FRS 105 Micro Entity Accounts in Swinton

No. A company that qualifies as a micro-entity can choose how it prepares its accounts, and the micro-entities regime is one option rather than a requirement. If your company qualifies and chooses that regime, FRS 105 is the standard it applies; if it does not choose the regime, it will generally prepare accounts under FRS 102, including the reduced disclosure version in FRS 102 Section 1A for small companies. The choice matters because FRS 105 is deliberately simpler — less disclosure and fewer accounting policy options — while FRS 102 gives more flexibility in areas such as revaluations and deferred tax. Lenders, investors, group companies and anyone relying on the accounts may have a view on which is more suitable, so it is worth deciding deliberately rather than by default.

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 during the period. Meeting those conditions is the starting point rather than the whole answer, because other rules and exclusions apply and some companies are not eligible for the micro-entities regime at all. Where an accounting period is longer or shorter than 12 months, the thresholds work differently, which is common for a first set of accounts. We check the specific position for your company and period before confirming that FRS 105 is available to you.

Both are UK financial reporting standards, but they are aimed at different sizes of company and produce very different accounts. FRS 105 is the standard for qualifying companies that choose the micro-entities regime: it is short, uses a simpler measurement basis, and requires limited disclosure, so the resulting FRS 105 financial statements are usually brief. FRS 102 is the fuller standard, used by companies outside the small companies regime, with FRS 102 Section 1A offering reduced disclosure for small companies within it. In practice, FRS 102 permits more accounting options — such as fair value and revaluation in certain cases — and requires more notes. Choosing between them is usually about who will read the accounts and what they need from them.

Yes — if your company is required to deliver annual accounts, those accounts must be filed at Companies House by the deadline that applies to your accounting period, whether they are prepared under FRS 105 or another framework. What can differ is the version that reaches the public register: current rules allow a shorter form of micro-entity accounts to be filed in some circumstances, and the filing rules in this area are changing. It is worth separating this in your mind from tax: filing accounts at Companies House and filing a Corporation Tax Return with HMRC are different obligations with different deadlines. We confirm the filing position that applies to your company when the accounts are prepared, rather than relying on general assumptions.

Yes, they are two distinct pieces of work. Your FRS 105 Micro Entity Accounts are the financial statements prepared under the micro-entities regime, and they are filed at Companies House. A Corporation Tax Return, usually submitted as a CT600, is a tax filing made to HMRC, and it is based on a tax computation rather than on the accounts alone. The accounts figures are often the starting point for that computation, but tax rules add items, disallow certain costs and apply reliefs and allowances that do not appear in the accounts at all. Preparing compliant accounts does not, by itself, complete your Corporation Tax obligations.

It can, if it qualifies as a micro-entity and chooses to apply the micro-entities regime — but that is a question of fact for your company, not something that follows automatically from being newly incorporated. A first accounting period is often longer or shorter than 12 months, which affects how the size conditions are assessed, and the figures available in the first period may be limited. New companies also have to consider what the accounts are for: if a bank, investor or parent company needs more detailed information, a different framework may be more appropriate. We can look at your first period and advise on the framework that fits, then prepare the accounts on that basis.

We generally need your bookkeeping or accounting records for the period, bank statements and reconciliations, sales invoices or summaries of income, purchase invoices and receipts, payroll information if you employ staff, and details of any assets bought or sold. It also helps to have information on stock or work in progress at the period end, loan and lease agreements, VAT returns where relevant, director's loan account movements, and any changes in share capital. Your previous year's accounts are useful for consistency, and we will confirm your accounting period dates and the framework being applied. The more complete the records, the smoother the preparation — but if your records are in a less tidy state, that is something we can work through with you.

Company law reform is introducing changes to how accounts are filed at Companies House, including a move towards accounts being delivered in a structured, software-based format rather than through existing filing routes. There is also ongoing discussion and implementation around what small and micro-entity accounts must include, including profit and loss information for some filers. These changes are being brought in progressively, so the exact requirements depend on your accounting period and the stage of implementation at the time you file. We confirm the position that applies to your company's filing as part of the accounts work, rather than assuming the current process will remain unchanged.