Definition
Small company accounts are annual accounts prepared under the small companies regime, normally using the accounting standard FRS 102 Section 1A. For financial years starting on or after 6 April 2025, a company is small if it meets at least two of three limits: turnover of £15 million or less, a balance sheet total of £7.5 million or less, and 50 or fewer employees on average.
How they differ from micro-entity accounts
Small company accounts need more notes, including accounting policies, and use fuller balance sheet and profit and loss formats. The directors also prepare a directors’ report for the shareholders. A company within the micro-entity limits can still choose small company accounts if it wants to show more detail. To weigh up the two, compare micro-entity and small company accounts.
What reaches Companies House
At present a small company can leave its profit and loss account and directors’ report out of its Companies House filing, or file abridged accounts if every member agrees. From 1 April 2028, abridged accounts end, the profit and loss account must be delivered (with an option to keep it off the public register) and all accounts must be filed using software.
A small company can usually claim audit exemption too, so its accounts need no auditor.
Related questions
- Who qualifies as a micro-entity? A company within two of three limits: £1 million turnover, a £500,000 balance sheet total and 10 employees.
- Were the small company limits lower before April 2025? Yes, for financial years starting between 1 January 2016 and 5 April 2025 they were £10.2 million turnover and a £5.1 million balance sheet total.
Related terms
-
Micro-entity accounts
Micro-entity accounts are the simplified annual accounts that a company qualifying as a micro-entity can prepare under the accounting standard FRS 105.
Read definition -
Micro-entity
A micro-entity is the smallest category of UK company under company law.
Read definition -
FRS 105
FRS 105 is the UK accounting standard for companies that use the micro-entities regime.
Read definition -
Filleted accounts
Filleted accounts is the informal name for a small or micro company's accounts filed at Companies House without the profit and loss account…
Read definition -
Abridged accounts
Abridged accounts are a shortened form of small company accounts in which some balance sheet lines, and optionally some profit and loss lines…
Read definition
