How to file micro entity accounts (2026 update)

As a small business, you may be able to file micro-entity accounts. This could save you time and money.

Here’s how you know whether your company meets the micro-entity accounts threshold, how to prepare your accounts, and where to submit them.

What are micro-entity accounts?

Micro-entity accounts are a simple way for smaller companies to file reduced accounts.

This type of accounting aims to save time for business owners, allowing you to file accounts even if you don’t have specialist accounting knowledge.

If you want to, you can still file full accounts in the same way as larger companies.

But a big benefit of choosing to file basic micro-entity accounts is that you can submit an abridged version with a simplified balance sheet. Supplying a director’s report is also up to you, while it’s likely you’ll be exempt from auditing.

Providing less information to Companies House is not only more efficient, but it means the financial details of your business are more private. 

As your business grows or if you’re looking for investment, you may want to make more information about your company public.

Who can file micro-entity accounts?

The government describes a micro entity as a ‘very small company’. You’ll be considered a micro entity if you meet two of these three criteria:

1. A turnover of £1 million or less
2. £500,000 or less on your balance sheet
3. 10 employees or less

Even if you meet the above micro entity accounts criteria, you won’t be able to file abridged accounts if your business is any of the following:

• not-for-profit organisation
• limited liability partnership
• public limited company
• financial institution, like a lender or bank

If you don’t qualify as a micro-entity, you may still be able to file accounts as a small company. Read our guide on how to file company accounts to find out more about what you need to do and the deadlines you need to meet.

How to prepare micro-entity accounts

You have a legal requirement to file your company accounts each year, and it can be a daunting process. If you qualify, here’s a micro-entity accounts example of what you could submit:

• a simplified balance sheet – this won’t need to include information on creditors and debtors. But it will need footnotes and a signature from a director. You’ll also need to include a statement to confirm you prepared it in line with micro-entity provisions
• a simplified profit and loss account – you don’t have to submit this to Companies House right now. However, from April 2028, all UK small and micro-entity companies must file their profit and loss accounts digitally with Companies House using commercial software
• an auditor’s report – most micro-entities are exempt from auditing, but you must submit a report if your business isn’t exempt
• any notes to the accounts

What are ‘filleted’ accounts?

You can also choose to ‘fillet’ your accounts, which is when you submit an even simpler version. Micro-entities that file filleted accounts only have to supply a balance sheet with footnotes, alongside a statement confirming that a profit and loss account hasn’t been submitted.

Filleting accounts reduces the amount of information on public record about your company. Just remember that from April 2028, filleting rules will change, as digital filing of your profit and loss account will become mandatory.

Micro-entity accounts vs abridged accounts

If you file micro-entity accounts, you’re essentially filing abridged accounts. Abridged accounts are a simpler and more concise overview of a company’s finances. They include less information on things like cash flow and profits compared to full accounts.

It’s optional for small companies (those larger than micro-entities) to send abridged accounts to Companies House. But to do this, you’d need all of your company directors to agree to it. Small companies that send abridged accounts also have to make sure a director prints and signs their balance sheet.

How to complete micro-entity accounts

Most businesses that opt for this type of accounting use Companies House’s online filing service. You’ll need your Government Gateway login and Companies House authentication code to do this.

Micro-entities also have the benefit of being able to use the Company Accounts and Tax Online (CATO) service, which allows you to submit your accounts to HMRC and Companies House at the same time.

Micro-entity accounts software

While you can complete your accounts manually, you might want to hire an accountant to do it for you. You can also use accounting software to help you fill out and format all the necessary information.

Good accounting software can save you time, reduce errors, and ensure you submit exactly what you need to.

Using software now is also the best way to future-proof your business ahead of the April 2028 rules, which will require you to file your profit and loss accounts using commercial software. Our guide to the best accounting software for small businesses compares the best-known suppliers and explains more about cloud accounting software.

What are the benefits of filing micro-entity accounts?

If you’re eligible to file micro-entity accounts, there are three main advantages:

1. It’s less time-consuming than filing full company accounts
2. The process is simpler, so there’s less chance of getting things wrong
3. You can stop competitors from seeing key information about your business

Are there any downsides to micro entity accounts?

If you’re looking for funding to grow your company, such as angel investment or venture capital, filing micro entity accounts could hold you back.

Because you provide less publicly available information about your company, investors might choose to fund companies they know more about.

Should you use a micro-entity accounts template?

A micro-entity accounts template could give you a good idea of the information you need to submit and how you should lay it out.

But remember to make sure the template you’re using is right for the size of your company. You also need to make sure that the accounts you submit meet either the International Financial Reporting Standards or the New UK Generally Accepted Accounting Practice.

Please use this article as a guide only. Before submitting your accounts, check the government guidance and get the help of a professional accountant if you need it.

Small business guides and resources

• A guide to filing your company tax return and paying corporation tax
• What’s the difference between a sole trader and a limited company?
• How can small businesses get R&D tax relief?
• What does professional indemnity insurance cover?