Changes planned to micro-entity filing requirements
While the effective date is as yet unknown, legislation changing filing requirements for micro-entities has been passed into law. Micro-entities will be required to file their profit and loss account. However, the legislation includes provisions such that the profit or loss account, or parts thereof, may not be made publicly available. Micro-entities will still have the option not to prepare or file a directors’ report.
Frequently asked questions
- 1. In a nutshell, what does a micro-entity need to file at Companies House?
- 2. Can a micro-entity take advantage of the exemption available under s444 and not file the profit and loss account?
- 3. Which notes do I need to include if I decide not to file the profit and loss account?
- 4. Can I exclude details of employee numbers from the ‘filleted’ accounts?
- 5. Do the members need to approve the ‘filleted’ accounts before the accounts are filed?
- 6. Do I need to include the audit report in the accounts filed at Companies House?
- 7. This all sounds quite complex to me. Is there a concise summary showing what needs to be filed with Companies House in different situations?
- 8. Where can I find examples of the various statements and notes that I may need to include in the accounts filed at Companies House?
- 9. Are any additional resources available?
Appendix 1 - Common scenarios under the Micro-Entities regime
The following table does not identify all the statements that may be required in accounts prepared under the micro-entities regime. Instead, it focuses on any additional statements and notes that may be required in the accounts filed at Companies House, depending on the individual circumstances of the micro-entity.
Full accounts prepared1 |
Micro entity is audited |
Filing filleted accounts |
Accounts to be delivered at Companies House |
Additional statements and notes required in accounts delivered to Companies House2 |
|
Scenario 1 |
Yes |
No |
No |
Full accounts |
None |
Scenario 2 |
Yes | Yes | No | Full accounts and the audit report |
None |
Scenario 3 |
Yes | Yes | Yes | Full accounts excluding profit & loss account and any related notes (Note: filing the audit report is not required) |
Balance sheet delivered to Companies House must contain a statement that the annual accounts have been delivered in accordance with small companies regime |
Scenario 4 |
Yes | No | Yes | Full accounts excluding profit & loss account and any related notes |
Balance sheet delivered to Companies House must contain a statement that the annual accounts have been delivered in accordance with small companies regime |
1 Unlike small entities, a micro-entity does not have the option to prepare and file abridged accounts.
2 As noted in question 4, all micro-entity accounts must include a balance sheet statement that the accounts have been prepared in accordance with the provisions available to micro-entities [CA 2006 s414(3)]
Appendix 2 - Example statements for inclusion in the accounts
Example statement: applying the micro-entities regime
These accounts have been prepared in accordance with the provisions available to micro-entities.
Example statement: balance sheet wording when profit and loss account not filed
These accounts have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
In accordance with those provisions the profit and loss account has not been delivered to the Registrar of Companies.