Micro Entity Accounts in London & Tax Filing

You need a simplified balance sheet and minimal notes to accompany it. The balance sheet shows your company’s assets, liabilities, and equity at your financial year end. Unlike larger companies, you don’t file a profit and loss account or directors’ report with Companies House, though you should keep these for your own records and tax purposes.

No, limited liability partnerships cannot use the micro entity accounts framework. This option is only available to private limited companies that meet the size thresholds. LLPs must follow different accounting and filing requirements set out specifically for partnerships.

A micro entity balance sheet contains your fixed assets, current assets, liabilities, and capital. It’s presented in a simplified format with far fewer line items than standard accounts. You also include brief notes covering accounting policies, guarantees, and share capital, but the detail required is minimal compared to other account types.

Yes, we prepare and file both as part of our service. Your micro entity accounts go to Companies House, while your CT600 corporation tax return goes to HMRC. We handle both submissions, ensuring the figures align and both deadlines are met. This coordinated approach prevents discrepancies and saves you managing two separate filings.

Micro entity accounts contain significantly less information and follow a simplified format. Full accounts include detailed profit and loss statements, comprehensive notes, a directors’ report, and often a strategic report. Micro entities only file a basic balance sheet with minimal notes, keeping most financial details private while still meeting legal obligations.

The turnover threshold is £1M or less for your financial year. However, you only need to meet two of the three micro entity criteria, which also include assets of £500,000 or less and 10 employees or fewer. Both the current year and previous year must satisfy these conditions.

Micro entities file an abbreviated balance sheet and limited accompanying notes with Companies House. You don’t submit a profit and loss account, directors’ report, or detailed financial breakdowns to the public register. However, you still prepare full accounts for your company records and for corporation tax purposes with HMRC.

The main benefits are reduced preparation time, lower accountancy costs, and greater privacy. Less of your financial information becomes publicly available through Companies House. The simplified format also means fewer disclosure requirements and less complex compliance. For small London businesses, this translates to meaningful time and cost savings each year.

You can legally file them yourself, but most business owners find using an accountant worthwhile. An accountant ensures your accounts are accurate, compliant, and submitted on time. They also handle your corporation tax return simultaneously and can answer questions throughout the year. The cost is usually modest compared to the time saved and mistakes avoided.

No, micro entities are exempt from including a directors’ report in the accounts filed with Companies House. This is one of the key simplifications available under the micro entity regime. You should still maintain internal records of directors’ decisions, but there’s no requirement to publish a formal report.

To qualify as a micro entity, your company must meet the size thresholds for two consecutive years. This means both your current financial year and the previous year must satisfy at least two of the three criteria. New companies can qualify in their first year, but established companies need to meet the limits for two years running before switching to micro entity accounts.

Dormant companies can file dormant accounts, which are even simpler than micro entity accounts. If your company has had no significant transactions during the year, dormant accounts are the appropriate choice. However, if your company is active and meets the size criteria, then micro entity accounts are the correct format to use.