# Micro-entity accounts example (FRS 105)

Source: https://www.statutoryaccounts.io/templates/micro-entity-accounts-example/

Last reviewed: 28 October 2026

Micro-entity accounts under FRS 105 are a balance sheet with a few notes at its foot, and a profit and loss account for the members. The balance sheet carries the micro-entity statement and, if the company is exempt from audit, the audit exemption statements above a director's signature. Only the balance sheet and notes need to be filed.

## Key facts

| | |
| --- | --- |
| Who can use it | Companies within two of £1m turnover, £500,000 balance sheet total and 10 employees (years from 6 April 2025), not excluded |
| Standard | FRS 105, at historical cost: no revaluation, no fair value, no deferred tax |
| Notes | At the foot of the balance sheet: directors' advances and guarantees, average employees, off-balance sheet arrangements, commitments and contingencies (Companies Act 2006, s472(1A)) |
| Directors' report | Not required |
| Filed at Companies House | The balance sheet with its notes; filing the profit and loss account is optional |
| True and fair | The micro-entity minimum is presumed to give a true and fair view (Companies Act 2006, s396(2A)) |

As at 25 October 2026.

## Example balance sheet

Illustrative only: the company, the names and every figure are invented. Adapt the wording to the company's facts; the directors remain responsible for the accounts they approve.

**[Company name] Limited. Registered in England and Wales, registered number [12345678]. A private company limited by shares. Registered office: [address].** Balance sheet as at 31 December 2026.

| | 2026 £ | 2025 £ |
| --- | --- | --- |
| Fixed assets | 12,000 | 9,000 |
| Current assets | 48,000 | 41,000 |
| Prepayments and accrued income | 1,000 | 800 |
| Creditors: amounts falling due within one year | (21,000) | (19,500) |
| Net current assets | 28,000 | 22,300 |
| Total assets less current liabilities | 40,000 | 31,300 |
| Creditors: amounts falling due after more than one year | (10,000) | (12,000) |
| Accruals and deferred income | (2,000) | (1,800) |
| Net assets | 28,000 | 17,500 |
| Capital and reserves | 28,000 | 17,500 |

These are the lines of the micro-entity balance sheet format (SI 2008/409, Schedule 1, Section C, Format 1), in their statutory order. A line with no amount in either year is left out; here there are no provisions and no called up share capital not paid. Net current assets include the prepayments, wherever they are shown.

## Notes at the foot of the balance sheet

1. Average number of employees. The average number of persons employed by the company during the year was 3 (2025: 3).
2. Advances and credits to directors. During the year the company advanced £4,000 to a director, interest free and repayable on demand. £2,500 was repaid during the year and £1,500 was outstanding at 31 December 2026 (2025: nil). No amounts were written off or waived.
3. Financial commitments, guarantees and contingencies. At 31 December 2026 the company had commitments under non-cancellable operating leases of £6,000 (2025: £9,000), not included in the balance sheet. There are no other commitments, guarantees or contingencies and no other off-balance sheet arrangements.

FRS 105 and the Act require only these notes for a micro-entity (SI 2008/409, reg 5A); a company may add more, but it does not have to. Leases stay off the balance sheet under FRS 105: the new lessee model of FRS 102 from 2026 does not apply to micro-entity accounts.

## Statements above the signature

- The accounts have been prepared in accordance with the micro-entity provisions and have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
- For the year ending 31 December 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
- Approved by the board of directors and authorised for issue on [date] and signed on its behalf by: [signature], [printed name of the director], Director.

The micro-entity statement is required by Companies Act 2006, s414(3)(a). The three audit exemption statements must appear on the balance sheet above the signature (Companies Act 2006, s475). The copy filed at Companies House must show the printed name of the director who signed; Companies House rejects accounts without it.

