--- title: When is an Audit required for a company? description: Audit criteria can cover the majority of companies that operate in the UK, depending on their turnover, assets, and the number of staff they employ. image: https://blog.shorts.uk.com/hubfs/Shorts_28-10-23-474.jpg --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [Accountancy Services](https://blog.shorts.uk.com/topic/accountancy-services) # When is an Audit required for a company? Ian Robinson - 22 November 2022 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/Shorts_28-10-23-474.jpg) When it comes to accounting obligations, many owners question when the "right time" is to begin auditing their business. While HMRC outlines specific thresholds and criteria for when a business is required to conduct an Audit, there are other scenarios when a business may benefit from audit services. Learn more with our guide below from the Shorts Audit Services team.   ## When is a business required to do an Audit? An [Audit is essential for companies that meet the criteria set out by the government](https://blog.shorts.uk.com/what-is-an-audit-why-is-it-so-important). These can cover the majority of companies that operate in the UK, depending on their turnover, assets, and the number of staff they employ. ## What is the Audit threshold for a company? From 6 April 2025, the UK’s audit thresholds inch upward, quietly widening the net for growing firms. Companies with financial years starting on or after that date must undergo an annual audit if they meet any two of the following: - Turnover above £15m - Gross assets over £7.5m  - More than 50 employees Those starting earlier (and operating outside a group) face slightly lower benchmarks: £10.2m in turnover, £5.1m in assets, and the same 50-employee threshold.  ## Companies or bodies requiring an Audit regardless of threshold There are also specific company types which must have an Audit for any financial year in which it has been: - A public company (excluding dormant public companies) - A subsidiary - Any corporate body whose shares have been traded within a regulated market - A company working in the insurance market, or an authorised insurance company - A company that issues e-money (electronic money) - A body that deals in pensions or labour relations - A company involved in banking - An organisation whose name appears in the “special register” under the Industrial Relations act 1971 - An organisation that funds a master trust pensions scheme - An investment firm regulated by MiFID (Markets in Financial Instruments Directive) - A company regulated by UCTIS (Undertakings for Collective Investment in Transferable Securities) Companies or bodies which meet any of the above criteria must be audited regardless of whether or not they meet the audit criteria for turnover, assets or people employed. This is why it’s important to seek professional advice from a qualified auditor or legal professional if you are unsure of your audit status. ## When to seek advice on your company audit situation As you can see, the Audit threshold is not obvious for all companies. If your company does not yet conduct an independent Audit, we strongly recommend checking with a qualified auditor or legal professional. It is very important to work with a reputable auditor in order to avoid [audit failure](https://blog.shorts.uk.com/audit-failure-why-it-happens-and-how-to-prevent-it). The [Shorts Audit Promise](https://www.shorts.uk.com/audit/shorts-audit-promise) means clients receive provides meaningful advice at a strategic level, as well as assurance and advice relating to compliance with regulations. Speak to our team today if you require assistance.   ![author](https://blog.shorts.uk.com/hubfs/Ian%20Robinson%20600x600%20for%20proposal.jpg) #### Ian Robinson Ian Robinson is a Fellow of the Institute of Chartered Accountants in England & Wales with over 30 years of professional experience spanning Big Four, mid‑tier, and specialist firms. Having joined Shorts in 2015, Ian has since progressed into the role of Senior Audit Quality, Technical and Training Lead, overseeing audit quality, shaping the firm’s training strategy, and guiding technical matters for the Corporate Team. Drawing on his experience at PwC, Grant Thornton, and two years working in Australia, as well as his involvement with the ICAEW’s National Technical Advisory Committee and Praxity Alliance networks, Ian plays a key role in supporting Shorts’ continued commitment to excellence in audit quality. [View my articles](https://blog.shorts.uk.com/author/ian-robinson) Tags: [Accountancy Services](https://blog.shorts.uk.com/topic/accountancy-services), [Audit](https://blog.shorts.uk.com/topic/audit) Share this on - - - [Questions? Get in touch with us](https://www.shorts.uk.com/contact/) ###### Tax Saving Guide 2026-27 Written especially for entrepreneurs and owner-managed businesses, this guide is full of planning ideas and tax risks to avoid. [ Download now ](https://info.shorts.uk.com/en-gb/tax-saving-guide) ![Tax saving guide 2026-27](https://blog.shorts.uk.com/hs-fs/hubfs/Tax%20saving%20guide%202024.jpg?width=375&height=465&name=Tax%20saving%20guide%202024.jpg) ###### Related articles ##### [Statutory Audit: definition, exemptions and benefits](https://blog.shorts.uk.com/statutory-audit-guide) ##### [Audit failure: why it happens and how to prevent it](https://blog.shorts.uk.com/audit-failure-why-it-happens-and-how-to-prevent-it) ##### [What is an Audit and why is it so important?](https://blog.shorts.uk.com/what-is-an-audit-why-is-it-so-important) ##### [Companies House fees are changing](https://blog.shorts.uk.com/companies-house-fees-are-changing) ###### Latest articles [How to separate a business through a demerger](https://blog.shorts.uk.com/how-to-separate-a-business-through-a-demerger) [A case of aggressive tax avoidance: Glasgow Rangers Football Club](https://blog.shorts.uk.com/aggressive-tax-avoidance-affect-you) [What is VAT? - Complete Guide (Updated for 2025/26)](https://blog.shorts.uk.com/what-is-vat) [Ashgate Hospice Sparkle Night Walk 2026](https://blog.shorts.uk.com/ashgate-hospice-sparkle-night-walk-2026) [Stocktaking guide for UK businesses](https://blog.shorts.uk.com/stocktaking-guide-for-uk-businesses) [Supporting the Chatsworth Cascade for future generations](https://blog.shorts.uk.com/supporting-the-chatsworth-cascade-for-future-generations) [Deal of the Year win at Insider Dealmakers Awards 2026](https://blog.shorts.uk.com/deal-of-the-year-win-at-insider-dealmakers-awards-2026) [Football shirt Wednesday: Backing England in style](https://blog.shorts.uk.com/football-shirt-wednesday-backing-england-in-style) [Understanding lifetime trusts: the basics](https://blog.shorts.uk.com/understanding-lifetime-trusts-the-basics) [Close company directors face new HMRC detail requirements in 2026](https://blog.shorts.uk.com/close-company-directors-face-new-hmrc-detail-requirements-in-2026) #### About Us Use this little footer to reinforce your message about who you are and why people love working with you. 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