Audit1When you look at a company's filed accounts, it is natural to ask whether they have been audited. For many small UK companies the answer is no, and that is permitted. This article explains what the official guidance says about small companies and audit exemption, and what that does and does not tell you. It is general information only. Audit1 is not a statutory audit, is not a regulated assurance service and is not a substitute for professional verification.
What counts as a small company?
GOV.UK says a company is small if it meets any two of three conditions: turnover of £15 million or less, £7.5 million or less on its balance sheet, and 50 employees or fewer. A company is a micro-entity if it meets any two of these: turnover of £1 million or less, £500,000 or less on its balance sheet, and 10 employees or fewer. Thresholds can change, so the current GOV.UK page is the place to confirm them.
What is the audit exemption?
According to GOV.UK, small companies can use an exemption so that their accounts do not need to be audited. The page says micro-entities can benefit from the same exemptions available to small companies, and that dormant companies that qualify as small do not need an audit either.
The guidance also notes that small companies can choose whether to send Companies House a copy of the director's report and the profit and loss account, and can send abridged accounts, provided all company members agree to that.
Exempt does not mean unfiled
An exemption from audit does not mean an exemption from filing. GOV.UK states that small companies and micro-entities must still send statutory accounts to their members, and to HMRC as part of the Company Tax Return. So an unaudited set of accounts is still a formal statutory document, prepared and approved by the company's directors.
What an unaudited set of accounts cannot tell you
An audit is an independent examination carried out by a registered auditor. If accounts are filed under the audit exemption, no such examination has taken place, and nothing in the filing itself provides independent assurance about the figures. That does not mean the figures are wrong. It means the reader should avoid treating them as independently checked.
Reading filed accounts sensibly
A few habits help when you read a small company's filed accounts. Check what type of accounts they are and which exemptions are claimed. Look at the dates, because old accounts say little about today. Compare the figures across years where you can. Treat anything you cannot explain as a question to ask, not a conclusion to draw.
Where Audit1 fits
Public registers are a useful starting point for understanding a UK company, but they are only a starting point. Audit1 is intended to help people find and understand public company information. It does not carry out audits, and it cannot confirm that a company's figures are right. If a decision matters, such as lending, investing or entering a significant contract, seek professional advice and verify the facts directly.
Source: GOV.UK, "Prepare annual accounts for a private limited company" (https://gov.uk/annual-accounts/microentities-small-and-dormant-companies), read 15 October 2026. Thresholds and rules change; please check the official page. General information only.