FRS 105 Micro Entity Accounts in Co.tyrone

FRS 105 is the UK financial reporting standard that applies to companies using the micro-entities regime. It sets out the recognition, measurement and disclosure requirements for the financial statements of a qualifying micro-entity, and it is intentionally simpler than the standards used by larger companies. In practice, that means fewer accounting policy choices, restricted use of fair value and revaluation accounting, and a shorter set of notes. FRS 105 is the framework you follow when your company qualifies for the micro-entities regime and chooses to apply it.

FRS 105 is intended for companies that both qualify for the UK micro-entities regime and decide to apply it. For accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of 3 applicable size conditions: turnover of no more than £1 million, a balance sheet total of no more than £500,000, and an average of no more than 10 employees. Meeting the size tests alone does not guarantee eligibility, because other rules and exclusions can apply — for example, certain types of company are not permitted to use the regime. It is worth checking your position for each accounting period before the accounts are prepared.

No. The micro-entities regime is an available accounting regime rather than a mandatory one. A company that qualifies can choose to apply it and prepare FRS 105 Micro Entity Accounts, or it may use a different framework, such as the small companies regime under FRS 102. The right choice depends on your circumstances, including the level of detail you want to provide and any accounting policies you would prefer to use. If a company does not qualify as a micro-entity, FRS 105 is not available to it at all.

Both are UK financial reporting standards, but they serve different sizes of company and offer different levels of flexibility. FRS 105 is the micro-entity standard and is deliberately stripped back: there is little scope for revaluation or fair value accounting, and far fewer disclosures are required. FRS 102, including the small companies variant often referred to as Section 1A, allows more accounting policy options and generally requires more disclosure. A company that qualifies as a micro-entity may still prefer FRS 102 in some situations, so the framework is a decision to make rather than a default.

Statutory accounts for a limited company are generally filed at Companies House, and micro-entity accounts prepared under FRS 105 can be filed in that way, with the content reflecting the framework used. Filing accounts is separate from dealing with HMRC: submitting your annual accounts does not settle your Corporation Tax position, and paying or reporting Corporation Tax does not replace your accounts filing. Likewise, a Confirmation Statement is a different filing again and does not contain your financial statements. If you are unsure which obligations apply to your company, we can help you map them out.

Yes, they are two distinct filings. The FRS 105 Micro Entity Accounts are your statutory financial statements, prepared under the micro-entity framework and generally filed at Companies House. The CT600 is a Corporation Tax Return submitted to HMRC, which reports your company's taxable profits and is based on, but not identical to, your accounts. The two documents serve different purposes and go to different bodies, so it is important not to treat one as a substitute for the other.

We normally ask for complete records covering the accounting period, including bank and credit card statements, sales invoices and receipts, purchase invoices and expense records, payroll information, details of any loans or finance agreements, records of assets bought or sold, and stock or work-in-progress figures where relevant. It also helps to have your previous year's accounts and any relevant correspondence from Companies House or HMRC. If your records are partly paper-based or held in different systems, let us know — we can work with what you have and suggest practical ways to fill any gaps before preparation begins.

Companies House has been introducing reforms under the Economic Crime and Corporate Transparency Act, and these include changes affecting how accounts are filed and what smaller companies, including micro-entities, are expected to submit. Because the detailed requirements and their timing can be updated, the safest approach is to check the current Companies House guidance for your filing, or ask us to confirm what applies to your company's next set of accounts. We keep an eye on these developments so that the FRS 105 Micro Entity Accounts we prepare reflect the rules in force at the time.