What is a micro-entity company?

By The Micro Entity Accounts team · Qualified UK accountants · Updated 9 November 2026

What does micro-entity mean?

In UK company law, companies are sorted into size bands. The smallest band is called a micro-entity. A company in this band is allowed to prepare and file much simpler annual accounts than a larger company.

It is not a different kind of company. Your company is still a private limited company with the same duties as any other. Micro-entity simply describes how small it is and which accounting rules it may use.

The three size limits

• Turnover: £1 million or less in the financial year.
• Balance sheet total: £500,000 or less. This is the value of everything the company owns before deducting what it owes.
• Employees: an average of 10 or fewer over the year.

A company only has to meet two of the three. Most one-person companies, contractor companies, small property companies and online sellers are well inside all three limits.

What accounts does a micro-entity file?

A micro-entity files accounts under FRS 105, the simplest accounting standard. These accounts are shorter than the accounts of a larger company and include only what the law requires.

The accounts are filed at Companies House. Separately, the company files a Company Tax Return with HMRC, which works out the Corporation Tax it owes.

Why it matters to you

Simpler accounts mean less preparation and a lower accountancy fee. They also reduce the chance of errors, because there is less to get wrong. For a small company, that usually means the same legal protection and filing duties at a much lower cost.

You still need to keep proper records, pay tax on time and meet your deadlines.

How to check whether your company qualifies

Use our micro-entity eligibility calculator to test your figures. Not every company can use the rules, so we also confirm eligibility when you order our micro-entity accounts service.

If you are close to a limit, read our guide on micro-entity vs small company accounts.

Deadlines still apply

Being a micro-entity does not change your dates. Accounts are due at Companies House 9 months after the financial year end, and first accounts 21 months after registration. The Company Tax Return is due 12 months after the period ends. See the filing deadlines guide.