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Micro Entity Accounts: A Simple Guide for Small Businesses in the UK
If you run a small company in the UK, you may have come across the term “micro entity accounts.” But what exactly does it mean, who qualifies, and why should you care? In this article, we’ll break down what micro entity accounts are, the benefits of filing them, and how Micro Entity Accounts can help you stay compliant—without the stress.
What Are Micro Entity Accounts? In the UK, micro entity accounts are a simplified form of statutory accounts designed for the smallest companies. Introduced by the Companies Act 2006 and later updated under the FRS 105 accounting standard, these accounts make it easier for very small companies to prepare and file their financial statements.
A company qualifies as a micro entity if it meets at least two of the following conditions:
✅ Turnover of £1M or less ✅ Balance sheet total of £500,000 or less ✅ No more than 10 employees
This means thousands of small businesses—from freelancers to family-run limited companies—can take advantage of micro entity accounts to reduce administrative work and cut down on costs.
What’s Included in Micro Entity Accounts? Micro entity accounts contain fewer detailed disclosures compared to full statutory accounts. Typically, they include:
A simplified balance sheet
A profit and loss account (optional for Companies House but required for HMRC)
A straightforward directors’ report (optional)
Minimal notes to the accounts
By using the micro-entity provisions, you can file abridged accounts with Companies House, keeping your financial information more private while meeting all legal obligations.
Benefits of Filing as a Micro Entity Here’s why so many small businesses choose to file micro entity accounts:
✅ Simpler Requirements: Less paperwork and fewer disclosures mean faster preparation. ✅ Cost-Effective: Saves you money on accounting fees and time spent compiling unnecessary details. ✅ Privacy: Less financial information is made public at Companies House. ✅ Full Compliance: Meet legal obligations and avoid penalties.
Why Professional Help Still Matters While micro entity accounts are simpler than full accounts, they still need to be accurate and submitted on time. Mistakes can lead to fines, rejected submissions, and unnecessary stress.
At Micro Entity Accounts, we specialise in preparing and filing micro entity accounts for UK small businesses. Our team ensures that your accounts meet the latest requirements under FRS 105 and are filed correctly with both Companies House and HMRC.
How Micro Entity Accounts Can Help You When you choose us, you get more than just account filing:
✔️ Expert Advice: We make sure you understand your obligations. ✔️ Accurate Filing: No missed deadlines, no rejected submissions. ✔️ Fixed Fees: Affordable pricing with no hidden surprises. ✔️ Year-Round Support: We’re here whenever you need us, not just at year-end.
Get Peace of Mind Today If your small business qualifies for micro entity accounts, there’s no reason to struggle with the paperwork on your own. Let our experts handle it, so you can focus on what you do best—running and growing your business.
📞 Contact Micro Entity Accounts today for a free consultation and see how easy compliance can be.
