Who qualifies as a micro-entity?

By Ben Davies · Updated 1 June 2026

A company qualifies as a micro-entity if it meets at least two of three size limits for the year. 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 just holds and repays a Bounce Back Loan — sits comfortably inside these limits.

Companies that can't be micro-entities

Even within the size limits, some companies are excluded by law, including charities, credit and insurance institutions, and any company that prepares (or is included in) group accounts. Those file small-company or full accounts instead.

Not sure where you land? Try the free micro-entity eligibility checker, or read what micro-entity accounts are.