£595 fixed price. Balance sheet only. No P&L public. Fastest turnaround 2-3 days. Perfect for UK's smallest companies.
Must meet 2 of 3 criteria below. If you exceed 2 thresholds, you're a small company (£750 pricing).
Annual turnover must not exceed £632,000. Includes all revenue (sales, services, grants, investment income). VAT-exclusive figure.
Total assets (fixed assets + current assets) must not exceed £316,000. Gross assets before liabilities deducted.
Average number of employees during the year must not exceed 10. Full-time equivalents (FTE). Directors count if salaried.
Must meet 2 of 3 criteria. Example 1: Turnover £700k, assets £250k, employees 8 → Exceeds turnover (1 threshold), meets assets + employees (2 thresholds) = Micro-entity qualifies (£595). Example 2: Turnover £700k, assets £400k, employees 8 → Exceeds turnover + assets (2 thresholds) = Small company (£750 pricing). Borderline? Send us your accounts for free assessment (email: hello@digitalreporting.co.uk). First-year companies: Year 1 automatically qualifies (no prior year to compare). Year 2+: Must meet thresholds in 2 consecutive years to maintain micro-entity status (if breach one year, still micro-entity until breach 2 years running).
Everything you need for compliant HMRC + Companies House filing. Balance sheet only—no P&L public.
Both are legal. Micro-entity saves £155 (£595 vs £750) but discloses less information publicly.
| Feature | Micro-Entity (FRS 105) | Small Company (FRS 102) |
|---|---|---|
| Our Pricing | £595 fixed Cheapest option |
£750 fixed £155 more expensive |
| Public Filing (Companies House) | Balance sheet only P&L stays private (not on public record) |
Abridged or Full accounts Abridged: No P&L public. Full: Everything public. |
| Notes to Accounts | Minimal notes Accounting policies, related parties, directors' advances (if any). Typically 1-2 pages. |
Full notes required Detailed breakdowns (tangible assets, debtors, creditors, provisions, etc.). Typically 5-10 pages. |
| Directors' Report | Optional (exempt) Micro-entities not required to file directors' report. |
Required (unless abridged) Directors' report mandatory for full accounts. Abridged can omit. |
| Cash Flow Statement | Not required Micro-entities exempt from cash flow statement. |
Not required (small exempt) Small companies also exempt from cash flow (only medium/large need it). |
| Accounting Standard | FRS 105 Simplest UK GAAP. Fewer disclosure requirements. |
FRS 102 (Section 1A) Small entities reduced disclosure. More detailed than FRS 105. |
| Audit Requirement | Exempt (if qualify) Micro-entities automatically exempt (no audit needed unless Articles require it). |
Exempt (if qualify) Small companies also exempt (turnover ≤£10.2m, assets ≤£5.1m). |
| Privacy vs Disclosure | Maximum Privacy Only balance sheet public. Competitors can't see P&L, turnover, gross profit. |
Less Privacy Abridged: No P&L but turnover disclosed in notes. Full: Everything public. |
| HMRC Filing | Full accounts to HMRC HMRC gets balance sheet + full P&L (CT600). Only CH filing is balance sheet-only. |
Full accounts to HMRC HMRC gets everything (balance sheet, P&L, notes). Same as micro-entity. |
| Who Should Choose This? | • Qualify as micro-entity (meet 2/3 thresholds) • Want maximum privacy (no P&L public) • Simple accounts (no complex transactions) • Cost-sensitive (save £155) |
• Exceed micro-entity thresholds (must use small) • Want full disclosure (show financial strength) • Complex transactions (require FRS 102) • Bankers/investors request full accounts |
Real-world examples of companies that qualify for £595 micro-entity pricing.
Outcome: Micro-entity pricing £595. Balance sheet filed to CH (no P&L public). Full P&L filed to HMRC with CT600. Simple 2-page accounts (balance sheet + 1 page notes). Turnaround: 2 days. Perfect for sole director consultancies wanting privacy.
Outcome: Micro-entity pricing £595 (meets 3/3 thresholds—all under limits). Single buy-to-let property. Accounts show: Fixed assets £280k (property at cost), debtors £3k (rent arrears), cash £5k, equity £288k. Notes: Depreciation policy, related party (director loan). Keeps rental yield private (competitors can't see £48k income on £280k asset).