## The profit and loss account for the members

The members receive a profit and loss account in the micro format; the company may choose not to file it. Figures consistent with the balance sheet above:

| | 2026 £ | 2025 £ |
| --- | --- | --- |
| Turnover | 180,000 | 165,000 |
| Cost of raw materials and consumables | (62,000) | (58,000) |
| Staff costs | (70,000) | (66,000) |
| Depreciation and other amounts written off assets | (3,000) | (2,500) |
| Other charges | (32,000) | (30,500) |
| Tax | (2,500) | (1,600) |
| Profit for the financial year | 10,500 | 6,400 |

Capital and reserves rise by the profit of £10,500, from £17,500 to £28,000, because no dividend was paid. Fixed assets rise from £9,000 to £12,000: £6,000 of additions less £3,000 of depreciation.

## What is filed and when

A private company files within 9 months of its year end; the [filing deadline calculator](https://www.statutoryaccounts.io/tools/filing-deadline-calculator/) works out the date. A micro-entity filing only its balance sheet does not need the separate statement that the profit and loss account was not delivered. From 1 April 2028 every company files its accounts with commercial software in iXBRL. On 23 October 2026 the government paused the planned requirement for micro-entities to file their profit and loss account.

Check first that the company qualifies with the [micro-entity checker](https://www.statutoryaccounts.io/tools/micro-entity-checker/): two consecutive years count, and charities and some financial companies are excluded.

## Frequently asked questions

**What notes do micro-entity accounts need?**
Only four kinds, at the foot of the balance sheet: advances, credits and guarantees to directors; the average number of employees; off-balance sheet arrangements; and financial commitments, guarantees and contingencies.

**Does a micro-entity have to file its profit and loss account?**
No. It may file only the balance sheet and its notes. The members still receive the profit and loss account. A planned requirement to file it was paused on 23 October 2026.

**Can micro-entity accounts show property at valuation?**
No. Under the micro-entity provisions everything is at historical cost: no revaluation and no fair value. A company that wants to revalue uses FRS 102 Section 1A instead.

**Who signs micro-entity accounts?**
A director signs the balance sheet on behalf of the board after the board approves the accounts. The filed copy must show the director's printed name.

## Sources

- [Companies Act 2006, section 384A](https://www.legislation.gov.uk/ukpga/2006/46/section/384A)
- [Companies Act 2006, section 384B](https://www.legislation.gov.uk/ukpga/2006/46/section/384B)
- [Companies Act 2006, section 396](https://www.legislation.gov.uk/ukpga/2006/46/section/396)
- [Companies Act 2006, section 414](https://www.legislation.gov.uk/ukpga/2006/46/section/414)
- [Companies Act 2006, section 444](https://www.legislation.gov.uk/ukpga/2006/46/section/444)
- [Companies Act 2006, section 475](https://www.legislation.gov.uk/ukpga/2006/46/section/475)
- [Companies Act 2006, section 472](https://www.legislation.gov.uk/ukpga/2006/46/section/472)
- [The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008 (SI 2008/409), Schedule 1](https://www.legislation.gov.uk/uksi/2008/409/schedule/1/part/1)
- [SI 2008/409, regulation 5A (micro-entity notes)](https://www.legislation.gov.uk/uksi/2008/409/regulation/5A)
- [FRC: FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime (September 2024)](https://www.frc.org.uk/documents/7662/FRS_105_September_2024_V7owJHN.pdf)
- [Companies House: preparing and filing Companies House accounts](https://www.gov.uk/government/publications/filing-your-companies-house-accounts/life-of-a-company-part-1-accounts)
- [Companies House: update to accounts filing from April 2028 (23 October 2026)](https://www.gov.uk/government/news/companies-house-update-to-accounts-filing-from-april-2028)

## Related pages

- [Micro-entity eligibility checker](https://www.statutoryaccounts.io/tools/micro-entity-checker/)
- [Tools and templates](https://www.statutoryaccounts.io/tools/)
- [UK GAAP frameworks](https://www.statutoryaccounts.io/guides/uk-gaap/)
- [Company size calculator](https://www.statutoryaccounts.io/tools/company-size-calculator/)
- [Companies House accounts filing deadline calculator](https://www.statutoryaccounts.io/tools/filing-deadline-calculator/)
- [First accounts deadline calculator](https://www.statutoryaccounts.io/tools/first-accounts-deadline-calculator/)
- [Late filing penalty calculator](https://www.statutoryaccounts.io/tools/late-filing-penalty-calculator/)