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Medium-sized LLP accounts


1. What is a medium-sized LLP?

As with a small LLP, a medium-sized LLP is determined by its turnover, balance sheet total (meaning the total of the assets) and average number of employees.

A medium-sized LLP can prepare accounts according to special provisions applicable to medium-sized LLPs. It can also choose to submit reduced information to Companies House.

Certain financial services LLPs, and LLPs whose securities are admitted to trading on an EEA regulated market, cannot qualify as medium-sized LLPs. Similarly, LLPs which are part of a group which has members who are public companies or certain financial services LLPs or companies cannot qualify as medium-sized for accounting purposes.

2. What are the conditions to qualify as a medium-sized LLP?

To be a medium-sized LLP, you must meet at least two of the following conditions:

annual turnover must be no more than £25.9 million;
the balance sheet total must be no more than £12.9 million;
the average number of employees must be no more than 250
If it is not the LLPs first accounting period, it must have qualified as ‘medium-sized’ in the period before.

3. Are there any LLPs excluded from being treated as medium-sized?

Yes. If an LLP is, or was at any time during the financial year, one of the following it is excluded from being treated as a medium-sized LLP:

an LLP whose securities are admitted to trading on a regulated market in an EEA State,
an LLP that:
-has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity, or
-carries on insurance market activity, or
a member of an ineligible group.
A group is ineligible if any of its members is:

a public company
a body corporate (other than a company) whose shares are admitted to trading on a regulated market,
a person (other than a small company or small LLP) who has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on a regulated activity,
a small company or small LLP that is an authorised insurance company, a banking company or banking LLP, an e-money issuer, a MiFID (i.e Markets in Financial Instruments Directive) investment firm or a UCITS(i.e. Undertakings for Collective Investment in Transferable Securities) management company, or
a person who carries on insurance market activity.


4. Can an LLP qualify as a medium-sized LLP every year?

Generally, an LLP qualifies as ‘medium-sized’ in its first accounting period if it fulfils the conditions in that period. In any subsequent period, an LLP must fulfil the conditions in that period and the period before.

However if an LLP which qualified as medium-sized in one period no longer meets the criteria for medium-sized in the next period, it may continue to claim the exemptions available for the next period. If the LLP then reverts back to being medium-sized by meeting the criteria the exemption will continue uninterrupted.

5. What will medium-sized LLP accounts include?

Medium-sized accounts must include:

a profit and loss account;
a balance sheet, signed by a designated member;
notes to the accounts; and
group accounts (if appropriate).
And be accompanied by an auditor’s report.

6. What are the exemptions available for medium-sized LLPs?

Medium-sized LLPs preparing accounts under the Companies Act as applied to LLPs (but not IAS accounts) may omit disclosures about compliance with accounting standards and related party transactions from the accounts they send to their members. Also medium-sized LLPs preparing accounts that are not IAS accounts may choose to file a slightly reduced version of the profit and loss account. Further information may be found in the Large and Medium-sized Limited Liability Partnerships (Accounts) Regulations 2008.

7. What does a medium-sized LLP have to deliver to Companies House?

Abbreviated accounts of a medium-sized LLP must include:

the abbreviated profit and loss account (this must be full if preparing IAS accounts);
the full balance sheet, signed by a designated member; and
notes to the accounts.
And be accompanied by a special auditor’s report.

The special auditor's report should state that in the auditor's opinion the LLP is entitled to deliver abbreviated accounts in accordance with section 445(3) of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit)(Application of Companies Act 2006) Regulations 2008) and that they are properly prepared in accordance with regulation 4 of The Large and Medium-sized Limited Liability Partnerships (Accounts) Regulations 2008).

The balance sheet must contain a statement, above the designated member’s signature, that the accounts have been prepared in accordance with the special provisions of section 445(3) Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit)(Application of Companies Act 2006) Regulations 2008) in regard to medium-sized LLPs.

8. Are there special rules for medium-sized groups?

No. A medium-sized parent LLP must prepare group accounts and submit them to Companies House.