UK company law uses size tests to decide how much detail your accounts need and which exemptions you can use. The two labels owners hear most are micro-entity and small company. Both can mean simpler filings than a medium or large company, but they are not identical.
Your accountant chooses the right regime for your period. This page explains the published thresholds in plain English so you can ask better questions.
YearReady™ helps you get the numbers and evidence ready early. Which accounts format you file is a professional judgement call once the figures are clean.
Size tests (at least two of three)
For accounting periods beginning on or after 6 April 2025, GOV.UK sets these conditions (meet any two):
Micro-entity
- Annual turnover no more than £1 million
- Balance sheet total no more than £500,000
- No more than 10 employees on average
Small company
- Annual turnover no more than £15 million
- Balance sheet total no more than £7.5 million
- No more than 50 employees on average
Older periods used lower monetary thresholds (for example micro turnover of £632,000). If your year straddles the change, ask your accountant which rules apply. See GOV.UK: micro-entities, small and dormant companies.
What changes in practice
- Micro-entities can prepare simpler accounts that meet statutory minimum requirements and may send a less detailed balance sheet to Companies House.
- Small companies can often use audit exemption (subject to exceptions), and may choose how much detail to file at Companies House, while still sending full statutory accounts to members and to HMRC as part of the company tax return process where required.
Simpler public filing does not mean "no accounts" and does not remove corporation tax obligations. See What is a CT600.
Why the label still matters to owners
Banks, investors and buyers sometimes ask for fuller accounts than the legal minimum. Filing the shortest possible Companies House pack can be allowed and still be a poor commercial choice. That is a conversation with your accountant, not a race to the least ink.
Quick checklist
- Confirm which financial year you are preparing.
- Check turnover, balance sheet total and average employees against the two-of-three tests.
- Ask your accountant whether micro or small is available and appropriate.
- Agree what you will file at Companies House versus what members and HMRC receive.
- Keep the year-end evidence pack complete either way.
What to read next
This page is general information for UK companies. Rules, thresholds and deadlines can change. Nothing here is regulated advice, and nothing regulated should be submitted without a human approval from a qualified professional. Prefer current GOV.UK guidance for your obligations.