How to Prepare and File Micro-Entity Accounts: A UK Guide

Micro-entity accounts are simplified annual accounts for the smallest UK limited companies that meet the eligibility criteria. 

They’re easier to prepare than full accounts, but you still need to qualify under the size thresholds (updated in 2025), meet the filing deadline, and follow the rules on what to include.

Here’s everything you need to know to file micro-entity accounts successfully.

Key points

• Micro-entity accounts can reduce what you publish publicly 🔒
  Qualifying micro-entities can file simplified accounts with Companies House, but this only affects what’s on the public record. You still need to prepare full financial information for HMRC to work out your Corporation Tax return.
• Maintain accurate bookkeeping throughout the year 📊
  Keeping your financial records up to date makes preparing your accounts much easier when the filing deadline approaches. 
• Know your Companies House deadline and avoid late penalties ⏰
  Filing your accounts late can result in penalties of up to £1,500, with higher penalties for companies that file late in two consecutive years. 
• ANNA can simplify your accounts preparation 🚀
  ANNA keeps your books organised throughout the year, so you have all the information you need on hand when your accounts are due. 

What makes a company a micro-entity?

To qualify as a micro-entity, your company needs to meet at least two of these three conditions for the financial year:

These figures apply to financial years starting on or after 6 April 2025. 

The date your financial year starts determines which thresholds apply. For example, if your financial year began in March 2025, the old thresholds apply to those accounts, even though most of the financial year falls after 6 April 2025.

🧠 Good to know

Before 6 April 2025, the thresholds were lower, at £632,000 turnover and £316,000 balance sheet total. So if your company has grown over the past couple of years, recheck whether you still fall into the micro-entity category, since the goalposts have moved in your favour.

The two-year rule

You generally need to meet or exceed the relevant size conditions for two consecutive financial years before your company moves into a different size category. This means that one unusually profitable or quiet year won’t immediately change your company's classification.

For example, if your company is classed as a micro-entity and exceeds the micro-entity limits in one year, it can usually remain a micro-entity for that year. If it exceeds the limits again in the following year, its size classification may change.

What you need to prepare

The information micro-entities prepare for Companies House and HMRC differs slightly.

What to prepare for Companies House

You typically have to prepare:

• A balance sheet in the required format, with any applicable footnotes
• Notes and disclosures that apply to your company accounts

Micro-entities are exempt from filing directors’ reports and audit reports.

Accounts filed at Companies House are publicly available, so anyone can access the information you submit. 

Your filing shows information such as assets, liabilities, and shareholders' funds, but it generally leaves out your turnover and profit. That means competitors and the public can’t see your trading performance.

What to prepare for HMRC

You’ll need to prepare a full set of accounts, including a profit and loss account, to work out your company's taxable profit and complete its Company Tax Return for HMRC. 

You’ll also need to prepare a balance sheet showing what the company owns and owes at the end of the accounting period, along with any other information needed to calculate your taxable profit. 

The financial information you use to prepare your Corporation Tax return isn’t publicly available. 

Micro-entities and FRS 105

Micro-entity accounts are normally prepared under FRS 105, the Financial Reporting Standard applicable to the Micro-entities Regime. It’s designed to simplify financial reporting for qualifying companies, with fewer accounting options than the more detailed FRS 102 framework.

However, FRS 105 also has restrictions that can affect how certain assets and transactions are presented. For example, you generally can’t revalue assets to reflect increases in their market value like you can under FRS 102.

This can matter if your company owns property, investments, or other assets that have increased significantly in value. In these cases, it may be worth considering whether FRS 102 would provide a more useful picture of the company's financial position, even though the accounts would require more work.

If your company has complex arrangements, such as unusual share structures, group transactions, or significant investments, speak to an accountant before deciding which accounting framework to use.

Getting your figures ready

Before you can prepare your accounts, you need complete, accurate records for the whole financial year. This means recording and reconciling your sales, expenses, asset purchases, and bank transactions, along with any necessary adjustments for depreciation, accruals, and prepayments.

For many small companies, this is where most of the work happens. Once your figures are correct, preparing and filing the accounts is usually simple. 

