Ever felt like you’ve built an empire, only to be told you’re still just a micro business? Ouch. Well, hold onto your spreadsheets because the UK government is shaking up company size thresholds in 2025. Let’s break it down—quick, snappy, and with minimal jargon.
Why the Change?
Because inflation exists and the government is finally acknowledging it. From 6 April 2025, new size classifications will mean some businesses jump from “micro” to “small” or “small” to “medium” without doing a thing—just like magic.
New Size Rules (A.K.A. Where Do You Fit?)
Here’s the new business sizing chart—think of it like a corporate clothing size guide:
| Size | Turnover ≤ | Balance Sheet ≤ | Employees ≤ |
|---|---|---|---|
| Micro | £1 million | £500,000 | 10 |
| Small | £15 million | £7.5 million | 50 |
| Medium | £54 million | £27 million | 250 |
(If you hit 2 out of 3 criteria, that’s your new label—no arguing with the chart!)
What’s in It for You?
- Micro-businesses – Less paperwork, potentially no Director’s Report.
- Small businesses – Bye-bye to audits (maybe) and that hefty Strategic Report.
- Medium businesses – Slightly fewer reporting hoops to jump through.
Bottom line? Less admin. More time to run your business (or have a cuppa).
So, What Now?
- Check your numbers – Where do you fit under the new rules?
- Brace for impact – Your reporting obligations might change.
- Use it to your advantage – Less red tape means more focus on growth.
These changes mean you could officially level up as a business overnight—without even selling an extra thing.
Want the nitty-gritty details? Head over to ICAEW for the full scoop.
For now, take a moment to revel in your potential business glow-up. If you need a marketing glow up, or want to scale, get in touch!
