GuidesMicro-entity accounts, explained simply

Micro-entity accounts, explained simply

If you run a small limited company, there is a good chance you qualify for the simplest form of statutory accounts. Here is how to tell, and how to file them without paying for help you may not need.

Are you a micro-entity?

Your company is a micro-entity if it meets at least two of these three conditions: turnover of £1 million or less, total assets on the balance sheet of £500,000 or less, and 10 or fewer employees on average. (These are the limits for financial years starting on or after 6 April 2025.)

Two caveats: the company must be a UK company, and certain types — such as financial firms and charities — cannot use the micro-entity rules regardless of size.

Why they are so much simpler

Micro-entity accounts (prepared under a standard called FRS 105) are significantly reduced in scope: a short balance sheet and a small set of standard notes.

You are exempt from most of the detailed disclosures larger companies must include — which is precisely why preparing them yourself is realistic, even without an accounting background.

How OneFiler does the work

You enter your year-end figures — or import them directly from QuickBooks or Xero — and OneFiler prepares your accounts and handles all the technical formatting HMRC and Companies House require.

The same figures flow into your tax return as well, so you only enter them once.

Common questions

What do micro-entity accounts include?

A simplified balance sheet and a small set of standard notes, prepared under FRS 105. A profit and loss account is prepared for HMRC, but the version filed publicly at Companies House is only the balance sheet and notes.

Can a dormant company file micro-entity accounts?

A dormant company usually files dormant accounts, which are even simpler. If the company had transactions that break dormancy, micro-entity accounts are typically the next step — OneFiler supports both.

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