If you run a very small UK limited company, micro-entity accounts could be the simplest and most appropriate filing option available. This guide walks you through everything you need to know about qualifying for micro-entity status, preparing your accounts under FRS 105, and filing them correctly with both Companies House and HMRC.
What Are Micro-Entity Accounts?
Micro-entity accounts are the simplest statutory accounts available for UK limited companies. Under the micro-entities regime (FRS 105), you can file only a balance sheet with Companies House—no profit and loss account is required publicly.
Eligibility: Do You Qualify as a Micro-Entity?
Your company qualifies as a micro-entity if it meets at least 2 of these 3 criteria for two consecutive years:
| Criterion | Threshold |
| Turnover | £1 million or less |
| Balance sheet total | £500,000 or less |
| Employees | 10 or fewer (averaged) |
Important threshold update: For periods starting on or after 6 April 2025, the government increased thresholds from the previous £632,000 turnover and £316,000 balance sheet limits.
Your company cannot qualify if it’s:
- A public company
- A charity
- An investment company
- A financial institution (insurance, banking, etc.)
- Part of an ineligible group
What Micro-Entity Accounts Must Include
Under FRS 105, micro-entity accounts filed with Companies House contain only:
- Cover page with company name and registration number
- Simplified balance sheet (signed by a director)
- Four mandatory footnotes to the balance sheet:
- Number of employees
- Called-up share capital not paid
- Off-balance sheet arrangements (if any)
- Statement that accounts are prepared under the micro-entities regime
You are exempt from filing:
- Profit and loss account (not publicly disclosed)
- Director’s report
- Auditor’s report (micro-entity accounts are audit-exempt)[1]
What You Still Must Submit to HMRC
While Companies House only sees your balance sheet, HMRC receives full financial information through your CT600 Company Tax Return:
| Destination | What’s Filed |
| Companies House | Balance sheet only (abbreviated accounts) |
| HMRC | Same balance sheet + CT600 form with turnover, expenses, and taxable profit |
HMRC accepts iXBRL accounts with just the balance sheet because the CT600 form provides all profit and income figures needed for tax calculation.
Step-by-Step: How to File Micro-Entity Accounts
Before You Start
You’ll need:[5]
- Email address and password for Companies House WebFiling
- Authentication code (posted to your registered office—allow up to 5 days)
Filing Through Companies House WebFiling
- Log in to the WebFiling service and authenticate
- Select “File accounts” from your company profile page
- Choose “Micro-entity accounts” option[6]
- Confirm eligibility—verify you meet at least 2 of 3 criteria
- Enter balance sheet figures from your prepared accounts
- Fill required fields including “called-up share capital not paid” (also enter in capital and reserves)
- Leave non-applicable fields blank
- Add footnotes via “Do you want to provide any footnotes to the balance sheet?”
- Enter employee count
- Validate and continue to review
- Sign and date the accounts (director’s name must be printed)
- Submit your accounts—you’ll receive a submission number
- Receive confirmation emails acknowledging receipt and acceptance/rejection
Filing With HMRC
Micro-entity accounts are submitted to HMRC automatically when you file your CT600:
- Use commercial software that files both CT600 and accounts together (recommended)
- The same iXBRL balance sheet is attached to your CT600
- No separate upload to HMRC is needed
Filing Deadlines
| Obligation | Deadline |
| Companies House | 9 months after accounting period end |
| HMRC (CT600) | 12 months after accounting period end |
Example: If your accounting period ends 31 January 2025, you must file with Companies House by 31 October 2025.
Important Changes Coming in 2028
From April 2028, new legislation will change micro-entity filing:
- Micro-entities must file profit and loss accounts with Companies House
- However, you can opt out of publishing the P&L on the public register
- Small companies cannot file “abridged” accounts under new rules
You have 21 months to prepare (until April 2028).
Common Mistakes to Avoid
- ❌ Filing only to HMRC without Companies House—both require accounts
- ❌ Missing director signature on balance sheet
- ❌ Not including all 4 footnotes
- ❌ Filing late—penalties start at £150 and increase
- ❌ Using old thresholds—remember the April 2025 increase to £1m/£500k
When Micro-Entity Accounts Aren’t Right
Consider alternative accounting standards if:
- You need to show creditors more detailed financial information
- Your group requires FRS 102 for consolidation
- You want to voluntarily disclose profit and loss publicly
- Your company will exceed micro-entity thresholds next year
Summary
Micro-entity accounts offer the simplest filing path for qualifying small companies:
- File only a balance sheet publicly with Companies House
- Submit full financial data to HMRC via CT600
- Meet 2 of 3 criteria: £1m turnover, £500k balance sheet, 10 employees
- File within 9 months of your accounting period end
- Prepare for 2028 changes when P&L filing becomes mandatory
For most qualifying companies, micro-entity accounts under FRS 105 provide maximum simplicity with minimum public disclosure—until the 2028 reforms take effect.
[1],[2],[3],[4][5][6]This guide is based on official guidance from GOV.UK, Companies House, and HMRC. Always verify current requirements before filing.