AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Most small UK private companies do not need an audit. For financial years starting on or after 6 April 2025, a company is exempt if it meets at least 2 of 3 conditions: turnover up to £15m, assets up to £7.5m, and 50 or fewer employees on average. Some companies must be audited anyway, including public companies, most subsidiaries without an exemption, banks and e-money issuers, and shareholders with 10% or more can demand one.
The thresholds
GOV.UK's guidance on audit exemptions (updated 14 October 2026) gives two sets of figures, depending on when your financial year starts. A company needs to meet at least 2 of the 3 conditions.
| Condition | Years starting on or after 6 April 2025 | Years starting 1 Jan 2016 to 5 April 2025 |
|---|---|---|
| Annual turnover | Up to £15m | Up to £10.2m |
| Assets (balance sheet total) | Up to £7.5m | Up to £5.1m |
| Average number of employees | 50 or fewer | 50 or fewer |
For most founders running a consultancy, shop, care agency or tech start-up, these limits are far above where they are. Exemption from audit is not exemption from accounts: you still prepare and file annual accounts with Companies House and HMRC. See first UK company accounts: deadlines and penalties.
Worked example
Example: Ibrahim's company has a year starting 1 July 2025, turnover of £16m, assets of £3m and 40 staff. It fails the turnover test but meets the assets and employees tests, so it meets 2 of 3 and is exempt, unless one of the exceptions below applies. If the same company had turnover of £16m, assets of £8m and 40 staff, it would meet only one condition and would need an audit.
Companies that must be audited anyway
GOV.UK says a company must have an audit if, at any time in the year, it was:
- a public company (unless dormant);
- a subsidiary company, unless it qualifies for an exemption;
- an authorised insurance company or carrying out insurance market activity;
- a bank, or involved in banking;
- an e-money issuer;
- a MiFID investment firm or a UCITS management company;
- a company whose shares have been traded on a regulated market;
- a funder of a master trust pension scheme, a special register body, or a pensions or labour relations body.
Your own articles of association can also require an audit, so read them, especially if you used a lawyer's template or bought an existing company.
Owned by a Nigerian parent?
A UK company owned by a Nigerian company is a subsidiary. GOV.UK says subsidiaries must be audited unless they qualify for an exemption. The best-known one, in section 479A of the Companies Act 2006, needs every member to agree, the parent to guarantee the subsidiary's liabilities under section 479C and to include it in consolidated accounts, and it requires the parent to be established under the law of "any part of the United Kingdom". A UK company owned directly by a Nigerian company therefore cannot use that route; whether any other exemption fits your group is a question for your accountant. If your Nigerian group is building a UK arm, plan for this from the start; see registering a UK subsidiary of a Nigerian company. Group accounts in Nigeria may also need audited figures from the UK subsidiary regardless.
Shareholders can demand an audit
Shareholders holding at least 10% of the shares, by number or value, alone or together, can require an audit. The request must be in writing, sent to the registered office, and arrive at least one month before the end of the financial year. This matters where a co-founder in Nigeria or an investor holds a minority stake and wants independent assurance; see shareholder agreements with a co-founder in Nigeria.
Claiming the exemption
An exempt company puts a statement on its balance sheet that it was entitled to exemption from audit under section 477 of the Companies Act 2006 for the year. Your accountant normally adds this when preparing the accounts. Dormant companies have their own exemption; see what a dormant company still has to file.
Should you have one anyway?
Some exempt companies choose a voluntary audit or a lighter review because a lender, investor, large client or a Nigerian bank asks for audited accounts. If you plan to raise money, bid for public contracts or use UK accounts to support a Nigerian application, ask the other party what they accept before your year end, so an auditor can be appointed in time.
Where Pryme fits
Clean records make any review cheaper. Business accounts include a Finance agent that prepares reconciliations and categorises transactions for a person to approve, and every action is recorded. Verifiable statements can be generated through receipts and statements, built with VerifyDoc.ai.
Questions people ask
What are the audit exemption thresholds in the UK from 2025?
For years starting on or after 6 April 2025: turnover up to £15m, assets up to £7.5m and 50 or fewer employees. A company must meet at least 2 of the 3.
Does a subsidiary of a Nigerian company need an audit?
Often yes. GOV.UK says subsidiaries must be audited unless they qualify for an exemption, and the parent-guarantee exemption in section 479A needs a parent established under UK law.
Can a shareholder force an audit?
Yes. Shareholders with at least 10% of shares can require one in writing, arriving at the registered office at least one month before the year end.
Do small companies still file accounts if they skip the audit?
Yes. Audit exemption does not remove the duty to prepare and file annual accounts.
Sources
- GOV.UK: Audit exemptions for private limited companies (updated 14 Oct 2026) · accessed Oct 2026
- legislation.gov.uk: Companies Act 2006, section 479A (subsidiary audit exemption) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.