Checked against GOV.UK and Companies House guidance · Updated 6 November 2026
Who can use micro-entity accounts?
A company is a micro-entity if it meets at least two of three conditions. The limits went up for accounting periods starting on or after 6 April 2025, according to Companies House's accounts guidance (updated 23 October 2026):
| Condition | Micro-entity limit | Before 6 April 2025 |
|---|---|---|
| Turnover | £1 million or less | £632,000 |
| Balance sheet total | £500,000 or less | £316,000 |
| Average employees | 10 or fewer | 10 |
After its first year, a company has to meet the conditions in the current year and the one before. Some companies can't be micro-entities at any size, including charities, PLCs and companies that prepare group accounts. The guide to micro-entity thresholds works through the edge cases.
What do micro-entity accounts contain?
The accounts prepared for shareholders include a balance sheet, a profit and loss account and notes. The copy filed at Companies House can be shorter:
- Balance sheet in the micro-entity format, with last year's figures.
- The micro-entity statement, placed prominently above the director's signature and printed name.
- Audit exemption statements under section 477 and the directors' responsibilities.
- Notes, including the average number of employees and any guarantees or commitments.
The profit and loss account and directors' report can be left out of the filed copy. In June 2026 the government planned to make small companies and micro-entities file the profit and loss account from April 2028, but paused that on 23 October 2026.
How does FileMyLtd prepare them?
- Start from the register. Company details, directors and dates come from Companies House, and last year's figures from your previous accepted accounts.
- Enter this year's totals. Fixed assets, debtors, cash, creditors, share capital and reserves, each with a short explanation of what belongs in it.
- See the checks. The balance sheet must balance, the size limits must be met, and the period must be valid. Problems are explained in plain English.
- Validate the iXBRL. The accounts are tagged with the current FRC taxonomy and validated with Arelle, an open-source XBRL processor, before you approve them.
- Approve, then file twice. The accounts go to Companies House, and the same figures feed your CT600 Company Tax Return to HMRC.
How do micro-entity accounts link to corporation tax?
HMRC needs the company's accounts with the CT600, in iXBRL, and the tax is worked out from the profit in those accounts. Profits up to £50,000 pay 19%, profits over £250,000 pay 25%, and marginal relief applies in between. Try the corporation tax calculator to see the figure for your profit.
What FileMyLtd doesn't cover
FileMyLtd is built for simple companies. It doesn't prepare small-company full accounts, group accounts, audited accounts or LLP accounts, and it doesn't do bookkeeping. A company that has outgrown the micro-entity limits, or has complex tax affairs such as R&D claims, is better served by an accountant.