What are micro-entity accounts (FRS 105)?

By Ben Davies · Updated 26 September 2026

Micro-entity accounts are the simplest form of full statutory accounts a UK limited company can file. They are prepared under FRS 105, the financial reporting standard for the very smallest companies, and consist of a short balance sheet plus a few standard statements — no profit and loss account is filed at Companies House, and no directors' report or detailed notes are required.

They sit one step up from dormant accounts. Dormant accounts say "nothing significant happened." Micro-entity accounts say "almost nothing happened, and here is the little that did" — typically a single liability such as a loan.

Who qualifies as a micro-entity?

Broadly, a company qualifies as a micro-entity if, for the year, it meets at least two of three size limits. The limits depend on when your accounting period begins:

For periods beginning on or after 6 April 2025:

• Turnover not more than £1,000,000
• Balance sheet total (total assets) not more than £500,000
• No more than 10 employees on average

For periods beginning before 6 April 2025:

• Turnover not more than £632,000
• Balance sheet total not more than £316,000
• No more than 10 employees on average

A company that isn't trading — for example one that simply holds and repays a Bounce Back Loan — sits comfortably inside these limits.

When you'd file them instead of dormant accounts

You file dormant accounts when the company has had no significant accounting transactions at all. The moment it has one — most commonly repaying a loan or paying interest on it, whoever makes the payment — it is no longer dormant and can't file dormant accounts. It files micro-entity accounts instead. (What sits on the balance sheet doesn't decide this: a company can carry a loan or other figures from its trading years and still be dormant, as long as nothing about them changes in the year — nothing paid or collected, no interest added, nothing written off or written down.) See dormant vs non-trading for the full distinction.

What they contain

• A balance sheet showing the company's position at the period end: cash at bank, creditors due within one year, creditors due after more than one year (where the loan usually sits), net assets or liabilities, and capital and reserves.
• A statement that the accounts are prepared under the micro-entity provisions.
• The audit exemption statement (micro-entities are not audited).
• The director's name and approval.

A non-trading company has no taxable profit, so any CT600 HMRC asks for shows no tax to pay — repaying a loan isn't income, and the loan interest is a cost.

How DormantFile files them

At the filing step you choose dormant or micro-entity accounts. If you choose micro-entity, you enter a few figures — the loan balance, any repayments and interest, and cash at bank — and we build the FRS 105 accounts, generate the iXBRL document, and submit it directly to Companies House. See how it works, or the step-by-step guide to filing for a non-trading company with a Bounce Back Loan.