Does my subsidiary require an audit?

Due to company law changes brought about by Brexit, it is worth noting that a previous audit exemption that was available to the UK subsidiary of an EEA parent company is no longer available for accounting periods commencing on 1 January 2021.

Therefore, UK registered large or medium sized subsidiaries, or small subsidiaries that are not eligible for the small companies’ audit exemption, with an immediate EEA parent will need to have their accounts audited for financial years that begin on or after 1 January 2021.

These subsidiaries should also check whether they will maintain their eligibility for exemption from producing group accounts for financial years beginning on or after 1 January 2021.

Intermediate UK parent companies with an immediate EEA parent may need to produce their own group accounts and file them with Companies House. This is unless they benefit from the exemption by other means – for example, because their EEA parent produces group accounts that are equivalent to those required by UK law.

Author: Chris Morey, Director, Plus Accounting

For more information on this matter or to find out about our Audit and assurance services, please contact Chris Morey on 01273 701200 or email

Any views or opinions represented in this blog are personal, belong solely to the blog owner and do not represent those of Plus Accounting. All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.

Date published: 12 April 2022

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