Guides
Micro-Entity Accounts: Thresholds & How to File
Updated 10 Jun 2026
Micro-entity accounts are the simplest set of annual accounts a UK company can file — available to the smallest limited companies and filed with Companies House like any other accounts. For financial years beginning on or after 6 April 2025, your company qualifies if it meets at least two of: turnover of £1 million or less, a balance sheet total of £500,000 or less, and 10 or fewer employees. Here's how to tell if you qualify, what you actually file, and the change coming in April 2028.
Who qualifies as a micro-entity?
You need to meet at least two of the three criteria. The thresholds rose for financial years beginning on or after 6 April 2025 — the trigger is the start date of your financial year, not the year end.
| Criterion | FYs beginning before 6 Apr 2025 | FYs beginning on/after 6 Apr 2025 |
|---|---|---|
| Turnover | £632,000 or less | £1,000,000 or less |
| Balance sheet total | £316,000 or less | £500,000 or less |
| Average employees | 10 or fewer | 10 or fewer (unchanged) |
Two wrinkles worth knowing:
- The two-year rule. After its first year, a company only changes size category if it meets (or fails) the conditions in the current year and the year before — so one unusual year doesn't bounce you out of the regime.
- Immediate benefit from the 2025 uplift. When testing the prior year, you're treated as having met the conditions then if you would have met them under the new thresholds — so companies could use the higher limits straight away rather than waiting two years.
What do micro-entity accounts include?
Today, the version you file at Companies House is a balance sheet prepared under the micro-entity regime — the most reduced disclosure available. You still prepare a profit and loss account for your own records and for the tax return, but it isn't currently filed on the public register.
From April 2028 that changes. Under the Economic Crime and Corporate Transparency Act, micro-entities will file a balance sheet and a profit and loss account. Small and micro companies will be able to opt out of publishing the P&L on the public register (the opt-out is confirmed; the mechanism isn't yet), but it must be filed. From the same date, all accounts must be filed by software — WebFiling and paper close for accounts.
When are they due, and what if they're late?
The same rules as any private company accounts: due 9 months after your financial year end (first accounts: 21 months after incorporation), with the standard late-filing penalty bands if you miss it. The company accounts page covers deadlines and penalties in full, and the deadline checker gives you your exact dates.
Frequently asked questions
Do micro-entity accounts need an audit? Almost never — micro-entities sit well inside the small-company audit exemption. See small company accounts for how the exemption works and the rare cases where it doesn't apply.
Can I still use WebFiling for micro-entity accounts? Yes, for now. WebFiling remains open for accounts until April 2028, when accounts filing becomes software-only.
What's the difference between micro-entity and abridged accounts? They're different regimes: micro-entity is a size category with its own minimal format; abridged is a reduced-disclosure option for small companies. Micro-entity vs abridged compares them — and notes that abridged accounts are removed from April 2028.
What happens if my company grows past the thresholds? Nothing immediately — the two-year rule means you leave the micro regime only after failing the conditions for two consecutive years. Then you'd file as a small company.
I'm a sole trader — does this apply to me? No. Sole traders file nothing with Companies House — see sole trader accounts.
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