FRS 105 Micro Entity Accounts in Balderton Chester

FRS 105 is the UK financial reporting standard for micro-entities. It sets out the rules for how the smallest qualifying companies prepare their annual accounts when they choose to apply the micro-entities regime. It tends to involve a simpler balance sheet and fewer notes than fuller frameworks, but the accounts are still prepared under defined measurement and disclosure requirements rather than being a rough set of figures.

FRS 105 is available to companies that qualify for the UK micro-entities regime and then choose to apply it. For accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of 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. Other eligibility rules and exclusions can apply, so meeting the size conditions alone does not automatically confirm eligibility. FRS 105 also applies to the individual accounts of a qualifying company that chooses the regime.

No. Qualifying for the micro-entities regime and choosing to use it are two separate things. A company that meets the size conditions may still decide to prepare accounts under a different framework, such as FRS 102 Section 1A, particularly if it wants to present a profit and loss account, needs fuller disclosures, or has plans such as seeking investment. The decision affects how figures are measured and what appears in the accounts, so it is worth reviewing before each set of accounts is prepared rather than assuming the same approach applies indefinitely.

Both are UK financial reporting standards, but they suit different sizes of company and produce different-looking accounts. FRS 105 is the micro-entities standard, with simpler measurement rules, a shorter balance sheet and limited disclosure. FRS 102 Section 1A is intended for small companies and generally allows more accounting policy choices alongside a fuller set of notes. Moving between them can change reported figures and the level of detail you see, so the choice should reflect the company's circumstances rather than just its size.

Where a company is required to file annual accounts, those accounts are delivered to Companies House, and FRS 105 accounts are no exception. What changes under the micro-entities regime is the content and format of the financial statements, not the fact that a filing obligation may exist. Filing is separate from Corporation Tax: the accounts go to Companies House, while the CT600 goes to HMRC. Different small companies may have different filing requirements depending on their legal form or status, which is why the position should be checked for your specific company.

No, they are separate deliverables with different purposes and different recipients. FRS 105 Micro Entity Accounts are the company's financial statements, prepared under the micro-entities framework and filed at Companies House where required. A CT600 is a Corporation Tax Return submitted to HMRC to report taxable profits and calculate the tax due. The accounts are usually the starting point for the return, but the tax computation involves its own adjustments, so the two should never be treated as interchangeable.

Possibly, if it qualifies for the micro-entities regime and chooses to apply it. A newly incorporated company may meet the size conditions in its first period, but eligibility also depends on other rules and exclusions, and a first accounting period can be longer or shorter than 12 months, which affects how the conditions are assessed. There is also a question of whether FRS 105 is genuinely the most useful framework for a new business, particularly if it expects to grow or needs to show fuller information to a lender or investor.

You would typically provide bank and credit card statements for the full period, sales invoices or till and platform reports, purchase and expense records, payroll information, details of any loans or director's account movements, and evidence of assets such as equipment, vehicles or property. Stock or work-in-progress figures, VAT records and any previous accounts or filings are also helpful. The clearer and more complete your records, the more straightforward the preparation process tends to be, and any gaps can usually be identified and resolved early.

Filing requirements at Companies House have been evolving, and reforms have been introduced that affect small and micro-entity companies — including changes to what must be included in filed accounts and how accounts are submitted. Because the detail and the timing of these changes matter, it is sensible to check the current position for your period end rather than relying on what applied a few years ago. We can talk through what is relevant to your company and prepare your FRS 105 Micro Entity Accounts with the current requirements in mind.