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Care Homes: Audit

Asked by Liz JarvisLiberal DemocratDepartment for Business and TradeTabled Answered 20 October 2025UIN 78897

The question

To ask the Secretary of State for Business and Trade, whether his Department plans to review the exemption of small care companies from submitting audited accounts under section 477 of the Companies Act 2006.

Answered by Blair McDougall

The Government has delivered legislation which has increased the monetary size thresholds for micro-entities, small, medium-sized and large companies. This has extended access to the small companies audit exemption to 14,000 companies reclassified from being medium-sized to small. Together, the measures in this legislation are already saving UK businesses £240 million per year.

The Government is continuing to work to identify reforms to company reporting and audit requirements to reduce the administrative burden of regulation. We will consult further in due course.

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