Micro-Entity Accounts: Requirements, Templates, Examples & Filing Guide

What are micro-entity accounts?

Micro-entity accountsare the simplest form of statutory annual accounts available to very small UK companies. They reduce the disclosure burden by limiting the balance-sheet detail and removing the requirement to file a full directors’ report or profit and loss account at Companies House.

Under UK law, a company qualifies as a micro-entity if it meets at least two of three size tests. For accounting periods beginning on or after 6 April 2025, those tests are:

• Turnover of £1 million or less
• Balance sheet total of £500,000 or less
• Average of 10 employees or fewer

The thresholds were raised from the previous limits of £632,000 turnover and £316,000 balance sheet total under the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024. The new limits apply to accounting periods beginning on or after 6 April 2025.

What is a micro-entity?

A micro-entity is a company that is both small enough to meet the size thresholds and not excluded from the regime. Excluded companies include public limited companies, certain regulated entities, charities, and companies that are part of an ineligible group.

Micro-entity status is determined on a two-year rolling basis for established companies. If a company exceeds the thresholds for two consecutive financial years, it must move to a larger reporting regime.

Who can prepare and file micro-entity accounts?

Any company that qualifies as a micro-entity can prepare its own accounts. There is no legal requirement to use an accountant, although professional advice is recommended where the accounts are complex or where tax optimisation is relevant.

The accounts must be prepared in accordance with FRS 105 — the Financial Reporting Standard applicable to the Micro-entities Regime. FRS 105 is issued by the Financial Reporting Council and is the designated standard for micro-entity accounts under UK GAAP.

Micro-entity accounts requirements

A compliant set of micro-entity accounts must include:

• A balance sheet in one of the prescribed formats under the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008
• A profit and loss account (required for members and HMRC; at Companies House, it may be omitted until April 2028)
• An approval statement signed by the directors
• The average number of employees during the period
• Any notes required by the relevant regulations

The accounts must give a true and fair view, which under the micro-entity regime is presumed if they include the minimum disclosures required by law. For guidance on the accounting standard, see our FRS 105 explained guide.

Micro-entity accounts format

The balance sheet follows a fixed vertical format with prescribed line items. The exact layout is set by statutory instrument, not left to company choice. Typical line items include:

• Fixed assets
• Current assets (split into stocks, debtors, cash)
• Creditors: amounts falling due within one year
• Net current assets
• Total assets less current liabilities
• Creditors: amounts falling due after more than one year
• Net assets
• Equity (share capital and retained earnings)

Footnotes to the balance sheet must disclose any charges on assets, commitments for capital expenditure, and other items required by the regulations.

What do micro-entity accounts include?

Micro-entity accounts example

A simple micro-entity with no stock and no long-term debt might present a balance sheet like this (figures illustrative):

• Fixed assets: £25,000
• Current assets: £48,000 (debtors £32,000; cash £16,000)
• Creditors within one year: £19,000
• Net current assets: £29,000
• Total assets less current liabilities: £54,000
• Net assets: £54,000
• Equity: share capital £40,000; retained earnings £14,000

In this example, turnover of £120,000 and a balance-sheet total of £54,000 are well inside the £1 million / £500,000 thresholds, so the company comfortably qualifies as a micro-entity.

Micro-entity accounts sample

A micro-entity accounts sample follows the prescribed balance-sheet format with line items in the order set by the regulations. The sample does not need to include detailed notes, comparative prior-year figures (if omitted), or a strategic report. The emphasis is on clarity and statutory minimum disclosure.

Micro-entity accounts template

Many directors and accountants start from a micro-entity accounts template. A good template includes the correct balance-sheet layout, the approval statement, and the employee-count disclosure. It saves time and reduces the risk of missing a required line.

QuickXBRL effectively acts as a dynamic template: you enter your figures and the software generates a compliant balance sheet and iXBRL file in the correct format automatically.

Can you use a micro-entity accounts template?

