(1) A company qualifies as small in relation to its first financial year if the qualifying conditions are met in that year.
(1A) Subject to subsection (2), a company qualifies as small in relation to a subsequent financial year if the qualifying conditions are met in that year.
(2) In relation to a subsequent financial year, where on its balance sheet date a company meets or ceases to meet the qualifying conditions, that affects its qualification as a small company only if it occurs in two consecutive financial years.
(3) The qualifying conditions are met by a company in a year in which it satisfies two or more of the following requirements -
|
1. Turnover |
Not more than £10.2 million |
|
2. Balance sheet total |
Not more than £5.1 million |
|
3. Number of employees |
Not more than 50 |
(4) For a period that is a company's financial year but not in fact a year the maximum figures for turnover must be proportionately adjusted.
(5) The balance sheet total means the aggregate of th
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