Companies with turnover less than £250,000 per annum, a balance sheet total under £1.5 million, and less than 50 employees will be able to take advantage of the exemption from 21 February. The exemption has been introduced to reduce the administrative burden of audit requirements on small companies.

Although the exemption allows companies to elect not to have their accounts audited, they will still be required to submit annual accounts as part of their annual return to the Companies Registration Office. The legislation which introduced the exemption also included a safeguard mechanism for company shareholders who can insist on a company's accounts being audited if they have the backing of at least 10% of shareholders.