Micro-Entity Balance Sheet Guide (UK 2024/25)
Goal: get a balance sheet that balances and matches what Companies House expects for a micro-entity filing. Below is a practical structure, a worked mini-example, and a copy-paste checklist.
In This Guide
1) Balance sheet structure (micro-entity)
For micro-entities, the balance sheet is typically the key public filing component. The exact labels may vary, but the core structure is: Fixed assets + Current assets − Creditors = Net assets.
| Section | Typical lines | Notes |
|---|---|---|
| Fixed assets | Tangible fixed assets (optional) | Equipment, computers, etc. (if you track depreciation) |
| Current assets | Cash at bank, debtors, stock, prepayments | Most micro-entities: cash + debtors |
| Creditors: amounts falling due within one year | Trade creditors, VAT/PAYE owed, accruals, director loan | Common source of errors: misclassification |
| Net current assets / (liabilities) | Calculated subtotal | Should reconcile logically with cash + what you owe |
| Capital and reserves | Called up share capital, profit and loss account (retained earnings) | Retained earnings is where many first-year companies break |
Source (Companies House filing): GOV.UK micro-entities, small and dormant companies
2) Worked example (mini)
This is a simplified example to illustrate the shape of the balance sheet (not a substitute for your real figures).
| Line | Amount |
|---|---|
| Cash at bank and in hand | £12,000 |
| Debtors | £1,000 |
| Current assets | £13,000 |
| Creditors: due within one year | £3,000 |
| Net current assets | £10,000 |
| Called up share capital | £1 |
| Profit and loss account (retained earnings) | £9,999 |
| Total equity | £10,000 |
Sanity check
In this example, assets (£13,000) = liabilities (£3,000) + equity (£10,000). If your numbers do not balance, something is missing or in the wrong bucket.
3) Common mistakes checklist (copy-paste)
Balance sheet debug checklist
- Cash at bank matches bank statements at year end.
- Director loan is not mixed into trade creditors (and is consistent with withdrawals/repayments).
- VAT/PAYE owed is recorded if applicable (not silently ignored).
- Prepayments/accruals are considered (common in first-year accounts).
- If retained earnings looks “random”, re-check profit movements and drawings.
Related: Opening balances guide · Micro-entity accounts pillar