─── SPECIALIST MICRO-ENTITY ACCOUNTANTS IN LONDON

FRS 105 Micro Entity Accounts in Tower Hamlets

FRS 105 Micro Entity Accounts are the streamlined financial statements prepared under the micro-entities regime for companies that qualify for it and choose to apply it. In Tower Hamlets, we work with small company directors who want their year-end accounts prepared properly, with the reporting framework matched to their circumstances rather than assumed. FRS 105 provides a simpler basis of preparation than larger-company frameworks, but it still requires accurate figures, sensible judgements and a clear audit trail from your bookkeeping through to the final financial statements. Professional preparation helps you approach your year-end with confidence: the numbers are checked, the disclosure requirements under FRS 105 are considered, and the accounts are set out in a form that reflects how your company actually trades. Whether you are filing your first set of micro-entity accounts or moving across from another framework, the focus stays on getting the reporting right for your business — and on keeping the process straightforward for you. It is worth remembering that FRS 105 is not automatic for every small company. Eligibility depends on the size criteria and on the relevant rules and exclusions, so the first step is normally a short conversation about your turnover, balance sheet and headcount, and about how your accounts will be used.

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FRS 105 Micro-Entity Accounts

(Turnover up to £100K)

£499.00

£399.00

+vat

FRS 105 accounts preparation
Accounting records review
Micro-entity eligibility review
Companies House filing where applicable
Corporation Tax support where included
Director review
FRS 105 accounting support

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Trusted by Micro-Entity Businesses Across the UK

From newly incorporated companies to established owner-managed businesses, our clients trust us to prepare their accounts accurately and handle their annual filing requirements.

      EXCELLENT  
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   Jamie Fletcher 
 
 
 
 Trustindex verifies that the original source of the review is Google. It was a pleasure working with Anum on our accounts. The whole process was swift and effortless, and it was one less thing to worry about. I'd highly recommend them.
  
 
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   Mansur Liman 
 
 
 
 Trustindex verifies that the original source of the review is Google. Accotax have been our accountants for many years now. We maintained them, because of their professionalism. In the last coiple of years, i have working with Imran, who has been very professional and helpful in guiding us through the whole process explaining and clarifying every aspect of it. Very prompt in responding to questions and patient with us even when we seem to be slow. I really enjoy working with him. Thank you
  
 
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   Muna Mohamoud 
 
 
 
 Trustindex verifies that the original source of the review is Google. I highly recommend Imran to anyone looking for a reliable and knowledgeable accountant. He helped me sort out a very complicated backlog of accounts and prepared my overdue tax returns with professionalism and attention to detail. Throughout the process, he was incredibly patient, took the time to answer all of my questions, and explained everything clearly. He guided me through each step and helped rectify issues that had built up over time, making what felt like an overwhelming situation much more manageable. I'm very pleased with the service I've received and truly appreciate his support. If you need help with your accounts or taxes, I would highly recommend Imran.
  
 
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   Sergey M 
 
 
 
 Trustindex verifies that the original source of the review is Google. I had a positive experience with Accotax. The work was completed promptly, my tax return was successfully filed, and I received a refund of overpaid tax. I found the cooperation efficient and helpful. Special thanks to Muhammad Saifullah for his assistance.
  
 
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   Ebba Qureshi 
 
 
 
 Trustindex verifies that the original source of the review is Google. Fabulous team at ACCOTAX - very efficient and good response time . Honest and professional with their work. I would highly recommend them even if you’re a young start up - or a large business they have it covered .
  
 
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   Mael Leboucher 
 
 
 
 Trustindex verifies that the original source of the review is Google. We worked with a few different accountants before finally settling with Accotax, and we’re really glad we did. Their team is great. Abdul is responsive and easy to reach whenever I have a question, which makes a big difference. They take the time to understand how our business works and what our needs are. They are very knowledgeable, and when they don’t have the answer straight away, they take the time to look into it and get back to us quickly. Anum, who looks after our account on a day-to-day basis, including reconciling invoices and preparing the annual accounts, is amazing. She is professional, efficient, and follows the processes we have put in place together. She's also very quickin getting back to us whenever needed. We’re very happy to work with her and hope to continue doing so for as long as possible. Overall, Accotax has made our accounting experience much smoother and easier. We see them as a long-term partner as our business continues to grow. I would 100% recommend them.
  
