Going concern and off balance sheet notes in micro-entity accounts

Short version. FRS 105 micro-entity accounts need only a short set of notes. A going concern note is not one of them: the directors must assess going concern, but the standard does not ask for a statement. An off balance sheet note is required only where the company actually has material arrangements that are not on its balance sheet, so a nil statement is never compulsory. Both notes are common in accountant-prepared accounts all the same, and a company with net liabilities often wants the going concern position stated. You can leave out a voluntary going concern note or nil statement. Material off balance sheet arrangements still need disclosure.

1. The notes FRS 105 requires

Section 6 of FRS 105 (September 2024 edition) lists the notes a UK micro-entity presents at the foot of the balance sheet. Paragraph 6.2 names four: off balance sheet arrangements where section 410A of the Companies Act 2006 applies, the average number of employees (section 411), advances, credit and guarantees granted to directors (section 413), and financial commitments, guarantees and contingencies. Paragraph 6.1 adds that a micro-entity is permitted, but not required, to disclose more.

Our generated accounts always carry a basis of preparation note, a statutory information note and the average number of employees. The two notes described here are added after those, numbered on, only when you choose them.

2. Going concern in micro-entity accounts

Paragraph 3.3 of FRS 105 requires the directors to assess whether the going concern basis is appropriate, looking at least twelve months ahead from the date the accounts are authorised. It does not require a note. The Financial Reporting Council confirms this in FRS Factsheet 13 (September 2025), paragraph 4.10: under FRS 105, micro-entities are not required to make specific disclosures about the going concern basis of accounting. That is different from FRS 102, which does require them.

A voluntary note is still permitted (Factsheet 13, paragraphs 4.14 and 4.15) and is common where the balance sheet shows net liabilities. The usual wording records that the directors have received confirmation of continued financial support from the shareholders or a director and consider the going concern basis appropriate. The wording is yours: we print what you type and do not judge it, infer it from the figures or add it on your behalf.

3. Off balance sheet arrangements and section 410A

Section 410A of the Companies Act 2006 applies where a company is or has been party to arrangements that are not reflected in its balance sheet and, at the balance sheet date, the risks or benefits arising from those arrangements are material. In that case the notes must state the nature and business purpose of the arrangements. A company subject to the small companies regime, which includes micro-entities, need not state the financial impact (section 410A(4)). FRS 105 repeats the requirement at paragraph 6A.1.

Where no such arrangements exist, the law asks for nothing. A line such as Off balance sheet disclosure — No is therefore a choice, not a requirement, and many filers include it for consistency with earlier years. Where arrangements do exist, describe their nature and purpose in your own words under the Custom option.

4. Matching accountant-prepared accounts

If your previous accounts were prepared by an accountant, they may have carried both notes every year. You can choose whether to repeat a voluntary going concern note or nil statement. Disclose material off balance sheet arrangements when they exist. Adding these notes does not change any figure, the Corporation Tax computation or the CT600. The same notes appear in the members' copy sent to HMRC and in the copy delivered to Companies House.

5. How to add either note

1. Open the Financial data step and expand Optional notes to the accounts. It starts collapsed, like the other optional sections.
2. Tick Include a going concern note and type the wording. Untick it to leave the note out. The text is kept in case you change your mind.
3. Under Off balance sheet disclosure choose No to print the single line Off balance sheet disclosure — No, Custom to print your own wording under an Off Balance Sheet Disclosure heading, or leave Not included.
4. Generate the free draft preview from the review page to see the notes in the accounts before you file.

Characters that cannot be carried in the filed document are removed automatically as you type or paste. Accents, currency symbols, punctuation and line breaks are kept. Each note can contain up to 4,000 characters.

The section is available in every company filing journey. If you are filing a remaining CT600 with accounts already supplied, these notes are saved with your draft but are not included in that filing. For a charity or CASC, we file the uploaded accounts unchanged. Put any required notes in that file. Text entered here is saved with your draft and is not added to the uploaded accounts.

Unincorporated clubs use a separate journey with customer-prepared accounts. Add any notes to those accounts before uploading them. See accounts for a club CT600.

6. What each regulator receives

Both notes print in the notes section of the iXBRL accounts and the matching PDF. HMRC receives the full accounts attached to the CT600. Companies House receives the same notes in the filleted copy, because section 444 lets the directors withhold the profit and loss account but not the notes. See what company accounts are public for what appears on the register.

This article is general guidance, not accounting advice. Whether to add either note is your decision. If you are unsure what the going concern position is, speak to an accountant before you file.