FRS 105 Accounts

FRS 105 is the micro-entities standard: a stripped-back framework with a simple balance sheet, minimal notes, no cash flow statement and no directors' report. From April 2025 the micro-entity thresholds rose by roughly 50%, so a company can now have up to £1 million of turnover and still qualify. That makes FRS 105 available to far more owner-managed businesses — but simplest is not always best, and we will tell you honestly when Section 1A of FRS 102 would serve you better.

Do You Qualify as a Micro-entity?

For financial years beginning on or after 6 April 2025, a company is a micro-entity if it meets at least two of: - Turnover: £1 million or less - Balance sheet total: £500,000 or less - Average employees: 10 or fewer

The limits must generally be met for two consecutive years. Some entities cannot use FRS 105 regardless of size — including charities and certain financial and regulated businesses. We confirm your eligibility every year as part of the service.

What FRS 105 Accounts Look Like

FRS 105 strips reporting to the legal minimum: - A simplified balance sheet and profit and loss account in prescribed formats - Minimal notes — typically just a couple of statutory disclosures - No cash flow statement and no directors' report - No revaluations and no deferred tax, ever — assets stay at cost - Only the balance sheet needs to be filed at Companies House, keeping your public record tiny

The FRC's Periodic Review updated FRS 105 with effect from January 2026, but micro-entities keep their simplified approach — leases stay off balance sheet, unlike the new FRS 102 rules.

Is FRS 105 Right for You?

Minimal accounts have real trade-offs: - Lenders, credit insurers and potential buyers see very little, which can hurt credit scores and due diligence - No revaluation means property-rich companies can look artificially weak - Fixed formats leave no room to present the business well

If you plan to borrow, take investment or sell, FRS 102 Section 1A with filleted filing often strikes a better balance: still light disclosure publicly, but a fuller picture available when it counts. We advise on the best regime for your plans, not just the cheapest to prepare.

Our FRS 105 Service

- Complete micro-entity accounts preparation from your records, whatever software you use - Companies House filing (balance sheet only) within the 9-month deadline - Corporation tax return (CT600) with iXBRL-tagged accounts for HMRC - Annual eligibility checks against the raised thresholds - A smooth step up to FRS 102 Section 1A if you outgrow the regime or it stops suiting you

What You Get With Acumon

• Eligibility checks against the new £1m / £500k / 10-employee micro thresholds
• Simplest legal-minimum accounts, prepared quickly and accurately
• Balance-sheet-only filing keeps your public record minimal
• iXBRL-tagged accounts and CT600 filed with HMRC
• Honest advice on FRS 105 vs FRS 102 Section 1A for your plans
• Deadline tracking so penalties never arise
• Seamless transition support if you outgrow the micro regime

Why Acumon for FRS 105 Accounts?

• On-demand, UK-based delivery from a team of 90+ UK staff
• ICAEW-registered firm of chartered accountants
• Integrated tax and accounts work so the CT600 always matches the accounts
• Xero Gold Partner, with Sage and QuickBooks support for your records

Get a Fixed-Fee Quote

Tell us what you need and we'll come back within one business day with a clear scope and a fixed price — no hourly-rate surprises. Call 020 8567 3451 or use the form and we'll be in touch.