 
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 Trustindex verifies that the original source of the review is Google. Imran provides a very dependable and straightforward accounting service. He is always responsive and professional when managing our accounts. Excellent support.
  
 
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   Martin Tyrrell 
 
 
 
 Trustindex verifies that the original source of the review is Google. I have really impressed to date with all dealings with Accotax highly enough. From day one, they've made what can often be a complicated and stressful part of running a business feel straightforward and hassle-free. A special mention has to go to Anum, who has been friendly, incredibly responsive, and genuinely cares about providing the best possible service. No question is ever too much trouble, and she consistently goes above and beyond to make sure everything is dealt with efficiently. I wouldn't hesitate to recommend you to anyone looking for an accountant they can genuinely trust.
  
 
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   Matthew Lyon 
 
 
 
 Trustindex verifies that the original source of the review is Google. Great speedy service and very personable. Anum dealt with my income certificate and did everything quickly and helped me out massively. Very happy with the service provided.

─── FRS 105 EXPLAINED

FRS 105 Explained: The Micro-Entities Reporting Framework

FRS 105 is the UK financial reporting standard written specifically for micro-entities. It sits within the UK’s micro-entities regime, which is a set of accounting rules designed to reduce the reporting burden on the smallest companies. In plain terms, if your company qualifies for the micro-entities regime and you decide to use it, your annual financial statements are prepared under FRS 105 — and that normally means a simpler balance sheet, a simpler profit and loss account and a much shorter set of notes than you would see under a fuller framework such as FRS 102. The trade-off is that FRS 105 takes a fairly rigid approach to certain items: some assets are measured on a simpler basis and some revaluation or fair value options available elsewhere are not permitted, so the accounts tend to be more historical and more straightforward in nature. For many Tower Hamlets directors running a small trading or service company, that simplicity is exactly the point — the accounts still show what the company owns, what it owes and what it has earned, but without layers of disclosure that add cost without adding much insight. Choosing the micro-entities regime is a decision rather than a default, and it should be made with an eye on who will read the accounts, any lending or investment requirements, and the practicalities of your bookkeeping. Once the regime is chosen, FRS 105 is the framework that applies to those financial statements.

Who Can Use FRS 105 in the UK?

FRS 105 is designed for companies that qualify for the UK micro-entities regime and that decide to apply it. The regime is optional rather than automatic, so qualifying is only half the story — the directors also need to choose it. On the size question, for accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of 3 applicable 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 those conditions does not, on its own, guarantee eligibility. The micro-entities rules also include specific exclusions and further requirements, and some companies are not permitted to use the regime at all regardless of their size. In addition, the thresholds that apply depend on when your accounting period began, so a company looking back at an earlier year may be working to different figures. For directors in Tower Hamlets, the practical approach is straightforward: review your turnover, balance sheet total and average employee numbers for the relevant period, check the exclusions that might apply to your company, and then decide whether the micro-entities regime suits how your accounts will be used. If you have a lender, investor or parent company expecting a particular level of detail, that commercial consideration matters alongside the technical test. If you are unsure where your company sits, a short review of your last accounts and current bookkeeping is usually enough to give you a clear answer.

A company generally needs to meet at least 2 of these 3 conditions.

Business Turnover

Annual Turnover of £1 Million or less. (£632,000 previously)

Balance Sheet

Balance sheet total of £500,000 or less.(£316,000 previously)

Company Size

On an average 10 or less employees (10 or less previously)

─── What We Review

Everything Your Micro-Entity Company Is Required to Get Right

Most compliance problems are not deliberate. They come from a missed deadline, an accounts template that no longer matches FRS 105, or dividends taken without the paperwork to support them. Our review covers each area in turn and reports back in plain English.

FRS 105 Balance Sheet

A statutory balance sheet prepared to the FRS 105 format, using the reduced disclosure the micro-entities regime allows.

Profit & Loss Account

A profit and loss account prepared for your own records and for your Corporation Tax computation, without public filing.

