Definition
Micro-entity accounts are the simplified annual accounts that a company qualifying as a micro-entity can prepare under the accounting standard FRS 105. They consist of a balance sheet in a short prescribed format, a simple profit and loss account and a small number of notes. Shareholders and HMRC receive the full set, while Companies House currently needs only the balance sheet and notes.
Why they are simpler
The balance sheet shows headline totals, such as fixed assets, current assets, creditors and capital and reserves, rather than a detailed breakdown. Assets stay at cost with no revaluations, deferred tax is not recognised, and the law presumes the accounts give a true and fair view.
Filing with HMRC and Companies House
HMRC receives the accounts with the CT600 in iXBRL format, which needs commercial software or an agent now that HMRC’s free CATO service has closed. From 1 April 2028, Companies House will also require software filing, and micro-entities must deliver their profit and loss account, with an option to keep it off the public register. The guide on how micro-entity accounts are filed sets out each step.
SmartFiling’s micro-entity accounts filing service prepares the accounts, files them at Companies House and submits the CT600 to HMRC.
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.
- What is the difference between micro-entity and small company accounts? Small company accounts follow FRS 102 Section 1A and need more notes and accounting policies.
Related terms
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Micro-entity
A micro-entity is the smallest category of UK company under company law.
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FRS 105
FRS 105 is the UK accounting standard for companies that use the micro-entities regime.
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Balance sheet
A balance sheet is a snapshot of a company's finances on the last day of its financial year.
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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…
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iXBRL
iXBRL (inline eXtensible Business Reporting Language) is a digital format that adds machine-readable tags to each figure in a set of accounts while keeping the document…
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