8.1 A company is small in relation to a financial year if the small companies regime, as defined in section 381, applies to that financial year. A company is medium-sized in relation to a financial year if it qualifies as medium-sized in relation to that year under section 465 and is not excluded from being medium-sized under section 467(1) (Regulations Reg 3(2)). In addition to meeting the size criteria, it is important to consider whether the company might be ineligible for the exemption because it falls within one of the ineligible categories eg, members of a group containing public companies and certain financial services companies cannot qualify as small or medium-sized companies.
Q9. What do SMEs have to disclose?9.1 As a result of the amendments made to the Regulations in 2016, small companies are not required to disclose auditor remuneration. This applied to accounting periods starting on or after 1 January 2016.
9.2 In the accounts required to be sent to members under section 423, medium-sized companies are required to disclose only the fee receivable by their auditor (including any benefits in kind) for the audit of those accounts (Regulation 4). This is the case whether those accounts are individual or group accounts. For medium-sized companies, the amount disclosed excludes any services provided by associates of the auditor (see paragraph 10.1 below).