Micro-Entity Accounts: What You Can File
If you run a small limited company in the UK, you may qualify to file micro-entity accounts — the simplest and most streamlined form of annual accounts you can submit to Companies House.
Micro-entity accounts require minimal disclosure, no profit and loss account on the public record, and can be prepared using the straightforward FRS 105 accounting standard. For thousands of small businesses, this means less paperwork, lower accountancy costs, and faster filing.
In this guide, we'll explain exactly what micro-entity accounts are, whether your company qualifies, and how to file them correctly.
What Are Micro-Entity Accounts?
Micro-entity accounts are a simplified format of statutory accounts that qualifying small companies can file with Companies House. They were introduced in 2013 to reduce the administrative burden on the UK's smallest businesses.
Under the micro-entity regime, you can file:
- A simplified balance sheet with fewer line items
- Minimal notes to the accounts
- No directors' report (unless you choose to include one)
- No profit and loss account on public record
Who Qualifies as a Micro-Entity?
To qualify as a micro-entity, your company must meet at least two of the following three criteria for the financial year:
| Threshold | Limit (from April 2025) |
|---|---|
| Annual turnover | Up to £1 million |
| Balance sheet total | Up to £500,000 |
| Average employees | No more than 10 |
Companies That Cannot Be Micro-Entities
Even if you meet the size thresholds, certain types of company are excluded from the micro-entity regime:
- Public companies (PLCs)
- Companies that are part of a group required to prepare consolidated accounts
- Charities
- Limited liability partnerships (LLPs)
- Companies regulated by the Financial Conduct Authority (FCA)
- Insurance companies
What's Included in Micro-Entity Accounts?
Micro-entity accounts prepared under FRS 105 include:
1. Balance Sheet
A simplified balance sheet showing:
- Fixed assets (property, equipment, investments)
- Current assets (cash, stock, debtors)
- Creditors due within one year
- Net current assets/liabilities
- Total assets less current liabilities
- Creditors due after one year
- Capital and reserves
2. Notes to the Accounts
Micro-entities only need to include very limited notes:
- Accounting policies (brief statement)
- Advances and credits to directors (if applicable)
- Financial commitments and guarantees (if material)
3. No Directors' Report Required
Unlike small companies, micro-entities are not required to prepare or file a directors' report. This saves time and removes the need to write narrative explanations of the company's activities.
Micro-Entity Accounts vs Small Company Accounts
If your company is too large to qualify as a micro-entity, you'll need to file small company accounts instead. Here's how they compare:
| Feature | Micro-Entity | Small Company |
|---|---|---|
| Balance sheet | Simplified format | More detailed |
| Profit & loss on public record | No | Optional (can file filleted) |
| Directors' report | Not required | Required |
| Notes to accounts | Minimal | More extensive |
| Accounting standard | FRS 105 | FRS 102 Section 1A |
How to File Micro-Entity Accounts
Filing micro-entity accounts to Companies House involves these steps:
Step 1: Prepare Your Accounts
Gather your financial records for the accounting period and prepare a balance sheet. You'll need figures for:
- Fixed assets (property, equipment, vehicles)
- Current assets (bank balance, cash, money owed to you)
- Creditors (money you owe to suppliers, HMRC, loans)
- Share capital and retained profits
Step 2: Convert to iXBRL Format
Companies House requires accounts to be filed in iXBRL format (Inline eXtensible Business Reporting Language). This is a machine-readable format that allows automated processing.
You cannot simply upload a PDF or Word document — you need software that generates iXBRL files.
Step 3: Submit to Companies House
Once your accounts are in the correct format, submit them electronically to Companies House before your filing deadline.
With TinyTax, you can prepare and file micro-entity accounts directly to Companies House in one workflow — no separate software or manual conversion needed.
Filing Deadlines for Micro-Entity Accounts
Private companies must file their accounts with Companies House within 9 months of the accounting reference date (the end of your financial year).
For example, if your accounting period ends on 31 March 2025, your accounts must be filed by 31 December 2025.
First Year Filing
If this is your company's first set of accounts, you have 21 months from incorporation to file — but the accounts can only cover a maximum of 18 months.
Late Filing Penalties
Companies House charges automatic penalties for late filing:
| How Late | Penalty |
|---|---|
| Up to 1 month | £150 |
| 1-3 months | £375 |
| 3-6 months | £750 |
| Over 6 months | £1,500 |
iXBRL and Micro-Entity Accounts
The iXBRL requirement sometimes confuses business owners. Here's what you need to know:
iXBRL stands for Inline eXtensible Business Reporting Language. It's a way of embedding machine-readable "tags" within an HTML document, so that Companies House (and HMRC) can automatically extract and validate the data.
You don't need to understand the technical details — accounting software like TinyTax handles the iXBRL conversion automatically. You simply enter your figures, and the software generates a compliant iXBRL file ready for submission.
Learn more in our guide to iXBRL accounts.
Changes Coming in April 2027
From 1 April 2027, Companies House is changing the filing requirements for micro-entities. The key change is:
Micro-entities will be required to file a profit and loss account as part of their statutory accounts.
This means your turnover and profit figures will become part of the public record. The change is designed to improve transparency and reduce fraud, but it will mean more financial information about your company becomes publicly available.
Until then, micro-entities can continue to file balance-sheet-only accounts with minimal disclosure.
Frequently Asked Questions
Can I choose to file more detailed accounts as a micro-entity?
Yes. Qualifying as a micro-entity doesn't mean you must use the simplified format. You can choose to file small company accounts or even full accounts if you prefer. Some companies do this for commercial reasons — for example, to demonstrate financial strength to lenders or investors.
Do I still need to prepare full accounts for HMRC?
Yes. While you can file simplified accounts to Companies House, HMRC requires a full profit and loss account as part of your Corporation Tax return (CT600). The accounts you file to Companies House and HMRC are separate filings with different requirements.
What if my company grows and no longer qualifies?
You lose micro-entity status if you fail to meet at least two of the three thresholds for two consecutive years. Once that happens, you'll need to prepare small company accounts for future years.
Can a dormant company file micro-entity accounts?
Yes, dormant companies can file micro-entity accounts if they meet the size thresholds. In fact, dormant companies often have even simpler filing requirements — they may qualify for dormant company accounts, which are even more streamlined.
Are micro-entity accounts suitable for property companies?
Yes. Property investment companies and buy-to-let businesses can file micro-entity accounts if they meet the thresholds. This is common for landlords who hold properties through a limited company.
Get Started with TinyTax
TinyTax makes it easy to file micro-entity accounts to Companies House. Enter your balance sheet figures, and we'll generate compliant iXBRL accounts and submit them directly — all in one workflow.
Combine your accounts filing with your CT600 Corporation Tax return to complete both HMRC and Companies House filings in a single session.