From April 2025, HMRC updated the thresholds that determine the size of your business. And while it might sound like a slight shift on paper, it could significantly impact what you need to report, how you’re taxed, and what compliance rules you must follow.
Here’s the new breakdown:
- Micro business: Turnover up to £1 million
- Small business: Up to £15 million
- Medium business: Up to £54 million
If your turnover has increased or changed in the past year, your business falls into a different category. And that could mean new reporting requirements, tighter deadlines, and even different expectations from HMRC.
It’s not just about ticking boxes, either. Where your business sits within these new brackets can affect everything from tax planning opportunities and eligibility for certain reliefs to the level of financial disclosure required in your accounts.
These updates are part of a broader shift to increase transparency and modernise reporting standards across UK businesses. But we know changes like these can feel overwhelming, especially if you’re already busy running your business day to day.
Not sure where your business stands now or what changes you need to make?
We’re here to walk you through it. Let’s check your current position and make sure you’re still on the right track with no nasty surprises down the line.
