The micro-entities regime
The micro-entities regime

The following Corporate guidance note provides comprehensive and up to date legal information covering:

  • The micro-entities regime
  • Brexit impact
  • Why a separate regime for micro-entities?
  • When the micro-entities regime applies
  • Annual accounts and reports
  • Requirement for accounts to be audited
  • Accounts to be filed—micro-entities

The statutory rules governing the annual accounts and reports of micro-entities (a sub-group of small companies) are set out in:

  1. Part 15 of the Companies Act 2006 (CA 2006)

  2. the Small Companies and Groups (Accounts and Directors’ Report) Regulations 2008, SI 2008/409 (Small Companies Regulations)

  3. the Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015, SI 2015/980 (2015 Regulations)

This Practice Note deals with the accounting regime as applied to micro-entities under the 2015 Regulations. The 2015 Regulations implemented various changes to the accounting regime for companies and apply in relation to financial periods beginning on or after 1 January 2016 (or on or after 1 January 2015 where the directors of the company elect for early adoption of the requirements of the 2015 Regulations).

For a general overview of the CA 2006 provisions governing company annual accounts and reports, see Practice Note: Accounts and reports—an outline of the statutory framework.

Brexit impact

The UK corporate reporting framework may be affected by Brexit. For further details of its impact, see Brexit—accounts and reports.

Why a separate regime for micro-entities?

Until recently, micro-entities have been subject to the same financial reporting requirements as other small companies. However, over the last few years, the European Commission has undertaken various consultations on how to encourage the growth and expansion of small and medium-sized enterprises