Outcome: Micro-entity pricing £595 (meets 3/3 thresholds—all just under limits). Amazon/eBay seller with inventory. Accounts show: Stock £60k, debtors £15k (Amazon payments in transit), cash £20k, creditors £40k (suppliers), equity £55k. Privacy benefit: Competitors can't see £580k turnover or profit margin (P&L stays private on CH). HMRC sees full P&L for tax.
Outcome: Still qualifies as micro-entity (meets 2/3: turnover + employees, only exceeds assets). Pricing: £595. But accountant may recommend Small Company filing (£750) if portfolio grows. Why? Assets £420k borderline—next year could exceed £500k (then must file as small for 2 years). Considerations: FRS 105 investment accounting vs FRS 102 fair value—discuss with accountant.
Yes, it's optional. Micro-entity regime is a choice, not mandatory. If you qualify but prefer FRS 102 (small company standard), you can file full/abridged accounts instead. Reasons to file as small instead of micro: 1) Show financial strength (disclose turnover to impress lenders/investors), 2) FRS 102 accounting treatment preferred by your accountant (investment property fair value, etc.), 3) Consistency with group companies (if parent/subsidiaries file as small, easier to keep all entities on same standard). Cost: £750 (small company pricing) vs £595 (micro-entity). Extra £155 for full FRS 102 accounts. Decision: Discuss with accountant—they'll advise which standard suits your needs. Once you choose micro-entity, you can switch to small next year (no commitment). We handle both—just tell us your preference during consultation.
One-year breach doesn't disqualify you—must exceed thresholds for 2 consecutive years. Example: Year 1 (2023): Micro-entity (turnover £500k, assets £250k, employees 8). Year 2 (2024): Exceed thresholds (turnover £800k, assets £400k, employees 12) → Still file as micro-entity (first breach, allowed). Year 3 (2025): Still exceed thresholds (turnover £850k) → Must file as small company (2 years running breach). Protection works both ways: If growing, you stay micro-entity for 1 extra year. If shrinking (reduce turnover), you stay small for 1 extra year. This prevents companies flip-flopping annually. Pricing impact: Year 2 (first breach): £595 micro-entity pricing. Year 3 (second breach): £750 small company pricing (£155 increase). We'll notify you if your accounts indicate you're exceeding thresholds—gives you time to prepare for next year's higher price.
Depends what bank means by "full accounts." Micro-entity accounts are full statutory accounts (legally compliant, filed with HMRC + CH). BUT banks often want more detail than public filing shows. What banks typically want: 1) Balance sheet ✅ (micro-entity includes this), 2) Profit & Loss statement ❌ (not on public record, but HMRC receives it—we can provide PDF), 3) Notes to accounts ⚠️ (micro-entity minimal notes—bank may want detailed breakdowns). Solution: We provide two versions for micro-entity clients: Public filing (balance sheet only—goes to CH), Bank version (balance sheet + P&L + detailed notes—you give to bank, not public). Bank version included free (no extra charge). Same iXBRL file, just provide PDF with P&L visible. Bank satisfied, public still sees balance sheet only. Alternative: If bank insists on FRS 102 (full small company accounts), switch to £750 pricing (files full accounts publicly). Rare—most banks happy with P&L PDF.
Charities: No, micro-entity regime not available. Charities must follow Charity SORP (FRS 102) regardless of size. Even tiny charities (£10k income) must file full accounts with activity statement, trustees' report, public benefit disclosure. Charity pricing: £950 (see Charity SORP pricing page). Why? Charity Commission transparency requirements override micro-entity exemptions. Public benefit reporting mandatory. CICs (Community Interest Companies): No, also excluded from micro-entity regime. CICs must file: 1) Full accounts (balance sheet + P&L), 2) CIC report (community benefit delivered, asset lock, stakeholder engagement), 3) Community Interest Test statement. CIC pricing: £850 (small CIC) or custom quote (medium/large CIC). Why? CIC regulator requires transparency (public interest entities). Who can use micro-entity? Standard private limited companies (Ltd) only. Excludes: Charities, CICs, PLCs (public limited), banks, insurance companies, subsidiaries of large groups (if parent is medium/large, subsidiaries must file full accounts even if small).
£595 fixed. Balance sheet only. 2-3 days. Maximum privacy. Perfect for UK's smallest companies. Get started today.
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