FRS 105 Micro Entity Accounts in Gerrards Cross

FRS 105 is the UK financial reporting standard that applies to companies using the micro-entities regime. It sets out how the financial statements should be prepared — including how items are measured and what notes are required — and it is deliberately simpler and shorter than the standards used by larger companies. When a qualifying company chooses the micro-entities regime, FRS 105 is the framework it applies, which is why the term FRS 105 Micro Entity Accounts is used to describe the resulting statutory accounts.

FRS 105 is available to companies that qualify for the UK micro-entities regime and that choose to apply it. Qualifying is not simply a matter of being small — a company needs to meet the size conditions and must not fall within any of the exclusions that apply to the regime. Some company types and some activities are not eligible at all. Because eligibility depends on your specific circumstances, it is worth reviewing your position rather than assuming that a small turnover means FRS 105 automatically applies.

No. The micro-entities regime is an available accounting regime, not a mandatory one. A company that qualifies may choose to apply it and therefore prepare FRS 105 Micro Entity Accounts, or it may decide that a fuller framework such as FRS 102 is more appropriate for its circumstances — for example where the directors want a more detailed set of financial statements or where a lender, investor or group parent expects a different basis of reporting. The decision is normally taken by the directors with reference to the company's needs.

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 necessary but not always sufficient, because the regime also has rules and exclusions that can affect particular companies. Eligibility should therefore be assessed against your own accounts and company type, not just the headline thresholds.

Both are UK financial reporting standards, but they are aimed at different sizes of company. FRS 105 is the micro-entities standard and is intentionally pared back, with simpler measurement requirements and fewer disclosures. FRS 102 is the fuller standard used by larger or more complex entities and by companies that do not qualify for, or choose not to use, the micro-entities regime. Moving between the two is possible, but it can affect how figures are presented and compared from one year to the next, so the transition is worth planning rather than leaving to the last minute.

A company that prepares FRS 105 Micro Entity Accounts will generally need to file accounts with Companies House as part of its statutory obligations, unless a specific exemption applies to that company. The accounts filed are the financial statements prepared under FRS 105, and filing them is separate from your Corporation Tax position. Filing formats and requirements do change from time to time, so we confirm the current position for your company rather than relying on how things were done in previous years.

Yes. FRS 105 Micro Entity Accounts are the financial statements prepared under the accounting framework, while a CT600 is the Corporation Tax Return submitted to HMRC. They draw on the same underlying financial information, and it is important that the figures are consistent between them, but they are distinct documents prepared for different purposes and filed with different bodies. Preparing the accounts and dealing with the tax return can be handled together or separately, depending on what you need.

As a starting point, we would normally need your bookkeeping or accounting records for the period, bank statements and reconciliations, details of sales and purchases, information on any assets held by the company, and records of amounts owed to or by the business. Details of share capital, loans and any significant transactions or agreements are also helpful. If you have previous accounts, or accounts prepared under a different framework, sending those too helps us keep the presentation consistent and identify anything that needs attention before the financial statements are finalised.

Filing requirements and formats at Companies House have been evolving, so it is sensible to check the current position rather than assume the process is the same as last year. Practical points such as how accounts are submitted, and what information must be included, can affect how you prepare for filing. We keep this in mind when preparing FRS 105 Micro Entity Accounts and will confirm what applies to your company for the relevant period, so that the accounts are ready in a form that suits the filing process.