Required Notes & Disclosures

Preparation of the notes and disclosures required for the company's accounts under the applicable reporting requirements.

Corporation Tax Support

Separate Corporation Tax support can be provided where included in the agreed service. The Corporation Tax calculation is governed by tax rules rather than FRS 105.

Companies House Filing

Your FRS 105 accounts filed with Companies House in the correct format, before your accounts filing deadline.

Director Copy Pack

A full signed copy of your accounts and tax return, ready for your bank, mortgage lender or accountant records.

─── How It Works

How Our FRS 105 Preparation Process Works

Share Your Records

Send your bank statements, sales and purchase records, expenses and payroll details through our secure digital platform.

We Prepare Your FRS 105 Accounts

Our accountants confirm you qualify for the micro-entities regime, then prepare your accounts and CT600 from your records.

Review & Approve

We send draft accounts with clear explanations of the figures, and adjust anything before anything is submitted.

We File Where Required

Once approved, we can assist with the relevant Companies House filing and any separately agreed tax submission.

─── WHY CHOOSE US

Why Choose Our FRS 105 Accountants?

We keep micro-entity accounts straightforward, transparent and easy to manage for busy company directors.

FRS 105 Accounts Support

The micro-entities regime is all we do, so your accounts are prepared to the right standard first time.

Paperless Onboarding

Get set up in minutes with a fully digital, secure process — no printing, posting or office visits.

Deadline Management

We track your Companies House and HMRC deadlines and prompt you early so late filing penalties are avoided.

Clear, Transparent Pricing

One transparent fixed fee covers preparation, the tax return and both filings. No hourly billing.

─── WHO WE HELP

FRS 105 Support for Micro-Entities Across the UK

From one-director businesses and freelancers to startups, consultants and online businesses that qualify for the micro-entities regime.

One-Director Companies

Straightforward FRS 105 accounts and Corporation Tax filing for owner-managed limited companies.

Freelancers & Contractors

Accounts and compliance support for contractors trading through a qualifying limited company.

Startups & Small Companies

Practical support for newly incorporated companies filing their first set of micro-entity accounts.

Dormant & Low-Activity Companies

Dormant company accounts and FRS 105 accounts for LLPs that meet the micro-entity thresholds.

Professionally Prepared FRS 105 Accounts and Accurate Financial Reporting

Preparing FRS 105 Micro Entity Accounts starts with your records: bank transactions, sales and purchase invoices, payroll information, expense receipts, stock or work-in-progress details where relevant, and any loan or hire purchase agreements in place during the period. From those records, we build a set of financial statements that reflects your company’s activity for the accounting period — typically a balance sheet, a profit and loss account and the limited notes required under the micro-entities regime. The work is grounded in the applicable reporting requirements rather than guesswork, and it is carried out by accountants who understand where the practical judgement calls usually arise: cut-off around the period end, treatment of director’s loan balances, accruals and prepayments, depreciation, and the distinction between items that belong in the accounts and items that belong in your tax computations. It is important to keep two things separate. The financial statements prepared under FRS 105 are one deliverable; filing those accounts with Companies House is a separate step with its own requirements. A Corporation Tax Return (CT600) is a further, distinct filing made to HMRC, and the figures on it are derived from the accounts but not identical to them. We can help with each of these in the right order, so that the accounts, the Companies House filing and the tax position all hang together sensibly. What we cannot do — and would never claim — is guarantee any particular outcome from a filing or promise that accounts will be accepted without question. What we can do is prepare the accounts carefully, explain the basis on which they have been prepared, and give you a clear picture of your company’s financial position for the period.

ICAEW

ACCA

AAT

Get Help With Your FRS 105 Micro Entity Accounts in Tower Hamlets

If your year end is approaching, or you are simply not sure whether the micro-entities regime is the right fit for your company, get in touch to talk through your FRS 105 Micro Entity Accounts. A short initial conversation is usually enough to establish the basics: how your company is structured, what it does, roughly how it trades, who currently looks after your bookkeeping, and when your accounts and other filings are due. From there we can confirm what information we need from you, set out how the preparation process will work, and give you clear, transparent pricing so there are no surprises along the way. If you are switching accountants, we can also talk you through how records are normally handed over. Bring your questions — about eligibility, about the difference between your accounts and your Corporation Tax Return (CT600), or about what the micro-entities regime means in practice for a company like yours — and we will give you a straight answer rather than a sales pitch.

