Short answer
Micro-entity accounts are a simplified set prepared under FRS 105. You qualify by meeting two of three tests: turnover not more than £1m, balance sheet total not more than £500,000, and not more than ten employees.
Accounts & filing
What are micro-entity accounts and do I qualify?
Micro-entity accounts are the simplest statutory accounts under FRS 105. Here are the size thresholds, what gets filed publicly and the trade-offs before.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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Micro-entity accounts are a simplified set prepared under FRS 105. You qualify by meeting two of three tests: turnover not more than £1m, balance sheet total not more than £500,000, and not more than ten employees.
01
What the micro regime gives you
02
When to choose the fuller small company regime instead
What the micro regime gives you
A short balance sheet, a simple profit and loss account and minimal notes. Historically only the balance sheet reached the public register, though the transparency reforms are changing what small and micro companies must file. The accounts are cheaper to prepare and far quicker to approve.
FRS 105 also forbids some treatments: no revaluation of property, no deferred tax, no capitalising development costs. For most owner-managed trading companies that is a simplification, not a loss.
When to choose the fuller small company regime instead
If you are raising investment, applying for significant lending, or preparing to sell, FRS 102 Section 1A accounts tell a better story and let you revalue property and capitalise qualifying development costs. Investors and banks read micro accounts as thin.
A company claiming R&D relief or holding property often looks better under the small regime. We advise on the choice each year rather than defaulting to the cheapest set.
Before you act
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
What are micro-entity accounts and do I qualify?: questions directors ask
Can a micro-entity be a group member?
Some group companies are excluded from the micro regime, along with charities, LLPs in certain cases, and companies in regulated sectors.
Do micro accounts save tax?
No. The tax computation is the same. The saving is in preparation time and public disclosure.
Can I switch between regimes?
Yes, subject to the size tests, but constant switching makes comparatives awkward and looks unstable to lenders.
What records are needed for what are micro-entity accounts and do i qualify?
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
How much does help with what are micro-entity accounts and do i qualify cost?
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Can you take over what are micro-entity accounts and do i qualify from another accountant?
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Can what are micro-entity accounts and do i qualify be handled online?
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
Which accounting software works best for what are micro-entity accounts and do i qualify?
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
What tax deadlines matter for what are micro-entity accounts and do i qualify?
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
Is this what are micro-entity accounts and do i qualify guidance personal tax advice?
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
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Check the current rules
Use official information as your reference point.
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.