FRS 105 micro-entity accounts in Sunderland

FRS 105 accounts for Sunderland 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 Sunderland businesses: local facts

Sunderland is in the North East region. ONS figures for 2026 count 6,085 VAT- or PAYE-registered businesses in Sunderland, and 5,255 of them (86%) employ fewer than ten people. Many are small enough to use the micro-entity regime.

The largest groups of micro businesses in Sunderland are wholesale and retail (980), construction (830) and professional, scientific and technical services (635). If you work in wholesale and retail in Sunderland, 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. That puts wholesale and retail at 19% of the local micro-business base.

Zooming in, the ONS neighbourhood area around Sunderland (Sunderland 013) has 575 VAT- or PAYE-registered businesses, and 460 of them (80%) are micro businesses.

Sunderland ranks 676 of the 1105 areas we serve by number of micro businesses, and its micro share of 86% is below the 89% average across them. In construction (830 micro businesses in Sunderland), Construction Industry Scheme deductions, retentions and stage payments can distort profit, so we reconcile your CIS statements before the accounts are prepared. In professional, scientific and technical services (635 micro businesses in Sunderland), 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.