FRS 105 Micro Entity Accounts in Maesteg — Clear, Compliant Reporting for Qualifying Companies

FRS 105 is the UK financial reporting standard that applies to companies using the micro-entities regime. It is a simplified framework with reduced disclosure requirements and more straightforward measurement rules, designed for the smallest companies. When a qualifying company chooses the micro-entities regime, FRS 105 is the standard its annual accounts are prepared under, covering the balance sheet, notes and the related statements that make up the financial statements.

FRS 105 is intended for companies that qualify for the UK micro-entities regime and then choose to apply it. Qualification depends on meeting the applicable size conditions together with any relevant rules and exclusions that apply to the company. Because eligibility is not determined by size alone, it is worth reviewing your specific circumstances — including your company's structure and activities — before deciding which framework to use for a set of accounts.

No. The micro-entities regime is an available accounting regime rather than a mandatory one. A company that qualifies may choose to apply it, in which case FRS 105 applies to those accounts, or it may instead prepare accounts under a different framework such as FRS 102 Section 1A. The choice can be revisited from period to period, although consistency is generally useful when comparing results over time.

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. That said, these are the size conditions only. Other eligibility rules and exclusions can also apply, so meeting the thresholds does not automatically guarantee that a company qualifies for the micro-entities regime.

Both are UK financial reporting standards, but they are aimed at different sizes and needs. FRS 105 sits behind the micro-entities regime and is the most streamlined option, with fewer disclosures and simpler measurement rules. FRS 102, including the small company provisions in Section 1A, offers more flexibility in some areas — for example around fair value and certain financial instruments — but comes with a greater disclosure burden. Which is appropriate depends on your company's size, eligibility and how you want the accounts presented.

Yes. Where a company prepares accounts under the micro-entities regime, those financial statements form the basis of the accounts it files at Companies House, subject to the filing requirements that apply to it. Preparing the accounts and filing them are separate steps, and the accounts filing is distinct from your Confirmation Statement. It is also worth knowing that filing requirements for small and micro-entity companies are changing for accounting periods beginning on or after 6 April 2025, so it is sensible to confirm what will be required for your period.

Yes, they are separate. FRS 105 Micro Entity Accounts are the financial statements prepared under the micro-entities regime, while the CT600 is the Corporation Tax Return submitted to HMRC to report the company's taxable profits and calculate the tax due. The two are connected — the accounts figures usually inform the tax computation — but they are different documents with different purposes, deadlines and submission routes, and both need to be dealt with.

Possibly, but it depends on the company's circumstances and whether it qualifies for the micro-entities regime and chooses to apply it. A newly incorporated company needs to consider its position for its first accounting period in the same way as any other company, taking into account the applicable size conditions and any relevant rules or exclusions. It is worth discussing this early, because the framework chosen affects how the first set of financial statements is structured.

At a minimum, you will usually need complete bookkeeping records for the period, bank and payment platform statements, sales and purchase documentation, payroll information if you employ staff, details of equipment or other asset purchases, and information on any loans, hire purchase agreements or director's loan balances. It also helps to know your accounting period dates and whether this is your first set of accounts. With those records in place, the accounts can be built and reconciled properly rather than estimated.

Filing requirements for small and micro-entity companies are being updated for accounting periods beginning on or after 6 April 2025, with more information generally expected to be included in what is filed at Companies House — including, in many cases, the profit and loss position that historically was not filed. Because the detail depends on your company's period dates and individual circumstances, it is worth checking the position for your specific accounts before you file.