SAOG11500 - What is a qualifying company: determination must be made for each financial year

The Senior Accounting Officer (SAO) provisions only apply to a qualifying company. The responsible officers of a company must determine whether it is a qualifying company. For a company to be a qualifying company for a financial year it must meet the conditions set out in SAOG11210.

It is possible for a company to be a qualifying company in one financial year, not a qualifying company the year after, then a qualifying company again the year after that and so on. The fact that it was a qualifying company in say the year ended 30th June 2016 is not relevant to the determination for the financial year ended 30th June 2017.

For example, in the case of a non-grouped company X Ltd that is UK incorporated and with a balance sheet total below 拢2 billion in each of the following financial years the turnover and the company鈥檚 qualifying status is as follows:

Financial year ended Turnover Is the company a qualifying company for the year?
31 December 2009 拢220 million No. The SAO provisions do not apply to this financial year because it did not begin on or after 21 July 2009. You do not therefore need to know the company鈥檚 turnover in the financial year ended 31 December 2008.
31 December 2010 拢180 million Yes. X Ltd is a qualifying company for the financial year ended 31 December 2010 because it satisfies the turnover condition: the turnover in its preceding financial year (拢220 million) was more than 拢200 million. So the SAO provisions apply to X Ltd for the 2010 financial year.
31 December 2011 拢250 million No. X Ltd is not a qualifying company for the financial year ended 31 December 2011 because it does not satisfy the turnover condition: the turnover in its preceding financial year (拢180 million) was not more than 拢200 million. So the SAO provisions do not apply to X Ltd for the 2011 financial year.
31 December 2012 拢300 million Yes. X Ltd is a qualifying company for the financial year ended 31 December 2012 because it satisfies the turnover condition: the turnover in its preceding financial year (拢250 million) was more than 拢200 million. So the SAO provisions apply to X Ltd for the 2012 financial year.