FRS 105 Micro Entity Accounts in Ballynahinch

FRS 105 is the UK financial reporting standard that applies to companies using the micro-entities regime. It is a simplified framework: the financial statements still present the company's position and performance, but the disclosure requirements are much reduced compared with fuller accounting standards. Its purpose is to make statutory reporting more proportionate for genuinely small companies, while still producing accounts that give a clear picture of the business.

FRS 105 is intended for companies that both qualify for the micro-entities regime and choose to apply it. Qualifying is assessed against size conditions — 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. Other rules and exclusions can also affect eligibility, and certain types of company are excluded, so meeting the size tests does not automatically mean a company can use the regime.

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 standard used for its financial statements. A qualifying company may instead prepare its accounts under a fuller framework such as FRS 102, which involves more disclosure. The choice is a decision for the directors, and it is worth weighing up what each framework means for your company before committing.

Both are UK financial reporting standards, but they suit different situations. FRS 105 is designed for companies applying the micro-entities regime and offers a simpler presentation with limited disclosure. FRS 102 is the wider standard used by companies that are not micro-entities, or that qualify but decide not to adopt the micro-entities regime, and it generally requires more detailed notes and disclosures. Because the two frameworks can produce differently presented accounts, moving between them is not simply a matter of re-labelling the same figures.

Preparing accounts under FRS 105 and filing accounts with Companies House are two connected but separate steps. Once the financial statements have been prepared, the company's accounts are filed at Companies House in the required form as part of its statutory reporting. The filing obligation exists regardless of the framework used, so adopting the micro-entities regime simplifies how the accounts look rather than removing the need to file them. We can support you through preparing the accounts and the associated filing.

Yes, they are separate documents serving different purposes. FRS 105 Micro Entity Accounts are the financial statements prepared under the accounting framework and filed at Companies House. A CT600 is a Corporation Tax Return submitted to HMRC, which reports the company's taxable profits and tax position. The figures in the accounts often form the starting point for the tax return, but the two are prepared for different recipients and can follow different rules.

A newly incorporated company can potentially use FRS 105 if it qualifies for the micro-entities regime and chooses to apply it — newness alone is not a barrier. In practice, a first accounting period can raise its own questions, such as how long the period runs, whether the company has traded throughout, and what records exist to support the figures. We can look at your specific circumstances and explain which framework is likely to be appropriate for your first set of accounts.

The rules and filing requirements around company accounts are subject to change, and the direction of travel has been toward more digital, structured filing of accounts. Because the detail matters and transitional arrangements can apply, it is sensible to check your position for each accounting period rather than assuming last year's approach still fits. When we prepare your FRS 105 Micro Entity Accounts, we take the requirements applying to your period into account and explain anything that affects how your accounts should be prepared or filed.

We generally need your bookkeeping or accounting records for the period, bank statements and reconciliations, sales and purchase information, details of any assets and liabilities, loan or director's account movements, stock or work-in-progress figures where relevant, and any previous period accounts. If the company is newly incorporated, we will also need the incorporation details and the accounting reference date. The more complete and up-to-date the records are, the more straightforward the preparation tends to be — and we will tell you clearly if anything further is needed.