(1) A company qualifies as a micro-entity in relation to its first financial year if the qualifying conditions are met in that year.
(2) Subject to subsection (3), a company qualifies as a micro-entity in relation to a subsequent financial year if the qualifying conditions are met in that year.
(3) 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 micro-entity only if it occurs in two consecutive financial years.
(4) 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 £632,000 |
|
2. Balance sheet total |
Not more than £316,000 |
|
3. Number of employees |
Not more than 10 |
(5) 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.
(6) The balance sheet total means the aggregat
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