Micro-entities

Sage Final Accounts can help you prepare final accounts for micro-entities.

In November 2013, the UK Government approved regulations to introduce simpler reporting rules for a new sub-classification of small company known as a micro-entity.

Micro-entity accounts require a much-reduced amount of information to be reported than that included in small company accounts.

The legislation came into force on 1 December 2013 and is effective for financial years ending on or after 30 September 2013, where the company’s financial statements are filed at Companies House on or after 1 December 2013.

A company meets the qualifying conditions for a micro-entity if it meets at least two out of three of the following thresholds:

  • Turnover: Not more than £632,000
  • Balance sheet total: Not more than £316,000
  • Average number of employees: Not more than 10

When preparing micro-entities, you’ve two options of compliance pack.

The new FRS 105 standard is specifically for micro-entities reporting under the new UK GAAP and is based on FRS 102 taking into account the legal requirement of the micro-entities regime.

A micro-entity applying the micro-entities regime needs to apply FRS 105 for accounting periods beginning on or after 1 January 2016. Early application is permitted.

When creating a set of accounts, choose either Micro-entity (FRSSE 2015) or Micro-entity (FRS 105).

See FRS 105 reference to learn about the differences between the two types of micro-entity.

If this article hasn’t answered your question, please consider searching the help or contacting us.