FRS 105 Micro Entity Accounts in Staines-upon-Thames

FRS 105 is the UK financial reporting standard for micro-entities. It is the smallest and most simplified framework within UK GAAP, designed for companies that qualify for the micro-entities regime and choose to apply it. Compared with other frameworks, FRS 105 involves significantly reduced disclosure, a historical cost measurement basis and no revaluation or fair value accounting, which keeps the financial statements short and straightforward. It is a separate framework from FRS 102, and choosing FRS 105 is a decision a qualifying company makes rather than an automatic default.

FRS 105 is intended for companies that both qualify for the UK micro-entities regime and choose to apply it. Qualifying means meeting the applicable size conditions and not falling within any of the relevant exclusions, so a company needs to be assessed properly rather than assumed to be eligible. Because eligibility is tested against the company's figures, it can change from one accounting period to the next — a company that used FRS 105 last year is not automatically able to use it this year. It is also worth remembering that the micro-entities regime is one option among several, and some companies may be better served by a different framework.

No. The micro-entities regime is an available regime, not a mandatory one. A company that qualifies for it may choose to apply FRS 105, but it may also choose to prepare its accounts under a different framework, for example FRS 102 including Section 1A for small entities. The right choice often depends on what the company needs from its accounts — whether that is the simplest possible set of financial statements or a fuller presentation for lenders, investors or internal planning. Discussing the options before the year end is usually more useful than deciding at the last minute.

For accounting periods beginning on or after 6 April 2025, a company generally needs to meet at least 2 of the following 3 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. These are the size conditions, and they sit alongside other rules and exclusions that can affect whether the micro-entities regime is available. Meeting two of the three thresholds on its own does not always guarantee eligibility, so the position should be checked against your company's specific circumstances and the framework for the relevant accounting period.

Both are part of UK GAAP, but they are built for different sizes of entity. FRS 102 is the main standard for larger entities, with Section 1A providing a reduced-disclosure version for small companies that are not micro-entities. FRS 105 goes much further in simplifying things: it is a short, self-contained standard with considerably fewer disclosure requirements, no fair value accounting, no revaluations, and a measurement approach based largely on historical cost. In practice, FRS 105 accounts tend to be shorter and less complex, while FRS 102 accounts provide a fuller picture. Which is more appropriate depends on your company's eligibility and on what the accounts are being used for.

Yes. Where a company prepares accounts under FRS 105 and the micro-entities regime, those financial statements are used for the company's annual accounts filing at Companies House. The accounts must be filed within the statutory filing deadline that applies to your company's accounting reference date. It is important to separate this from other filings: the accounts filing is not the same thing as a Corporation Tax Return, and it is not the same as the Confirmation Statement. Each has its own purpose, its own content and its own filing arrangements.

Yes, they are two distinct things. FRS 105 Micro Entity Accounts are the financial statements prepared under the micro-entities regime and filed at Companies House. A CT600 is a Corporation Tax Return submitted separately to HMRC, which deals with the company's tax position for the period. The figures in the accounts will normally inform the tax return, and the two need to be consistent with each other, but preparing the accounts does not by itself satisfy the Corporation Tax filing obligation — and filing a tax return does not satisfy the accounts filing requirement.

In most cases you will need a complete record of income and expenditure for the period, bank and credit card statements, sales and purchase invoices, details of any assets bought or sold, payroll and employee information, loan and director's account balances, share capital details, and the previous year's accounts where they exist. It also helps to know whether anything unusual happened during the period — a new loan, a change in ownership, or a significant one-off transaction. The cleaner and more complete the underlying records, the more straightforward the preparation tends to be, and the easier it is to answer any questions that come up along the way.