FRS 105 micro-entity accounts in Lutterworth

FRS 105 accounts for Lutterworth 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 Lutterworth businesses: local facts

Lutterworth is in the Harborough council area, in the East Midlands region. Harborough has around 5,420 VAT- and PAYE-registered businesses, and 4,890 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 Harborough are professional, scientific and technical services (805), wholesale and retail (665) and construction (645). For professional, scientific and technical services companies in Lutterworth, 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. That puts professional, scientific and technical services at 16% of the local micro-business base.

Zooming in, the ONS neighbourhood area around Lutterworth (Harborough 010) has 600 VAT- or PAYE-registered businesses, and 515 of them (86%) are micro businesses.

Harborough ranks 736 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 wholesale and retail (665 micro businesses in Harborough), closing stock and the VAT treatment of different product lines are the usual pressure points, so we value stock carefully and check your VAT records. In construction (645 micro businesses in Harborough), Construction Industry Scheme deductions, retentions and stage payments can distort profit, so we reconcile your CIS statements before the accounts are prepared.