Audit on partnership firm

This discussion explores whether a partnership firm, which received a £300,000 grant in 2020 and has since spent it on a project, is legally required to undergo an audit. The firm has no GST number, sales, or cash deposits, with expenses paid via online transfers and cash vouchers. The user also possesses a firm PAN but has not used it. The prevailing guidance suggests that a tax audit for a partnership firm is mandatory only if turnover or gross receipts exceed £1 crore for businesses or £25 lakh for professions, indicating an audit may not be compulsory in this specific scenario.