Micro-Entity Accounts: What They Are and How to File with Your CT600

Micro-Entity Accounts: What They Are and How to File with Your CT600

Most small UK limited companies qualify as micro-entities — the simplest category of company accounts. If your company qualifies, you can file drastically simplified financial statements with Companies House and HMRC.

This guide explains everything you need to know about micro-entity accounts, including how they interact with your CT600 Corporation Tax return.

Do You Qualify as a Micro-Entity?

Your company qualifies as a micro-entity if it meets at least two of these three conditions:

These thresholds apply to financial years beginning on or after 6 April 2025, following the Companies (Accounts and Reports) (Amendment etc.) Regulations 2024. For financial years beginning before that date, the previous limits were £632,000 turnover and £316,000 balance sheet total.

Most one-director limited companies with no employees easily qualify.

Who Does NOT Qualify?

• Companies that are part of a group
• Charities
• LLPs (Limited Liability Partnerships)
• Companies in financial services (banking, insurance)
• Companies that choose to prepare accounts under FRS 102

What Are Micro-Entity Accounts?

Micro-entity accounts follow FRS 105 (the Financial Reporting Standard applicable to the Micro-entities Regime). They include:

Required Components

1. Balance sheet — a simplified version with fewer line items
2. Notes to the accounts — very minimal (just accounting policies and guarantees)

NOT Required

• ❌ Profit and loss account (P&L) — not filed at Companies House
• ❌ Directors' report
• ❌ Detailed notes
• ❌ Cash flow statement

Yes, you read that right — micro-entities don't need to file a P&L with Companies House. Your competitors can't see your turnover or profit.

Micro-Entity vs Small Company Accounts

For most small companies, micro-entity accounts are the way to go — they're simpler, cheaper, and reveal less to competitors.

How Micro-Entity Accounts Work with CT600

When you file your CT600, you must include accounts in iXBRL format. Here's how micro-entity accounts fit in:

What HMRC Receives

1. CT600 form — your tax return (XML format)
2. Tax computation — how the tax was calculated (iXBRL)
3. Accounts — your micro-entity financial statements (iXBRL)

Important: HMRC Gets More Than Companies House

While Companies House only gets the balance sheet, HMRC receives the full accounts including the profit and loss account. This is because HMRC needs to verify your tax computation.

Your CT600 accounts are confidential — only HMRC sees them, not the public.

The Balance Sheet

A micro-entity balance sheet is stripped down to essentials:

Fixed Assets

• Tangible assets — equipment, vehicles, property

Current Assets

• Cash at bank and in hand
• Debtors — money owed to you
• Other current assets

Creditors

• Due within one year — bills to pay, credit cards, tax owed
• Due after one year — loans, mortgages

Capital and Reserves

• Share capital — nominal value of shares
• Profit and loss account — retained earnings

That's it. No goodwill, no investments breakdown, no complex financial instruments.

Filing Micro-Entity Accounts

With Companies House

You must file accounts within 9 months of your accounting year-end. For micro-entities, you file:

• A simplified balance sheet
• Very basic notes

With HMRC (via CT600)

You must file your CT600 within 12 months of your accounting year-end. Your accounts are submitted in iXBRL format alongside the CT600.

The iXBRL Requirement

HMRC requires accounts in iXBRL (inline eXtensible Business Reporting Language) when you submit your CT600. iXBRL is a machine-readable format that looks like HTML but contains tagged financial data — HMRC uses it to automatically process and cross-check your figures.

For your HMRC submission, you cannot just send a PDF — the data must be properly tagged in iXBRL. This is one of the main reasons people use filing software like Taxpipe.

Companies House currently accepts accounts in other formats, including PDF uploads via WebFiling. However, under the Economic Crime and Corporate Transparency Act, mandatory software-only filing at Companies House is being phased in from 1 April 2027.

Common Mistakes

1. Filing P&L with Companies House

Micro-entities don't need to file a P&L. Some directors file one by mistake, revealing their turnover and profit to competitors.

2. Using the Wrong FRS Standard

If you use FRS 102 tags in your iXBRL when you should be using FRS 105, HMRC will reject your CT600 submission.

3. Missing the Filing Deadline

Companies House charges escalating late filing penalties:

• Up to 1 month late: £150
• 1-3 months late: £375
• 3-6 months late: £750
• Over 6 months late: £1,500

4. Not Matching CT600 and Accounts

Your CT600 figures must match your accounts. If Box 145 (turnover) says £100,000 but your accounts show £80,000, HMRC will ask questions.

How Taxpipe Handles Micro-Entity Accounts

Taxpipe generates your micro-entity accounts automatically:

1. Enter your figures in the guided wizard
2. Taxpipe creates the iXBRL — properly tagged FRS 105 accounts
3. Balance sheet is auto-generated from your CT600 data
4. Submit with your CT600 — accounts, tax computation, and CT600 are all submitted together

You don't need to understand iXBRL, FRS 105, or HMRC's tagging requirements — Taxpipe handles all of it for £59.

Summary

• Most small limited companies qualify as micro-entities
• Micro-entity accounts are the simplest option: just a balance sheet and basic notes
• No P&L is filed with Companies House (but HMRC gets the full picture via CT600)
• Accounts must be in iXBRL format for your HMRC/CT600 submission
• Taxpipe generates compliant micro-entity accounts automatically

Need to file micro-entity accounts with your CT600? Taxpipe does it all for £59 — CT600, tax computation, and FRS 105 iXBRL accounts included.

Related Reading

• Filing Annual Accounts at Companies House: Complete Guide for Limited Companies
• Small Company Accounts: FRS 105 vs FRS 102 Explained
• iXBRL Accounts: What Are They and Why You Need Them for Your CT600