FRS 105 Micro Entity Accounts in Ballymena

FRS 105 is the UK financial reporting standard for micro-entities. It sets out a simplified basis for preparing financial statements, allowing a much shorter balance sheet, profit and loss account and set of notes than the fuller frameworks used by larger companies. It exists specifically to support the micro-entities regime, so it applies to companies that qualify for that regime and choose to use it.

FRS 105 is intended for companies that qualify as micro-entities under the UK micro-entities regime and decide to apply it. Qualification is based on size conditions, and certain company types are excluded regardless of their size — for example, some regulated or listed entities. Meeting the size tests does not guarantee eligibility on its own, so the rules and exclusions relevant to your company should always be checked before the regime is adopted.

No. The micro-entities regime is an available accounting regime, not a mandatory one. A qualifying company can choose to apply it, and FRS 105 applies when that choice is made. A company that qualifies may instead prepare accounts under a fuller framework such as FRS 102, which typically means more detailed disclosures. The decision is usually about balancing simplicity against the level of detail shareholders, lenders or other users may want.

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. These are size tests only — separate eligibility rules and exclusions also apply, so a company that satisfies the thresholds should not assume it automatically qualifies for the micro-entities regime.

Both are UK financial reporting standards, but they sit at different levels of complexity. FRS 105 is the streamlined micro-entities framework, with a simplified balance sheet and profit and loss account and minimal disclosure requirements. FRS 102 is a fuller framework used by many small and medium-sized companies and involves considerably more disclosure and accounting detail. In short, FRS 105 is the lighter option for qualifying micro-entities; FRS 102 applies more broadly.

Where a company prepares FRS 105 Micro Entity Accounts, it will normally need to file accounts with Companies House for the relevant period, subject to the filing requirements that apply to it. Filing accounts with Companies House is separate from a Corporation Tax Return (CT600), which is submitted to HMRC, and separate again from a Confirmation Statement. The same underlying records often feed all of these, but each has its own requirements and its own submission process.

Yes. FRS 105 relates to the accounting and financial reporting framework used to prepare your company's financial statements. A CT600 is a Corporation Tax filing submitted to HMRC and is a distinct obligation with its own rules, calculations and deadlines. Your FRS 105 accounts can often provide useful figures for the tax return, but preparing one does not automatically satisfy the other, so both need to be dealt with properly.

A newly incorporated company can potentially use FRS 105 if it qualifies for the micro-entities regime and chooses to apply it, but a first year of trading can be less predictable — turnover, staffing and assets may be unusual in a short or part-year period. It is worth confirming eligibility and considering how the company expects to trade over the coming periods before committing to the framework, rather than assuming it will always fit.

Typically we would look for complete bookkeeping or accounting records for the period, bank and credit card statements, sales and purchase records, details of any assets and liabilities, information on loans, directors' transactions, and any relevant correspondence. If a previous set of accounts exists, that is helpful too. Having tidy records in advance makes the preparation of FRS 105 Micro Entity Accounts smoother and reduces the number of queries along the way.

Company filing requirements in the UK have been under review, including how accounts are submitted to Companies House and what information must be included. Some changes are being introduced in stages, and the detail that applies to a given company depends on its accounting period and circumstances. Because the position continues to develop, it is sensible to confirm the current requirements for your specific filing rather than relying on general guidance or older summaries.