Yes. Templates are widely used, particularly by directors who prepare their own accounts. The key is to ensure the template matches the current statutory format and FRS 105 requirements. If a template was designed for older thresholds or an earlier version of the regulations, check it carefully before using it for a current period.

How to prepare micro-entity accounts

1. Confirm eligibility — check turnover, balance sheet total, and employee count against the current thresholds
2. Gather your records — trial balance, bank statements, fixed-asset register
3. Draft the balance sheet — use the prescribed format; ensure total assets, creditors, and net assets reconcile
4. Prepare the profit and loss account — required for members and HMRC even if omitted from the Companies House filing
5. Complete the approval statement — director name, date, and confirming body
6. Tag for iXBRL — map each figure to the correct taxonomy element. See our iXBRL tagging guide and iXBRL accounts article for the full workflow.
7. Validate — check arithmetic, units, and completeness
8. File — submit to Companies House and HMRC before the deadline

Filing micro-entity accounts

Filing micro-entity accounts means submitting your accounts to Companies House and (as part of your Company Tax Return) to HMRC. Both require iXBRL for online filing.

The filing deadline is:

• Companies House: 9 months after the accounting reference date
• HMRC: 12 months after the end of the accounting period for the CT600 return

These deadlines can differ. Always check the earlier one to avoid penalties.

Filing micro accounts at Companies House

Filing micro accounts at Companies House is straightforward with the right software. You upload your iXBRL file through the web filing service or submit directly from approved software. Companies House validates the file and either accepts it or returns an error message.

Remember that from April 2028, all accounts filings must use commercial software. The web upload service for accounts will close.

Micro-entity accounts and Companies House: what changes in 2028

From 1 April 2028, micro-entities must deliver a copy of the profit and loss account to Companies House. They will retain the right to opt out of having that P&L published on the public register. Companies House, law enforcement, and HMRC will still have access for regulatory purposes.

The shift to mandatory commercial software for accounts filing was preceded by the CATO shutdown in April 2026. For context, see our guide to the CATO shutdown and what it means for small companies.

Digital filing and iXBRL considerations

iXBRL is mandatory for digital filing. If you prepare accounts in Excel or Word, you need a conversion step. Options include:

• Purpose-built software — enter figures directly into a tagging interface
• Excel-to-iXBRL tools — map an existing spreadsheet to taxonomy tags
• PDF conversion — extract from a PDF (more work and higher error risk)

For micro-entity accounts, software-assisted tagging is by far the most reliable approach. See our iXBRL tagging guide for more on how tagging works, and our Excel to iXBRL guide if your accounts are already in a spreadsheet.

Common mistakes when filing micro-entity accounts

• Missing the eligibility two-year rule — a company that slips over the thresholds for one year may still qualify; slipping for two years triggers a regime change
• Including excluded companies — PLCs, charities, and certain regulated entities cannot use the micro-entity regime
• Wrong balance-sheet format — the layout must match the prescribed format; reordering lines can cause rejection
• Forgetting the approval statement — this is mandatory and must be signed before filing
• Arithmetic errors — net assets must equal equity; totals must reconcile
• Late filing — penalties start at £150 and increase quickly

How software can simplify preparation

iXBRL accounts software removes the manual work of formatting, tagging, and validation. You enter figures into the right fields, the software applies the correct tags and units, and you download a compliant file. For micro-entity accounts, this process can take under 30 minutes.

Software also reduces the risk of using an outdated template or missing a required disclosure — both common causes of rejection.

When an accountant may be useful

Software handles the mechanics, but an accountant adds value where:

• The company is close to a threshold and needs strategic advice on regime choice
• There are complex transactions (disposals, group arrangements, share reorganisations)
• Tax efficiency or reliefs need to be optimised
• The director prefers professional assurance on the numbers

Many accountants now use iXBRL software themselves, so the collaboration is smooth: you or your accountant prepare the figures, the software tags and validates, and the filing is submitted.