Micro-entity or small company accounts: which regime applies?

Micro-entity accounts

For accounting periods beginning on or after 6 April 2025, a company can qualify as a micro-entity if it meets at least two of these limits: turnover of £1 million or less, balance sheet total of £500,000 or less, and 10 employees or fewer on average.

Small company accounts

For accounting periods beginning on or after 6 April 2025, a company can qualify as small if it meets at least two of these limits: turnover of £15 million or less, balance sheet total of £7.5 million or less, and 50 employees or fewer on average.

What the regime changes

The regime affects the format and disclosures in the accounts. It does not remove the need to keep complete accounting records or file on time.

Some companies cannot use the micro-entity or small-company provisions, including certain group structures and excluded company types.

What to gather before year end

Bring together the bank reconciliation, sales and purchase records, payroll reports, fixed-asset list, stock information, loans, director balances and evidence for unusual transactions.

Ask your accountant which thresholds and accounting-period rules apply before you choose a filing format.

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