The filing requirements for entities taking advantage of the micro-entities regime (micro-entities) operate under what is sometimes referred to as a ‘file what you prepare’ model. The basic principle is that the accounts filed at Companies House are the same as those prepared for the members. 

Micro-entities can, however, choose to not file the profit and loss account. If taking up this option, a micro-entity need only file its balance sheet, including the information disclosed at the foot of the balance sheet, at Companies House. These so-called ‘filleted’ accounts are discussed further in questions 2 to 6 below.

Yes, as noted above, micro-entities have the option of filing what are sometimes referred to as ‘filleted’ accounts ie, they can elect not to file the profit and loss account with Companies House.

If a micro-entity chooses not to file the profit and loss account, then the balance sheet must contain a statement that the accounts have been delivered in accordance with the small companies regime.

The above statement should not be confused with the separate statement required on the balance sheet to note that the accounts have been prepared in accordance with the provisions available to micro-entities. This statement is required by all entities applying the micro-entities regime and should appear in a prominent position on the balance sheet above the signature.

If a profit and loss account is not filed, there is no need to file any notes that relate solely to it.

There are no mandatory notes under the micro-entities regime that relate to the profit and loss account. However, if additional notes, over above those required by law, have been included in the micro-entity accounts, these may be omitted from the accounts filed at Companies House if they relate directly to a profit and loss account line item.

Notes specifically relating to the balance sheet and any other notes to the accounts must be included in the accounts filed at Companies House.

As noted above, if a profit and loss account is not filed, there is no need to file any notes that relate specifically to it. There has, however, been some debate about whether the ‘employee numbers’ note is or isn’t a profit and loss account note and whether it can be omitted.

The consensus view appears to be that the ‘employee numbers’ note is not a note specifically related to the profit and loss account and therefore should be included for filing.

While the balance sheet filed with Companies House in paper format must include the name of the person approving the accounts on behalf of the board, there is no requirement in the law for the members to formally approve the ‘filleted’ accounts.

If an audited micro-entity does not file its profit and loss account, then it is not required to file the audit report. Unlike a company in the small companies regime, the micro-entity is not then required to include a note to the balance sheet regarding the audit. As a result there is no indication in the filed accounts that they were subject to audit.

Alternatively, if an audited micro-entity does choose to file its profit and loss account then it is required to file the audit report.

Appendix 1 to these FAQs provides a summary of what in our view needs to be filed in a number of common scenarios.

Appendix 2 to these FAQs includes examples of the statements and notes that will typically be included in micro-entity accounts.

More information on the micro-entities regime can be found at icaew.com/smallcompanyreporting.

Employees of member firms can access a selection of Bloomsbury Professional UK GAAP model accounts and disclosure checklists.

ICAEW members can contact our Technical Advisory Service on +44 (0)1908 248 250 for confidential, expert advice.