MICRO-ENTITY ACCOUNTS FOR LIMITED COMPANIES

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Our micro-entity accounts service takes care of the preparation and submission of your limited company's statutory accounts and tax returns. A copy of your micro-entity accounts should be sent to all shareholders, Companies House and HMRC. The accounts must include your company’s financial statements, including the balance sheet, profit and loss statement, notes to the accounts, and any other relevant disclosures required by law.

MICRO-ENTITY ACCOUNTS EXPLAINED

When preparing statutory accounts, it is important to consider the three size classifications of companies: small, medium, or large. Within the small company classification, there is a subset known as a micro-entity. Your company will be classified as a micro-entity if it meets any two of the following criteria:

- Turnover of £632,000 or less;

- Balance sheet total of £316,000 or less;

- 10 or fewer employees.

From 6 April 2025, the following new company size thresholds apply:

- Turnover of £1 million or less;

- Balance sheet total of £500,000 or less;

- 10 or fewer employees.

If your company qualifies as a micro-entity, it will enjoy the same exemptions granted to small companies. This enables us to create streamlined accounts that fulfill the essential statutory requirements. As a result, we will be able to submit a reduced version of your balance sheet to Companies House, containing less detailed information.

Companies that do not meet the criteria for micro-entities, small, or medium are categorised as large companies. As such, they are required to prepare and submit comprehensive, detailed accounts.

CORPORATION TAX

Limited companies are liable to pay Corporation Tax on their profits. For companies based in the UK, Corporation Tax is applicable to all profits earned both domestically and internationally. In the event that your company operates outside the UK but maintains an office or branch within the country, it is only obligated to pay Corporation Tax on the profits derived from its UK-based activities.

If your company receives a 'notice to deliver a company tax return' (CT603) from HMRC, it must submit a company tax return (CT600). This notice is sent to companies that HMRC considers active and outlines the necessary requirements.

THE DEADLINE

The deadline for submitting your company tax return is 12 months after the conclusion of the accounting period. Companies with profits under £50,000 are subject to the small profits rate of 19%.

ADVICE & GUIDANCE FOR YOUR SMALL BUSINESS

Xcountant® is a 'reasonably priced' London-based accounting firm. We help business owners save time and money while complying with rules and regulations. Our team of professionals specialise in preparing statutory accounts for micro-entities, providing you with a clear understanding of your company's financial standing, both independently and in relation to your industry. The profit and loss account, along with the balance sheet, are among the most valuable tools for assessing your business's well-being and making informed decisions. Join Xcountant® now!