Micro-Entity Accounts vs Full Accounts: Which Should You File?
When your company files annual accounts with Companies House, the amount of detail you share depends on its size. Most small businesses qualify as micro-entities and can file simpler accounts. Larger ones must prepare and file full accounts. Choosing the right option saves time and keeps things private where possible.
In 2026, the rules are clear, but changes are coming in 2027 that affect what micro-entities file. Here’s a straightforward comparison to help you decide.
What Are Micro-Entity Accounts?
Micro-entity accounts are the simplest option for very small companies. They follow FRS 105 rules and include minimal information.
To qualify as a micro-entity (for periods starting on or after 6 April 2025):
- Turnover no more than £1 million
- Balance sheet total no more than £500,000
- Average employees no more than 10
Your company needs to meet at least two of these in the year.
What you file with Companies House:
- A simplified balance sheet (with basic notes and director’s signature)
- Currently, no profit and loss account or directors’ report required publicly (though you prepare full accounts for HMRC and members)
This keeps sensitive details like turnover and profits off the public record. No audit needed if you qualify.
Many sole directors or tiny teams choose this to reduce admin and protect privacy.
What Are Full Accounts?
Full accounts (also called statutory full accounts) apply to companies that do not qualify as small or micro. They include:
- Detailed balance sheet
- Full profit and loss account
- Notes to the accounts
- Directors’ report
- Auditor’s report (if not exempt)
Small companies (turnover up to £15 million, balance sheet up to £7.5 million, employees up to 50) can file abridged versions now, but micro-entities get even less disclosure.
Larger companies must file everything publicly, showing more financial performance.
Key Differences at a Glance
- Disclosure level — Micro-entity: just a basic balance sheet to Companies House. Full: complete set including profit/loss details.
- Preparation effort — Micro-entity accounts are quicker and cheaper to prepare. Full accounts need more work and often an accountant.
- Privacy — Micro-entities hide profit figures from public view. Full accounts make more info available to anyone searching your company.
- Audit — Both can be exempt if small enough, but larger companies face higher risk.
- Filing method — Same options now (online WebFiling or software), but from 1 April 2027, all accounts (including micro and dormant) must use commercial software only. No web or paper for accounts.
A big upcoming change: From 1 April 2027, micro-entities must file both balance sheet and profit and loss account publicly. No more minimal disclosure option. Small companies lose abridged filing too. Plan ahead if you’re close to thresholds.
Which Should You Choose?
If your company meets the micro-entity tests, file micro-entity accounts. It simplifies life, cuts costs, and limits what competitors or others see. Most very small businesses do this.
You can always choose to file more detailed accounts if you want (for funding applications or credibility), but it’s not required.
If you exceed the thresholds, you’re stuck with small or full accounts. Check your figures each year – growth might push you out of micro status.
Always prepare full accounts internally for HMRC’s Corporation Tax return, even if Companies House gets less.
Tips for Getting It Right
Look at your last set of accounts or projections to see which category fits. Your accounting reference date page on Companies House shows your next due date.
Keep records accurate so you know if you’re still micro next year.
If you handle multiple companies or want quick checks on size, deadlines, or filing history without logging in every time, a mobile tool helps. Companies House on the Go from Touch of Class searches public records instantly. Add your companies to a list and see key details like accounts type, deadlines, and status on your phone. It makes monitoring straightforward and reduces stress.
For easy access to company information, visit Companies on the Go.
Filing the right accounts keeps you compliant without extra hassle. Check your eligibility now – a small decision that makes a big difference.
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