What is a micro-entity in the UK?

What is a micro-entity?

A micro-entity is a very small limited company that falls below the Companies Act size thresholds for micro-entity reporting. Micro-entities can prepare simplified FRS 105 accounts rather than the fuller FRS 102 (1A) small-company accounts. You're very likely a micro-entity if you run a one-person limited company, a small consultancy, a side-hustle business, or an early-stage startup before any revenue scale. The test is about size, not legal form: a company limited by guarantee, such as a residents' management or right-to-manage company, qualifies on the same thresholds and files the same way. See companies limited by guarantee.

Eligibility criteria (micro-entity thresholds)

To qualify, your company must meet at least two out of three of these size thresholds. The limits were raised for accounting periods beginning on or after 6 April 2025.

Periods beginning on or after 6 April 2025:

• Turnover: not more than £1,000,000 (pro-rated for periods shorter than 12 months)
• Balance sheet total: not more than £500,000
• Average number of employees: not more than 10

Periods beginning before 6 April 2025, for example an overdue earlier return:

• Turnover: not more than £632,000 (pro-rated for periods shorter than 12 months)
• Balance sheet total: not more than £316,000
• Average number of employees: not more than 10

Companies that cannot be micro-entities

Even if you meet the size thresholds, some company types are excluded from micro-entity status by law:

• Charities
• Parent companies that prepare group accounts (or are required to)
• Subsidiaries included in consolidated group accounts
• Investment undertakings and financial holding companies
• Credit institutions, insurance undertakings, authorised firms

For the vast majority of single-director UK limited companies, none of these apply.

Micro-entity vs small company

All micro-entities are small companies — but not all small companies are micro-entities. Small companies that exceed the micro thresholds must prepare fuller FRS 102 (1A) accounts with more disclosures. Micro-entities get the most simplified reporting regime available in UK company law.

Filing requirements for a micro-entity

Being a micro-entity doesn't reduce what you file — it simplifies what goes in each filing:

• Annual accounts to Companies House — FRS 105, abridged balance sheet, required statements.
• Corporation tax return (CT600) to HMRC — with tax computation and iXBRL-tagged accounts.
• iXBRL accounts — digital machine-readable accounts using the FRS 105 taxonomy.

Key deadlines

• Companies House accounts: 9 months after the accounting period end.
• Corporation tax payment: 9 months and 1 day after the accounting period end.
• CT600 return to HMRC: 12 months after the accounting period end.

What micro-entity status actually simplifies

• Reduced disclosures and notes in the accounts
• Abridged balance sheet format
• No statutory directors' report required
• Simpler iXBRL tagging (FRS 105 taxonomy)

Corporation tax rules apply the same way — rate, reliefs, and deadlines don't change. The simplification is on the accounts side.

File micro-entity accounts & CT600 online

If your company qualifies as a micro-entity, you can file everything yourself — accounts and corporation tax — without paying an accountant for routine work. SimpleCompanyTax is built specifically for this case:

• Prepare FRS 105 accounts automatically from plain-English inputs.
• Generate iXBRL accounts with the correct FRS 105 taxonomy — nothing to configure.
• Submit to HMRC and Companies House in one flow — both submissions, one £25 +VAT/year micro-entity price.
• No accountant needed — inline help on every field, plain English throughout.

File micro-entity accounts & CT600 online · See pricing

Common edge cases

• Haven't traded at all? You may actually be dormant rather than a micro-entity — different filing template. See dormant accounts filing.
• Not sure you can self-file? For a simple micro-entity, you almost certainly can. Can I file company tax myself?
• Still confused by CT600? What is a CT600?