Keeping your books up to date throughout the year can save you from reconstructing months of transactions and receipts when your accounts are due.

With your bookkeeping ready, you’ll need to establish the figures that go into your accounts, including:

• Fixed assets, such as equipment and vehicles, after accounting for depreciation
• Current assets, including stock, money owed to the company, and cash in the bank
• Creditors, showing amounts due within one year and after more than one year
• Capital and reserves, including share capital and retained profit or loss

These figures feed into the balance sheet format required under FRS 105.

Also, check whether your company has any transactions or commitments that need to be disclosed in the notes to the accounts, such as directors’ loans, guarantees, and certain financial commitments. Keeping a record of these throughout the year makes it easier to identify them when preparing your accounts.

💡 Did you know? 

ANNA’s Auto Accountant automatically matches receipts to transactions and tracks your income and expenses throughout the year, helping keep your records up to date all year long.

Check your Corporation Tax position

You’ll also need to calculate your Corporation Tax before finalising your accounts. The tax charge and any Corporation Tax owed can affect the figures shown on your balance sheet.

Check that the figures in your statutory accounts and Corporation Tax return are consistent before submitting them. 

How to file micro-entity accounts with Companies House

Once you've prepared your accounts, you need to file them with Companies House. For most private limited companies, the deadline is nine months after the end of the financial year.

If these are your company’s first accounts, you usually have 21 months from the date you incorporated to file them. 

You can file your accounts online through Companies House WebFiling or use compatible accounting software that submits them for you.

Your accounting reference date is normally the last day of the month in which your company was incorporated. You can change it by filing form AA01, although changing your accounting year can also affect your Corporation Tax accounting period, so you may need to update HMRC separately.

After submitting your accounts, keep the Companies House confirmation. Don't assume that clicking submit means the filing is complete. If your accounts are rejected because of missing information or formatting problems, you still need to correct and resubmit them before the deadline to avoid a late filing penalty.

What happens if you file late?

Companies House charges an automatic penalty if you file your accounts after the deadline. 

If you file your accounts late in two consecutive financial years, the penalty for the second year is doubled.

These penalties can apply whether your company is trading or dormant.

Remember that Companies House and HMRC have separate filing and payment deadlines. A late Company Tax Return or Corporation Tax payment can result in additional HMRC penalties and interest, even if your Companies House accounts were filed on time.

Do you need an accountant to file micro-entity accounts?

Directors can prepare and file their own accounts, and for a simple company with straightforward transactions, it's possible to do this without professional help. 

Micro-entity and dormant accounts in particular are designed to be manageable without specialist accounting knowledge. However, if your company’s finances are more complex, it’s a good idea to have an accountant review your accounts before filing.

How ANNA can help with your company accounts

The hardest part of micro-entity accounts is staying on top of your records all year, not the filing itself. ANNA brings your business account, bookkeeping, and tax admin together, so you’re not piecing your finances back together when the deadline arrives.

Here’s how ANNA can help:

• Automatic bookkeeping: Have ANNA categorise your business transactions as you spend and receive money, and keep your records organised
• Receipt capture: Upload receipts and ANNA will match them to the relevant transactions, so you have a record of your business expenses
• Real-time tax estimates: See how much Corporation Tax you may owe and keep track of your tax position throughout the year
• Smart Pots: Automatically set money aside for upcoming tax bills, and avoid a large unexpected payment when Corporation Tax is due
• Business account: Manage your business income and spending from a dedicated UK business account, with your transactions feeding into your bookkeeping
• Invoicing: Create and send professional invoices, track what you're owed, and maintain organised sales records
• Expense management: Track your business spending and match receipts to it, so your records stay complete
• Tax filing: Get support with your business tax admin, with everything you need for your return close to hand
• VAT support: Handle your VAT records and returns from the same system if you're VAT-registered
• Payroll: Manage payroll alongside your other business finances, so all your admin sits together
• 24/7 support: Get help with your business finances whenever you need it, with UK-based support available around the clock 

Sign up with ANNA today and keep your books ready all year, so you’re not scrambling when your accounts are due.