FRS 105 Micro Entity Accounts in Pershore

FRS 105 is the UK financial reporting standard that applies to the micro-entities regime. It sets out how qualifying micro-entity companies prepare their annual financial statements, including the measurement basis used for the figures and the limited disclosures that are required. You can think of it as the short-form rulebook: it is designed for very small companies, so the accounts are simpler and more concise than those prepared under the fuller standards. FRS 105 is an accounting framework, not a tax return, and it does not change what your company owes in Corporation Tax.

FRS 105 is available to companies that qualify for the UK micro-entities regime and choose to apply it. For accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of the 3 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 tests is not the whole story. Other eligibility rules and exclusions apply — for example, certain types of company and certain regulated activities are outside the regime, and there are additional considerations around groups — so eligibility should be confirmed for your company rather than assumed.

No. The micro-entities regime is an accounting regime that qualifying companies may choose to use, and FRS 105 is the standard that applies when that choice is made. A company that meets the size criteria can generally elect to prepare its accounts under the micro-entities regime, but it is not obliged to do so, and some companies prefer a fuller framework such as FRS 102 for their own reasons. FRS 105 also only applies where the company is actually eligible for the regime in the first place, so it is worth checking both the eligibility position and the commercial preference before deciding.

Both are UK financial reporting standards, but they sit at different levels of complexity. FRS 105 is written specifically for the micro-entities regime and keeps measurement straightforward and disclosure requirements very limited, which produces shorter, simpler accounts. FRS 102 is the standard for larger small companies and other entities, and it involves more detailed recognition, measurement and disclosure requirements — for instance around financial instruments, deferred tax and fair value. In practice, the choice affects how much detail appears in your accounts and how much preparation work sits behind them, so it is worth considering alongside your eligibility for the micro-entities regime.

Yes. A company prepares statutory accounts for each financial year and files them at Companies House as part of its annual accounts submission, and a micro-entity company does this using the filing option that applies to micro-entity accounts. One practical feature of the regime is that a micro-entity company may generally choose not to file its profit and loss account on the public record, although the profit and loss account is still prepared and provided to the company's members. Filing accounts at Companies House is separate from your Corporation Tax filing, which goes to HMRC.

Yes, they are two distinct pieces of work. FRS 105 Micro Entity Accounts are your statutory financial statements, prepared under the financial reporting framework and filed at Companies House. A CT600, by contrast, is the Corporation Tax Return submitted to HMRC, and it computes the company's tax position using tax rules that differ in places from accounting rules. The two are related — both start from your accounting records, and the CT600 is usually prepared alongside or after the accounts — but preparing one does not automatically take care of the other, and the deadlines and submission channels are different.

It helps to have a complete picture of the period, so typically we would ask for your bookkeeping or accounting records for the year, bank and cash statements, sales and purchase records, payroll information for the employees included in the figures, details of any loans, hire purchase or lease agreements, asset purchases and disposals, stock or work in progress where relevant, and the previous year's signed accounts. If your records are kept in accounting software, giving us access can save time and reduce queries. Anything that looks unusual — a one-off transaction, a change in how something is treated, or a new source of income — is worth flagging early, because it often affects how the accounts should be presented.

Company law and filing requirements have been moving forward under the Economic Crime and Corporate Transparency Act, and further changes to how accounts are filed at Companies House are expected over time. These are likely to include a greater emphasis on accounts being prepared and filed in a software-compatible format, and there is ongoing discussion about smaller companies providing more information, such as profit and loss figures, rather than filing a reduced set. The precise scope and timing depend on the implementation of the rules, so the practical answer is to keep your accounting records in order and to review your position each year with someone who follows the changes. We can talk through what any confirmed changes mean for your FRS 105 Micro Entity Accounts when they apply to your company.