Complete Guide to Micro-Entity Accounts UK 2024/25
Everything you need to know about filing your micro-entity accounts with Companies House. Eligibility criteria, FRS 105 requirements, deadlines, and how to avoid penalties.
In This Guide
1. What is a Micro-Entity Company?
A micro-entity is the smallest category of limited company in the UK. These companies benefit from simplified accounting and reporting requirements, making it easier and cheaper to comply with Companies House obligations.
According to the Companies Act 2006, micro-entities can prepare and file much simpler accounts than larger companies.
Key Benefit
Most sole-director limited companies with modest turnover qualify as micro-entities, allowing them to file a simple balance sheet instead of full accounts.
2. Eligibility Criteria for Micro-Entity Status
To qualify as a micro-entity, your company must meet at least 2 of these 3 criteriafor two consecutive financial years:
| Criterion | Threshold |
|---|---|
| Annual Turnover | Not more than £632,000 |
| Balance Sheet Total (Total Assets) | Not more than £316,000 |
| Average Number of Employees | Not more than 10 |
Important Note
Some companies cannot use micro-entity exemptions even if they meet the size criteria, including: public companies, companies that are part of a group, charities, and certain financial sector companies.
3. FRS 105 Accounting Standard
Micro-entities follow the FRS 105 (Financial Reporting Standard applicable to the Micro-entities Regime) accounting standard. This is the simplest UK accounting standard, designed specifically for the smallest companies.
Key Features of FRS 105:
- Simplified balance sheet format with fewer disclosure requirements
- No requirement to prepare a profit and loss account for Companies House
- No requirement for a directors' report
- No audit requirement (if you meet all criteria)
Source: Financial Reporting Council
4. What You Need to File
As a micro-entity, you must file the following with Companies House:
Micro-Entity Accounts
- • Abbreviated balance sheet
- • Notes to the accounts (minimal)
- • Balance sheet date statement
Confirmation Statement
- • Annual confirmation of company details
- • Due at least once every 12 months
- • £13 online / £40 paper
Also Required for HMRC
You must also file a CT600 Corporation Tax Return with HMRC, along with full accounts and computations. This is separate from your Companies House filing.
5. Filing Deadlines
| Filing | Deadline | Example |
|---|---|---|
| Annual Accounts (Companies House) | 9 months after year end | Year end 31 March → Deadline 31 December |
| CT600 (HMRC) | 12 months after year end | Year end 31 March → Deadline 31 March next year |
| Corporation Tax Payment | 9 months + 1 day after year end | Year end 31 March → Due 1 January |
| Confirmation Statement | 14 days after review period | Annual requirement |
6. Late Filing Penalties
Companies House charges automatic penalties for late filing. These penalties apply regardless of whether you have a "reasonable excuse" — though you may be able to appeal.
| How Late | Private Company Penalty | If 2nd Consecutive Late |
|---|---|---|
| Up to 1 month late | £150 | £300 |
| 1 to 3 months late | £375 | £750 |
| 3 to 6 months late | £750 | £1,500 |
| More than 6 months late | £1,500 | £3,000 |
7. Micro-Entity vs Small Company Accounts
If you exceed the micro-entity thresholds but are still relatively small, you may qualify as a "small company" instead.
| Criterion | Micro-Entity | Small Company |
|---|---|---|
| Turnover | ≤ £632,000 | ≤ £10.2 million |
| Balance Sheet Total | ≤ £316,000 | ≤ £5.1 million |
| Employees | ≤ 10 | ≤ 50 |
| Accounting Standard | FRS 105 | FRS 102 Section 1A |
| Audit Required? | No | No (if meets conditions) |
| Directors' Report | Not required | Abbreviated version |
8. How to File Your Micro-Entity Accounts
Option 1: DIY with Software (Recommended)
Use accounting software that generates iXBRL-formatted accounts ready to submit directly to Companies House. This is the fastest and most cost-effective method.
Annual Accounts UK
Our AI-powered tool generates HMRC-compliant micro-entity accounts from your bank statements in under 2 hours. No accounting knowledge required.
Option 2: Use an Accountant
Traditional accountants typically charge £285-£445 for micro-entity accounts preparation and filing. This may be worthwhile for complex situations.
Option 3: File Directly with Companies House
You can use the Companies House WebFiling service for free, but you'll need to prepare the figures yourself.
9. Frequently Asked Questions
What is a micro-entity company?
A micro-entity is a very small company that meets at least 2 of these 3 criteria: annual turnover not more than £632,000, balance sheet total not more than £316,000, and average number of employees not more than 10.
What is the deadline for filing micro-entity accounts?
You must file your annual accounts with Companies House within 9 months of your accounting reference date (financial year end). For example, if your year ends on 31 March, your deadline is 31 December.
What are the penalties for late filing?
Penalties range from £150 for filing up to 1 month late, to £1,500 for filing more than 6 months late. These penalties double for consecutive years of late filing.
Do I need an accountant to file micro-entity accounts?
No, micro-entities do not require an audit and can prepare their own accounts. However, using accounting software or a professional can help ensure accuracy and compliance with FRS 105 requirements.
What is the difference between annual accounts and CT600?
Annual accounts are filed with Companies House and show your company's financial position. The CT600 is your Corporation Tax return filed with HMRC, which calculates the tax your company owes. Both are required but filed separately.