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Micro Entity Accounts

A micro-entity or micro company is a small private limited company. If your company is this type, you can prepare and submit micro-entity accounts to Companies House instead of a full set of annual accounts.

These accounts are in a simplified format that can save you time gathering the necessary information.

Micro Entity Accounts

FAQ's

To qualify as a micro business, you must meet at least two of these conditions:

  • Annual turnover not more than £632,000
  • Balance sheet total not more than £316,000
  • No more than 10 employees

Under government regulations, micro-entity accounts are exempt from some of the financial reporting requirements of company year-end accounts.

Certain businesses cannot apply to be micro-entities. These are:

  • Public limited companies
  • Limited Liability Partnerships (LLPs)
  • Not-for-profits

A company that is a subsidiary included in a consolidated group’s full statutory accounts cannot qualify as a micro-entity.

A parent company can only submit micro-entity accounts for itself if it qualifies individually as a micro-entity.

Under the Small Companies (Micro Entities’ Accounts) Regulations 2013, companies that qualify as micro-entities are exempt from some financial reporting requirements.

When you prepare and file micro-entity accounts under these regulations, they are a simplified version of full annual company accounts.

Micro-entity accounts are still statutory under the Companies Act. Under these regulations, ALL companies must prepare and file annual accounts, whether these are full or abridged.

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Micro-entity accounts must include:

  • Simplified profit and loss account
  • Simplified balance sheet

Some micro-entities will also need to include:

  • Simplified auditor’s report

You don’t need to submit a director’s report. Many micro-entities are also exempt from being audited. If this exemption applies to you, you won’t need to submit an auditor’s report either.

You will need to prepare simplified versions of:

  • Profit and loss account
  • Balance sheet

You will also need to prepare and submit a simple version of an auditor’s report UNLESS your company is exempt from auditing.

To be exempt, your company must be classed as small, as well as qualifying for micro-entity status.

A small company must meet at least two out of these three criteria:

  • Turnover of £10.2 million or less
  • Balance sheet of £5.1 million or less
  • 50 employees or under

To complete your micro-entity accounts you do not need to include a director’s report.

We can prepare and file your micro-entity accounts at Companies House for you. We do this electronically, submitting your completed accounts online.

You do not need to prepare and file a director’s report with your micro-entity accounts.

However, before doing your annual accounts you must make sure your company qualifies as a micro-entity.

If you prepare and file micro-entity accounts, these include simplified versions of your profit and loss accounts and balance sheet.

But this isn’t the same as submitting a full set of abridged accounts.

Abridged accounts include:

  • Simplified balance sheet with related notes
  • Simplified profit and loss accounts
  • Director’s report and signature

They don’t include a breakdown of fixed assets, debtors and creditors.

But for micro-entity accounts, you do not need a director’s report and you can prepare your balance sheet and profit and loss account with even less information than what you’d include in an abridged account.

Remember, to file micro-entity accounts, you must meet at least two out of these three criteria:

  • Turnover not more than £632,000
  • Balance sheet total not more than £316,000
  • No more than 10 employees

Eligibility for filing accounts as a micro-entity or small entity differs.

To file simplified, micro-entity accounts your company must meet two of these criteria:

  • Turnover not more than £632,000
  • Balance sheet total not more than £316,000
  • No more than 10 employees

To file abridged, small company accounts your company must meet two of these criteria:

  • Turnover not more than £10.2 million
  • Balance sheet total not more than £5.1 million
  • No more than 50 employees

File Micro Entity Accounts with Venn Accounts

Based in London, but operating throughout the UK via the cloud, Venn Accounts combine a personal approach with modern, electronic technology.

We provide our clients with customers full access to our range of dedicated services wherever they’re based – including our micro accounts service.

To speak to one of our team about micro-entity accounts, please contact us.

Traditional Accounting With Clear Principles

Operating from our London head office, Venn Accounts a traditional accounting firm. We are committed to ensuring all our clients are completely clear about what we can do for them, while fully supporting them every step of the way.

Contact us and speak to a member of our team about our annual account service.

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