FRS 105 Micro Entity Accounts in Devizes

FRS 105 is the UK financial reporting standard used to prepare micro-entity accounts. It sets out how a qualifying micro-entity that has chosen to apply the micro-entities regime presents its financial statements, including the format of the balance sheet and profit and loss account and the limited notes that accompany them. It is deliberately simpler than the fuller reporting frameworks, which is why it tends to suit very small companies that want concise, cost-effective accounts rather than a detailed financial report.

FRS 105 is available to companies that both qualify for the micro-entities regime and choose to apply it. Qualification depends on meeting the relevant size conditions and not falling within any of the exclusions that apply to the regime — so being a small company does not automatically mean FRS 105 applies. Directors also have a choice: a company that qualifies is not obliged to use the micro-entities regime if a fuller framework would serve its purposes better.

No. The micro-entities regime is an option, not an obligation. A company that qualifies may use FRS 105, or it may instead prepare accounts under a fuller framework such as FRS 102. Directors might choose the fuller route where lenders, investors or group requirements call for more detail, or where the business wants to present a more complete picture of its position. The right choice depends on the company's circumstances rather than the size test alone.

For accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of the 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 conditions sit alongside the wider rules and exclusions that govern the regime, which is why meeting the size tests does not guarantee eligibility on its own. Where a company has recently grown or restructured, it is worth checking its position carefully before deciding on the reporting basis.

FRS 102 is a fuller financial reporting framework with more recognition and measurement options, more disclosure requirements and greater scope for presenting detail. FRS 105 is the streamlined micro-entities standard, with a shorter set of statements, fewer notes and simpler measurement rules. In practice, FRS 105 accounts are quicker and cheaper to produce, but they give readers less information. If a company needs to show a richer picture to a bank, an investor or another stakeholder, FRS 102 may be the more suitable framework.

Yes — a company's annual accounts, including micro-entity accounts prepared under FRS 105, are filed at Companies House as part of its statutory reporting obligations. What is filed should reflect the financial statements prepared for the company. Filing accounts at Companies House is separate from filing a Corporation Tax Return with HMRC, and it is also separate from the Confirmation Statement, so the three should not be treated as interchangeable. If you are unsure what your company needs to file and when, we can walk you through the requirements that apply to your situation.

Yes. FRS 105 accounts are prepared under the accounting and financial reporting framework and are used for the company's statutory accounts. A CT600 is a Corporation Tax Return submitted to HMRC, which deals with the company's tax position. The two are linked in that the tax return generally starts from the figures in the accounts, but they are different documents, prepared for different purposes and submitted to different bodies. We can help with the accounts and financial reporting work, and point you in the right direction where the tax filing needs separate attention.

As a starting point, we would usually need your bookkeeping or accounting records for the period, bank statements and reconciliations, sales and purchase information, payroll details where you employ staff, and records of any assets, loans or amounts owed to and by the company. Details of any significant transactions, unusual items or changes in the business during the year are also helpful. Having this information together makes the preparation smoother and reduces the chances of queries later on. If you are not sure what is relevant, send what you have and we can tell you what else is needed.

A newly incorporated company can be eligible for the micro-entities regime, but eligibility still depends on the company's circumstances and the rules and exclusions that apply — it is not automatic simply because the company is new or small. In many cases a first set of accounts covers a shorter period, and there may be little or no comparative information to present, so the accounts look different from those of an established trading company. We can review your position and explain how FRS 105 Micro Entity Accounts would be prepared for a first accounting period.

Company filing requirements and the ways accounts can be submitted do evolve over time, so it is sensible to check the current position rather than relying on what applied a few years ago. The underlying point is that accounts still need to be prepared on the correct reporting basis for the company and filed with the relevant information. We keep track of current requirements so your FRS 105 Micro Entity Accounts are put together on an appropriate basis, and we will flag anything that affects your company as it arises.