─── FAQs

FRS 105 Accounts Preparation FAQs

Still unsure where you stand? Reach out to our UK team at info@microentityaccounts.co.uk and we will review your filing history with you.

What is FRS 105?

FRS 105 is the UK financial reporting standard that applies to micro-entity financial statements. It is the accounting framework used when a qualifying company chooses to apply the micro-entities regime, and it is designed to keep reporting simple: a balance sheet, a profit and loss account and a short set of notes. Compared with fuller frameworks, fewer accounting policy choices are available and some measurement options are restricted, which is what keeps the preparation process lighter.

Who can use FRS 105?

FRS 105 is intended for companies that qualify as micro-entities and that choose to apply the micro-entities regime. Meeting the size criteria is not the whole story — there are additional rules and exclusions that can affect whether a company is eligible, so it is worth checking your specific position rather than assuming. Directors of Tower Hamlets companies often ask us to confirm eligibility before deciding which framework to use for the year.

What are the current micro-entity eligibility criteria?

For accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of the following 3 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. These are size conditions rather than a complete definition of eligibility, and the relevant rules and exclusions still apply on top of them. For earlier periods, different thresholds applied, so the date your accounting period began matters.

Is FRS 105 compulsory for every micro-entity?

No. The micro-entities regime is an available accounting regime, not a mandatory one. A company that qualifies can choose to apply it, and if it does, FRS 105 is the framework used for those financial statements. Some directors prefer a fuller framework because of how the accounts will be used — for example where a lender, investor or group parent expects more detail — and in those cases the micro-entities regime may not be the most suitable option even where it is technically available.

What is the difference between FRS 105 and FRS 102?

FRS 102 is a fuller financial reporting standard that applies to a much wider range of companies, including small companies that do not use the micro-entities regime. FRS 105 is narrower and simpler: it allows fewer accounting policy choices, restricts certain measurement approaches such as revaluations and fair value adjustments, and requires far less disclosure. In practice, FRS 102 accounts tend to be longer and more detailed, while FRS 105 accounts are shorter and more historical in nature. Neither is 'better' in the abstract — the right framework depends on eligibility, on who will read the accounts, and on what those readers need to see.

Do FRS 105 accounts need to be filed with Companies House?

The financial statements prepared under FRS 105 are the basis for your company's annual accounts filing, which is submitted to Companies House. That filing is a separate exercise from preparing the accounts themselves, and it is also separate from your Corporation Tax obligations. We can handle the preparation and the filing as linked steps so that the figures going to Companies House are the same figures you have reviewed and approved.

Is a Corporation Tax Return (CT600) separate from FRS 105 accounts?

Yes — they are two distinct deliverables. FRS 105 Micro Entity Accounts are the financial statements prepared under the micro-entities reporting framework. A CT600 is the Corporation Tax Return submitted to HMRC. The tax return starts from the profit shown in your accounts, but adjustments are then made for things that are treated differently for tax purposes, such as disallowable expenses and capital allowances. Because the two documents serve different purposes, they are prepared and filed separately even though they are closely related.

What information is needed to prepare FRS 105 accounts?

In most cases we will need your bank statements and bookkeeping records for the period, sales and purchase invoices or a summary of them, payroll information, details of any loans, hire purchase or lease agreements, and supporting documents for significant purchases. It also helps to have a note of anything unusual during the year, such as an asset purchase or disposal, a change in share capital, or a director's loan movement. If you already use accounting software, granting access is usually the quickest route. If your records are incomplete, we can talk through what needs tidying up first.

Can a new limited company use FRS 105?

A newly incorporated company can potentially use FRS 105 for its first accounting period if it qualifies as a micro-entity and chooses to apply the micro-entities regime. In the first period the size test works a little differently, because there is no prior-year comparison to rely on, and the period may be longer or shorter than twelve months depending on your year-end. It is worth checking the position early so that your bookkeeping is set up in a way that supports the framework you intend to use.