A quick check of whether your company qualifies as a micro-entity, and what it means for filing.
Micro-entity is the smallest company size category, and it lets you file the simplest accounts. Many one-person and small family companies qualify without realising it.
The thresholds
Your company is usually a micro-entity if it meets at least two of these three in a year:
- Turnover not more than £1 million
- Balance sheet total not more than £500,000
- No more than 10 employees on average
What it means
If you qualify, you can prepare micro-entity accounts under FRS 105, which are simpler than small company accounts and reveal less on the public record. You do not have to use the micro-entity rules even if you qualify.
Some companies cannot be micro-entities
A few types are excluded, such as charities, certain financial companies, and companies in a group that prepares group accounts. If in doubt, check the current Companies House guidance.