Audit exemption for micro-entity accounts

1. Why the options are not shown

SimpleCompanyTax is built for UK private limited companies that qualify as micro-entities. A micro-entity is a type of small company and can claim the small-company audit exemption when it meets the relevant conditions.

Our supported accounts are prepared as audit-exempt by default. Because the answers are fixed for this type of filing, we include them in your annual accounts instead of asking you to select them each time.

2. What we apply to your accounts

For every supported micro-entity filing, SimpleCompanyTax applies:

• Accounts are audit exempt: Yes
• Exemption: Section 477, small companies
• Members requested an audit under Section 476: No
• Accounts prepared under the small companies’ regime: Yes, using the micro-entity provisions

You do not need to find or select these options in the portal. They are built into the annual accounts we generate.

3. What appears in your accounts

Your annual accounts include wording to the following effect:

For the period ending [date] the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

• The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476.
• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The accounts have been prepared in accordance with the micro-entity provisions and have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the board of directors and authorised for issue on [date].

[Director’s name]
Director

For trading companies that keep the profit and loss account off the public record, the copy sent to Companies House also states that the directors have elected not to deliver a copy of the profit and loss account, as permitted by section 444 of the Companies Act 2006. HMRC still receives the full accounts, including the profit and loss account. The combined prepared-and-delivered statement is the wording Companies House asks micro-entities to use, and it appears in both copies.

4. When SimpleCompanyTax is not suitable

You should not use SimpleCompanyTax for this filing if:

• your company does not qualify as a micro-entity
• your company is not entitled to claim audit exemption
• the company’s articles require an audit
• members have validly requested an audit under Section 476
• the company is otherwise legally required to have its accounts audited

If any of these apply, you will need an accounts-preparation service that supports audited or non-micro-entity accounts. Speak to an accountant if you are unsure whether your company qualifies.

5. References

• Companies House: preparing and filing company accounts (micro-entity accounts and audit exemption).
• GOV.UK: audit exemption for private limited companies (eligibility and the required balance-sheet statement).
• Companies Act 2006, sections 414(3), 444(1)(b), 444(5), 475, 476 and 477.

This page is general guidance, not accounting or legal advice. Speak to a chartered accountant or legal adviser if you are unsure whether your company needs an audit.