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.
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