Wenzo guidesWhich size is my company?
Companies House sorts private limited companies by size, and the size decides how much you put in the accounts you send it. GOV.UK’s guide to micro-entities, small and dormant companies says a company qualifies if it meets any 2 of the 3 limits below.
| Limit | Micro-entity | Small company |
|---|---|---|
| Turnover | £1 million or less | £15 million or less |
| Balance sheet total | £500,000 or less | £7.5 million or less |
| Employees | 10 or less | 50 or less |
Two examples
Illustrative example. A consultancy company with £180,000 turnover, £60,000 on its balance sheet and 2 employees meets all 3 micro-entity limits, so it can use the micro-entity rules.
A company with £1.4 million turnover, £300,000 on its balance sheet and 8 employees still meets 2 of the 3 micro-entity limits, so it qualifies too.
What can a micro-entity do?
- Prepare simpler accounts that meet the statutory minimum requirements.
- Send only its balance sheet, with less information, to Companies House.
- Use the same exemptions as small companies, including not needing an audit.
Need your micro-entity accounts prepared?
We prepare your annual accounts and Company Tax Return, bookkeeping included, and file nothing until you approve. It’s £199 for turnover up to £90,000, or £499 for turnover above £90,000.
Find your companyWhat can a small company do?
- Use the audit exemption.
- Choose whether to send the directors’ report and profit and loss account to Companies House.
- Send ‘abridged’ accounts to Companies House, but only if all the company’s members agree. These contain a simpler balance sheet and notes, and the balance sheet must show a director’s name and be signed by a director.
Does HMRC still get full accounts?
Yes. The simpler versions are only for the public record at Companies House. Small companies and micro-entities must still send statutory accounts to their members and to HMRC as part of the Company Tax Return (CT600).
Our guide to annual accounts and the Company Tax Return shows how the two filings fit together, and GOV.UK covers how to prepare annual accounts.
What if my company is dormant?
A company with no ‘significant’ transactions in the year is dormant for Companies House. Filing fees, late filing penalties and money paid for shares at incorporation do not count.
A dormant company that qualifies as small does not need an audit. Our dormant company accounts guide covers what it still files. Wenzo’s dormant accounts service is £19, paid at the start.
Is anything changing?
Companies House accounts filing is moving to commercial software only. A planned change requiring small companies and micro-entities to file a profit and loss account has been paused.
Our guide to the closed HMRC filing service has the dates and links to the Companies House update.
How can Wenzo help?
For a trading company, our £199 package (turnover up to £90,000) and £499 package (turnover above £90,000) both cover the annual accounts and Corporation Tax return, with bookkeeping included. You pay when you approve.
- Send your records, with your turnover, balance sheet and staff numbers if you’re not sure whether you’re a micro-entity or small. Our guide to which records to send helps.
- Our accountants prepare the right accounts for your size.
- You approve the accounts before anything is filed.
If this is your company’s first year, read your first set of accounts and know your deadlines. You can also see all three prices, check your dates with the deadline checker, or call us on 020 7123 9335.
Article reviewed
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