What is the New Threshold to File Micro Entity Accounts in the UK?

For thousands of small businesses in the UK, micro entity accounts provide a simpler, more affordable way to remain compliant with Companies House and HMRC. These accounts are designed for the smallest companies and reduce the burden of complex financial reporting.

With recent updates to the eligibility criteria, many business owners are asking: What is the new threshold to file micro entity accounts?

At Micro Entity Accounts, we specialise in helping micro and small companies across the UK prepare and file their accounts efficiently and in line with the latest regulations. Let’s break down the new rules and what they mean for your business.

The New Threshold for Micro Entity Accounts

To qualify as a micro entity, your business must meet at least two of the following conditions:

• Turnover of £1 million or less
• Balance sheet total of £500,000 or less
• 10 or fewer employees

This updated threshold allows more small companies to benefit from simplified reporting requirements, reduced filing obligations, and lower administrative costs.

Why the New Threshold Matters

Raising the threshold means that more businesses than ever can qualify to file micro entity accounts. This change offers small companies key advantages:

✅ Simplified Filing – Fewer disclosures and a shorter format make compliance easier.

✅ Lower Costs – Preparing micro entity accounts requires less work, saving money on professional fees.

✅ Improved Privacy – Less financial information is made public at Companies House.

✅ Reduced Risk of Errors – With a simpler structure, accounts are easier to prepare accurately.

Our Services at Micro Entity Accounts

At Micro Entity Accounts, we provide complete accounting and tax filing solutions tailored to micro and small businesses. Our core services include:

• Micro Entity Accounts Filing – Preparation and submission in full compliance with FRS 105.
• Corporation Tax (CT600) Filing – Accurate calculations and timely filing with HMRC.
• Self-Assessment Tax Returns – For directors, landlords, and sole traders.
• VAT Registration & Returns – Including ongoing quarterly submissions.
• Payroll & PAYE Services – RTI-compliant payroll for small teams.
• Ongoing Support – Year-round guidance to ensure you never miss a deadline.

We offer fixed, transparent pricing with no hidden charges, making us the perfect partner for small companies who want to remain compliant without overspending.

Trusted UK Tax & Accounting Resources

For additional guidance on micro entity accounts, visit these authoritative UK resources:

• HMRC – UK Government Tax Authority
• Companies House
• TaxAssist Accountants
• Crunch Accounting
• Brookson One

These platforms provide official and professional advice, but at Micro Entity Accounts, we go one step further by specialising exclusively in micro entities — ensuring you get personalised, dedicated support.

Final Thoughts

With the new threshold of £1M turnover, £500,000 balance sheet total, and 10 employees or fewer, filing micro entity accounts has become accessible to more businesses than ever. This is an opportunity for small companies to simplify their compliance while saving both time and money.