and white in the Consultation report. They will use the guidance from the 2006 Companies Act which states in very clear terms

Small Company =

1) Less than £10m turnover a year
2) Less than 50 employees
3) Less than £5.1m on balance sheet (which I assume means profit)

[oilboil]

As NLUK says, we don't know yet.

But I doubt those numbers.
More like:
Small <250
Medium 250 - 5,000
Large > 5,000

I would also suspect some revenue/profit distinction as well as just a pure employee number; some of the richest companies in the UK have very few employees and would be classed as a large business under any other method of determining size

As others have said - too early to tell, and second guessing or worrying about it today won't change the outcome anyway

[Lance]

I've been looking around recently just need to clarify with the recent proposals that have come in via the budget:

Company Size:

Small (10-49 employees)
Medium (50-249 employees)
Large (250+ employees)

Is this correct or or am I wrong?

As NLUK says, we don't know yet.

But I doubt those numbers.
More like:
Small <250
Medium 250 - 5,000
Large > 5,000

[northernladuk]

I've been looking around recently just need to clarify with the recent proposals that have come in via the budget:

Company Size:

Small (10-49 employees)
Medium (50-249 employees)
Large (250+ employees)

Is this correct or or am I wrong?

It's a year off and is very much likely to change before then.

[BlackCountryContractor]

I've been looking around recently just need to clarify with the recent proposals that have come in via the budget:

Company Size:

Small (10-49 employees)
Medium (50-249 employees)
Large (250+ employees)

Is this correct or or am I wrong?