FRS 105 micro-entity accounts in Ilminster

FRS 105 accounts for Ilminster companies

FRS 105, the Financial Reporting Standard applicable to the Micro-entities Regime, sets the recognition and measurement rules for the smallest companies. It is simpler than FRS 102 Section 1A, which small companies use. Assets and liabilities are generally recorded at historical cost, there is no deferred tax and most disclosure notes fall away.

FRS 105 accounts for Ilminster businesses: local facts

Ilminster is in the Somerset council area, in the South West region. Somerset has around 24,665 VAT- and PAYE-registered businesses, and 22,160 of them, about 90%, have fewer than ten employees (ONS UK Business Counts, 2026). That is the group the micro-entity rules were written for.

The largest groups of micro businesses in Somerset are construction (3,515), agriculture, forestry and fishing (3,430) and professional, scientific and technical services (2,900). If you work in construction in Ilminster, Construction Industry Scheme deductions, retentions and stage payments can distort profit, so we reconcile your CIS statements before the accounts are prepared. That puts construction at 16% of the local micro-business base.

Zooming in, the ONS neighbourhood area around Ilminster (South Somerset 019) has 415 VAT- or PAYE-registered businesses, and 365 of them (88%) are micro businesses.

Somerset ranks 90 of the 1105 areas we serve by number of micro businesses, and its micro share of 90% is in line with the 89% average across them. In agriculture, forestry and fishing (3,430 micro businesses in Somerset), seasonal income, grants and farm equipment need careful year-end treatment, so we tie your accounts to bank records and an asset register. In professional, scientific and technical services (2,900 micro businesses in Somerset), fee income, work in progress at the year end and how directors are paid are the key decisions, so we plan these with you before the accounts are finalised.