As of 6 April 2025 the government has changed the thresholds that define what a small company is. This is particularly important if you deal with off-payroll workers.
From 6 April 2025, the government thresholds that determine if a company is classified as ‘small’ will change. This means that for accounting periods beginning on or after this date a private company or organisation will now be considered small if two out of the three following conditions are met:
- turnover of not more than £15 million — increased from £10.2 million
- balance sheet total of not more than £7.5 million — increased from £5.1 million
- monthly average number of employees of not more than 50 — no change
A large or medium-sized client is responsible for determining the employment status of any worker supplying their services through an intermediary — usually a personal service company.
The threshold changes will have no practical impact for OPW until 6 April 2026, at the earliest, because a company’s size is determined by reference to previous years. Estimates on the number of additional companies will be classified as small instead of medium ragnge from 10,000 to 14,000.