FRS 105 Micro Entity Accounts in Greenwich

FRS 105 is the UK financial reporting standard that applies to companies using the micro-entities regime. It sets out a simplified framework for preparing annual financial statements, with reduced disclosure requirements and streamlined recognition and measurement rules compared with the fuller standards used by larger companies. When a qualifying company chooses the micro-entities regime, FRS 105 is the standard used to prepare its financial statements, which are then delivered to Companies House in the usual way. It deals with how the accounts are prepared and presented, not with Corporation Tax.

It is available to companies that qualify for the micro-entities regime and decide to apply it. 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 apply, and some companies cannot use the regime irrespective of their size. Meeting two of the three conditions therefore does not guarantee eligibility on its own. It is worth checking your position, particularly if your figures sit close to any of the limits or your circumstances have changed.

No. The micro-entities regime is optional. A company that qualifies can choose to apply it and prepare FRS 105 accounts, or it can apply the small companies regime under FRS 102 instead. There is no requirement to use FRS 105 simply because a company is small. The choice affects the level of disclosure and the way some items are measured, so it is worth considering the trade-offs — for example, whether the reduced disclosures suit the way the accounts are read by lenders, investors or other users. Consistency in later periods usually matters as well.

FRS 102 is the broader UK standard, and it includes a section written specifically for small entities. FRS 105 is narrower and simpler: it applies only to micro-entities, reduces the disclosures required, and streamlines some measurement rules. In practice, FRS 105 accounts are typically shorter and less detailed than small company accounts prepared under FRS 102. The two frameworks can produce different figures in some areas, so moving between them is a decision to take deliberately rather than casually. Which one is appropriate depends on whether your company qualifies for the micro-entities regime and whether you choose to apply it.

Where a company is required to file annual accounts, its micro-entity accounts are delivered to Companies House. Micro-entity accounts can generally be filed in a reduced form, and the profit and loss account is not required to be filed where the company takes advantage of the small companies filing option. You would normally file the balance sheet together with any notes required. Companies House filing is separate from your tax filings and the deadlines are not the same. Filing requirements depend on your company's circumstances, so it is worth confirming what applies to you.

Yes. FRS 105 Micro Entity Accounts are the company's statutory financial statements, prepared under the micro-entities regime and filed with Companies House. A CT600 is a Corporation Tax Return submitted to HMRC, and it deals with the company's tax position for the period. They are different documents with different purposes and different submission routes, even though the figures in your accounts will often inform the tax return. Preparing the accounts does not discharge your Corporation Tax obligations, and submitting a CT600 is not the same as filing accounts. Many companies deal with both around the same time, which is why it helps to plan them together.

We generally need a complete picture of the company's transactions for the accounting period. Useful items include bookkeeping or accounting records, bank and credit card statements, sales invoices and receipts, purchase invoices and expense records, payroll information, details of any loans or finance agreements, and information about assets such as equipment or vehicles. It also helps to have the previous year's accounts, details of opening balances, and records of anything unusual during the period, such as a share issue, a dividend, or a change in what the company does. The more complete and organised your records, the more straightforward preparation tends to be.

Filing at Companies House is changing. There are moves towards software-only filing of accounts and plans to require more information from small and micro-entity companies, including profit and loss detail that is not always filed at present. These reforms stem from legislation and depend on secondary regulations and implementation timetables, so both the detail and the dates can shift. The practical point is that the way small company accounts are filed is becoming more prescriptive, and what counted as a complete filing in the past may not do so indefinitely. If you want to know where things currently stand, it is worth checking the latest position before you file.