FRS 105 Micro Entity Accounts in Dover: Professionally Prepared Financial Statements

FRS 105 is the UK financial reporting standard that applies to companies using the micro-entities regime. It is a simplified framework: the accounts are prepared on a historical cost basis, various fair value and revaluation options are unavailable, and the disclosure requirements are much lighter than under FRS 102. In practice, a company applying it produces a balance sheet, a profit and loss account and a short set of notes, along with any other reports required for the accounts to be complete.

No. The micro-entities regime is an available accounting regime rather than a mandatory one. A company that meets the qualifying conditions may choose to apply it — and FRS 105 is the standard used when that choice is made — but it can also decide to prepare accounts under a fuller framework such as FRS 102. The decision often depends on the needs of shareholders, lenders, investors or anyone else who relies on the accounts, so it is worth discussing before you commit.

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. Meeting those size conditions is not the whole story, however — other eligibility rules and exclusions can apply, and some company types are not able to use the regime at all. Eligibility should always be confirmed against your own circumstances rather than assumed.

Both are UK financial reporting standards, but they are aimed at different sizes of company and offer different levels of simplicity. FRS 105 is the micro-entities standard: historical cost only, minimal disclosures and a very concise set of financial statements. FRS 102 is the standard for larger small companies and others outside the micro-entities regime, and it allows more accounting options — such as certain fair value and revaluation treatments — while requiring considerably more disclosure. Choosing between them affects how your accounts look and how much information is made public.

If the company is required to file annual accounts, then yes — the accounts prepared under FRS 105 are what get filed at Companies House, in the format the micro-entities regime allows. Filing the accounts is separate from dealing with HMRC: it is a company law obligation rather than a tax one, and it sits alongside your Confirmation Statement, which is a different filing altogether. We can help prepare the accounts and support you through the filing process, but we cannot guarantee how any third party will handle a submission.

Yes, they are distinct. FRS 105 Micro Entity Accounts deal with the accounting and financial reporting framework — how your figures are presented in your financial statements and filed at Companies House. The CT600 is a Corporation Tax Return submitted to HMRC, based on the company's taxable profits and computed in line with tax rules, which are not identical to accounting rules. The accounts usually provide the starting point for the tax computation, but preparing one does not automatically deal with the other.

A newly incorporated company can potentially use FRS 105 if it falls within the micro-entities regime, but eligibility is not automatic and depends on the applicable size conditions and any exclusions that apply to the company in question. A first accounting period can raise its own questions — for example around pre-trading costs, the treatment of share capital, or directors' loans — so it is sensible to confirm the position early rather than assuming the regime applies. If your company does not qualify, accounts can be prepared under another framework instead.

Typically we would ask for your bookkeeping records or a trial balance for the period, bank statements and reconciliations, details of sales and purchases, payroll and employee information if you have staff, records of any assets bought or sold, and information on loans, director balances and share capital. If you are moving from one framework to another, the previous year's accounts and any relevant working papers are useful too. The more complete your records are, the more straightforward the preparation tends to be — and we will tell you what is missing if anything is unclear.

Company filing requirements do evolve, and there has been ongoing work in the UK around how accounts are submitted and what information smaller companies need to provide. Because the detail and timing of those changes can shift, the sensible approach is to check the current position before each filing rather than relying on what applied in a previous year. We keep track of the framework as it develops and will flag anything on the horizon that affects your FRS 105 Micro Entity Accounts in Dover.