Under existing rules, some societies can choose to disapply the requirement to appoint an auditor and prepare a less onerous audit report if they meet all of the following conditions:

• Turnover less than £5.6m
• Assets less than £2.8m
• Their members have passed a resolution to disapply the requirement
• They are not on the list of exempted societies that cannot disapply this requirement.

HM Treasury is proposing to increase the turnover threshold to £10.2m and the assets threshold to £5.1m which would bring those into line with the equivalent thresholds for companies. 

The change in the thresholds will not, however, remove the requirement for members of a co-operative or community benefit society to pass a resolution to disapply the audit requirement if they wish to take advantage of it.  They must also not be on the list of exempted societies that cannot disapply the requirement.   

This change will only apply to co-operatives and community benefit societies.  The current audit requirements for credit unions will remain. 

Comments on the proposals are requested by 22 September 2017.

The press release and consultation are available on HM Treasury’s website

Update 05 December 2017

HM Treasury has published responses from the consultation.  The majority of responses were supportive and the government will be going ahead with the change to audit thresholds.  The responses document is available on HM Treasury's website here.