Key takeaways

  • A company is a micro-entity if it meets any two of: turnover of £1 million or less, a balance sheet of £500,000 or less, and 10 employees or fewer.
  • A micro-entity can file only its balance sheet and balance sheet notes at Companies House, leaving the profit and loss account off the public record.
  • The balance sheet must carry a statement above the director's signature that the accounts were prepared under the micro-entity provisions.
  • Charities, investment undertakings, financial holding undertakings, insurers and companies included in consolidated group accounts cannot use the micro-entity rules.
  • A private company must file accounts with Companies House within 9 months of its accounting reference date; first accounts usually have 21 months from incorporation.
  • Filing late costs a private company £150 to £1,500, and the penalty doubles if accounts are late two years in a row.
  • On 23 October 2026 the government paused the plan to make micro-entities file their profit and loss account from April 2028.
  • From 1 April 2028 all companies, including micro-entities, must file accounts with Companies House using commercial software in iXBRL format.

Micro-entity accounts are the simplest statutory accounts a UK company can prepare. A company that meets two of the three micro-entity tests can prepare a short balance sheet and profit and loss account under FRS 105, then file only the balance sheet at Companies House. You still send the full accounts to HMRC with the Company Tax Return and to your shareholders.

Does your company qualify as a micro-entity?

Your company qualifies if it meets any two of the three tests below. These are the thresholds for accounting periods starting on or after 6 April 2025, as set out on GOV.UK.

TestMicro-entity limit
Turnover£1 million or less
Balance sheet total£500,000 or less
Average employees10 or fewer

The older figures of £632,000 turnover and £316,000 balance sheet still appear on some websites. They applied to periods starting before 6 April 2025. For the full small, medium and large tests, see our guide to company size thresholds.

Which companies cannot use the micro-entity rules?

Some companies are barred even if they are small enough. Section 384B of the Companies Act 2006 excludes a company that, at any time in the year, is:

  • excluded from the small companies regime under section 384 (for example, a public company)
  • an investment undertaking or a financial holding undertaking
  • a credit institution or an insurance undertaking
  • a charity
  • a parent preparing group accounts, or a company included in consolidated group accounts

If any of these applies, use the small company rules under FRS 102 Section 1A instead.

What goes into micro-entity accounts?

Micro-entity accounts contain a balance sheet, a profit and loss account and a small set of prescribed notes. Companies House’s Life of a company guidance, updated 23 October 2026, lists the contents:

  • a balance sheet in one of the prescribed formats, with any footnotes
  • a profit and loss account in the prescribed format
  • any notes to the accounts
  • an auditor’s report, unless the company claims the small company audit exemption

The balance sheet must carry a statement in a prominent position above the director’s signature. It says the accounts have been prepared in accordance with the micro-entity provisions. The law presumes that accounts meeting the micro-entity minimum requirements give a true and fair view.

Micro-entities that choose the regime must follow FRS 105, the Financial Reporting Council’s standard for micro-entities. The FRC’s current edition is dated September 2024. FRS 105 does not allow fair value accounting, so investment property is held at cost less depreciation.

What do you file with Companies House and HMRC?

At Companies House you can file only the balance sheet and its notes. This is called filleting. The ICAEW says notes about the balance sheet, including the average number of employees, must still be filed. Micro-entities cannot file abridged accounts.

HMRC gets more. You send the full statutory accounts, including the profit and loss account, with the CT600 Company Tax Return. Your shareholders must also receive a copy.

WhoWhat they receiveDeadline
Companies HouseBalance sheet and notes (filleted)9 months after year end
HMRCFull accounts with the CT60012 months after year end
ShareholdersFull statutory accountsBefore the Companies House filing

Corporation Tax is due 9 months and one day after the end of the accounting period, which is earlier than the return. See our CT600 guide for the tax side.

How to file micro-entity accounts

You can file micro-entity accounts through Companies House WebFiling or through commercial software until 31 March 2028. HMRC’s joint online service for accounts and the Company Tax Return closed on 31 March 2026.

  1. Check you qualify. Confirm two of the three tests and that no exclusion applies.
  2. Prepare the accounts under FRS 105. Include the balance sheet statement above the signature.
  3. Get director approval. A director must approve and sign the balance sheet.
  4. Send copies to shareholders.
  5. File at Companies House. Use WebFiling or software, with the company authentication code.
  6. File the CT600 with HMRC. Attach the full accounts and computations in iXBRL using software.

For screen-by-screen help, read how to file accounts with Companies House.

Deadlines and penalties

A private company has 9 months from its accounting reference date to file. First accounts covering more than 12 months are due by the later of 21 months from incorporation or 3 months from the accounting reference date.

Time latePenalty for a private company
Up to 1 month£150
1 to 3 months£375
3 to 6 months£750
More than 6 months£1,500

The penalty doubles if accounts are late two years in a row. More detail is in Companies House late filing penalties.

What changes in April 2028?

Two changes were planned for April 2028; only one is going ahead. On 23 October 2026 Companies House said the plan to make micro-entities and small companies file a profit and loss account is paused. Filleting stays available.

Software-only filing is going ahead. From 1 April 2028 every company must file accounts with Companies House in iXBRL format using commercial software, and web and paper accounts filing will close. Our news story on the P&L filing pause covers the full package.

What to do now

  • Check your last two years against the 6 April 2025 thresholds.
  • If you file through WebFiling, move to iXBRL software well before 1 April 2028.
  • Diary 9 months after your year end for Companies House and 12 months for HMRC.

Frequently asked questions

Do micro-entities have to file a profit and loss account?

Not at Companies House. A micro-entity can file only its balance sheet and notes, and the plan to require the profit and loss account from April 2028 was paused on 23 October 2026.

Can a micro-entity file abridged accounts?

No. Abridged accounts are only for small companies under FRS 102 Section 1A. A micro-entity files either its full accounts or filleted accounts.

Do micro-entity accounts need an audit?

Usually not. Most micro-entities claim the small company audit exemption, so no auditor’s report is needed.

Can a charity use micro-entity accounts?

No. Section 384B of the Companies Act 2006 excludes charities from the micro-entity provisions.

Does HMRC accept filleted micro-entity accounts?

No. HMRC needs the full statutory accounts, including the profit and loss account, with the CT600.

Can I still use WebFiling for micro-entity accounts?

Yes, until 31 March 2028. From 1 April 2028 accounts must be filed using commercial software.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.