Prepare annual accounts for a private limited company

2. Micro-entities, small and dormant companies

You may be able to send simpler accounts to Companies House and not need to be audited. This depends on whether your company is dormant or qualifies as a small company or ‘micro-entity’.

You must still send statutory accounts to your members and to HM Revenue and Customs (HMRC) as part of your Company Tax Return if you’re a small company or micro-entity.

Dormant companies

Your company is called ‘dormant’ by Companies House if it’s had no ‘significant’ transactions in the financial year that you’d normally report. Significant transactions don’t include:

  • filing fees paid to Companies House
  • penalties for late filing of accounts
  • money paid for shares when the company was incorporated

Dormant companies that qualify as ‘small’ don’t need to be audited.

Check if your company is also dormant for Corporation Tax.

Small companies

Your company will be ‘small’ if it has any 2 of the following:

  • a turnover of £10.2 million or less
  • £5.1 million or less on its balance sheet
  • 50 employees or less

If your company is small, you can send abridged accounts to Companies House. Abridged accounts contain a simpler balance sheet, along with any notes

The balance sheet must have the name of a director printed on it and must be signed by a director.

Sending abridged accounts means less information about your company will be publicly available.

If your company is small, you can also:

  • use the exemption so your company’s accounts don’t need to be audited
  • choose whether to send a copy of the director’s report and profit and loss account or not

Micro-entities

Micro-entities are very small companies. Your company will be a micro-entity if it has any 2 of the following:

  • a turnover of £632,000 or less
  • £316,000 or less on its balance sheet
  • 10 employees or less

If your company is a micro-entity, you can:

  • prepare simpler accounts that meet statutory minimum requirements
  • send only your balance sheet with less information to Companies House
  • benefit from the same exemptions available to small companies

Find out exactly what to include in your accounts depending on your company type, for example micro-entity, small, medium or dormant.