There are various sizes of company in the UK, each with different requirements for disclosing financial details and filing these details at Companies House.
A company is either classed as a micro-entity, small company, or large entity.
Disclosure of financial statements vary for each with more detailed disclosures for larger entities and simplified accounts for small businesses.
2024 update: Changes in reporting requirements
The UK government has announced changes to the size thresholds that determine the level of financial reporting required for companies. These changes affect how companies of different sizes report their financial statements to Companies House. These adjustments aim to ease the regulatory burden, especially around non-financial reporting for smaller companies, and will save UK businesses an estimated £240m per year. Legislation is expected to be laid before Parliament by the end of the year, with the changes anticipated to take effect on 6 April 2025 – instead of a previously announced October 2024 deadline. However, as will all legislation changes, this could be subject to changes.Below is a breakdown of the company classifications, the reporting requirements for each, and the key upcoming changes.
| Company Size | Thresholds Before April 6, 2025 | Thresholds After April 6, 2025 | Reporting Requirements Before April 6, 2025 | Reporting Requirements After April 6, 2025 |
|---|---|---|---|---|
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Micro-entity |
2 of the following 3 criteria
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2 of the following 3 criteria
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Small Company |
2 of the following 3 criteria
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2 of the following 3 criteria
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Medium-sized Company |
2 of the following 3 criteria
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2 of the following 3 criteria
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Large Company |
2 of the following 3 criteria
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2 of the following 3 criteria
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We’ll go through each of the different company types and their reporting requirements in turn below:
Filing requirements for micro-entities accounts
Micro-entities thresholds
Micro-entities are the smallest businesses, and they benefit from the simplest reporting requirements according to the Financial Reporting Standard for Micro-Entities FRS 105. In October 2024, the thresholds for being classified as a micro-entity will be increased. A company now qualifies as a micro-entity if it meets two out of three of the following criteria:
- Turnover: Less than £1 million (up from £632,000).
- Balance Sheet Total: Less than £500,000 (up from £316,000).
- Employees: 10 or fewer.
A small coffee shop with a turnover of £200,000, assets worth £100,000, and three employees now qualify as a micro-entity.
What are the reporting requirements for micro-entities in the UK?
The reporting requirements for micro-entities are now simpler, with this type of company benefiting from the following:
- Simplified financial statements: Micro-entities only need to file a basic balance sheet and profit and loss statement.
- No detailed notes required: These companies do not need to provide extensive notes to explain their financial data.
- No audit required: Micro-entities are generally exempt from mandatory audits unless required by shareholders or the law.
Changes effective from October 2024 for micro-entities:
With the changes expected to take effect in April 2025, micro-entities will be required to prepare a profit and loss account but are not required to prepare a directors’ report. This type of company will now also lose the option to file abridged accounts, meaning micro-entities will have to provide clearer, standard accounts.
Additionally, with the updated size thresholds to turnover, assets and employees,, more small businesses will now qualify as micro-entities..
Filing requirements for small companies accounts
Small companies thresholds
Small companies have more detailed reporting requirements than micro-entities, but still benefit from certain exemptions according to FRS (Financial Reporting Standard) 102 Section 1A. A company will be a small company if it meets two out of three of the following criteria:
- Turnover: up from £10.2 million (will increase to £15 million starting in October 2024)
- Balance sheet total: Less than £7.5 million (will increase to £5.1 million start in October 2024)
- Employees: 50 or fewer.
Example
A software development company with £9 million in annual turnover, assets worth £6 million, and 40 employees qualifies as a small company.
What are the reporting requirements for small companies in the UK?
- Profit and Loss Account: Small companies are now required to file their profit and loss accounts (P&L), which will be available for public review.
- Directors’ Report: These companies must also submit a directors’ report which should give details of the company’s management and operations, on top of the other company accounts.
- No mandatory audit (in most cases): Small companies generally do not need an audit unless shareholders request one or if they exceed certain thresholds.
Changes effective from April 2025 for small companies:
Abridged accounts will be removed, with all companies now required to file full profit and loss accounts. More financial information will now be available for the public to view including turnover and and a key change means that small companies will now be required to file a profit and loss account, which will also be available for the public to see.
The thresholds for qualifying as a small company will also increase, allowing more businesses to take advantage of the simplified reporting rules. The turnover threshold will rise to £15 million (currently £10.2 million), and the balance sheet total will increase to £7.5 million (currently £5.1 million). The maximum number of employees will remain at 50.
Filing requirements for for medium-sized companies accounts
Medium-sized companies thresholds
Medium-sized companies fall between small and large companies in terms of reporting obligations and are usually required to follow FRS 102 for the preparation of their financial statements. A company qualifies as medium-sized if it meets two out of three of the following criteria:
- Turnover: Less than £36 million (will increase to £54 million starting from October 2024).
- Balance sheet total: Less than £18 million (will increase to £27 million starting from October 2024)
- Employees: 250 or fewer.
Example
A chain of retail stores with £45 million in turnover, assets valued at £25 million, and 200 employees must file its company accounts as a medium-sized company.
What are the reporting requirements for medium-sized companies in the UK?
- Full financial statements: Medium-sized companies have to file a more comprehensive set of financial statements, including detailed notes and a cash flow statement.
- Audit requirements: Most medium-sized companies are not required to have their accounts audited unless they qualify for specific exemptions.
- Strategic report exemption (upcoming): The UK government is considering exempting medium-sized companies from producing a strategic report to further simplify their reporting process.
Changes effective from October 2024 for medium-sized companies:
The maximum number of employees needed for a company to be classed as a medium-sized company will remain at 250, but this threshold could increase to 500, potentially allowing more companies to qualify as medium-sized and benefit from reduced reporting obligations.
In addition, the turnover threshold will rise to £54 million (currently £36 million), and the balance sheet total threshold will increase to £27 million (currently £18 million). Medium-sized companies will still be required to file full financial statements, including detailed notes and a cash flow statement. However, the government is considering exempting these companies from producing a strategic report, which would make their reporting requirements even simpler.
Filing requirements for large company accounts
Large companies thresholds
Large companies have to keep to the most stringent reporting requirements, with full financial transparency required. Typically, these companies are required to prepare financial statements under the Financial Reporting Standard FRS 102 or may opt to follow IFRS if they operate internationally or are part of a listed group. To qualify as a large company, a business must meet two out of three of the following criteria:
- Turnover: More than £36 million (will increase to £54 million starting in October 2024)
- Balance Sheet Total: More than £18 million (will increase to £27 million starting in October 2024)
- Employees: 251 or more
Example
A large manufacturing firm with £100 million in annual turnover, assets worth £50 million, and 500 employees is classified as a large company.
What are the reporting requirements for large companies in the UK?
- Full Financial Statements: Large companies must provide a complete set of financial statements, including the balance sheet, profit and loss account, cash flow statement, and detailed notes.
- Mandatory Audit: All large companies are required to have their accounts audited by an independent auditor to ensure accuracy and compliance with relevant laws and regulation.
- Strategic Report and Director's Report: Large companies must file a strategic report detailing their financial position and future strategies, in addition to the directors’ report.
Changes effective from October 2024 for large companies
The thresholds for qualifying as a large company are set to increase on 6 April 2025, with the turnover threshold rising to £54 million (currently £36 million) and the balance sheet total increasing to £27 million (currently £18 million). The employee threshold will remain at 251 or more.
Large companies will still be required to file complete financial statements, including a balance sheet, profit and loss account, cash flow statement, and detailed notes. In order to verify the accuracy of the financial statements, large companies will still need a mandatory audit by an independent auditor. Large companies must also submit a strategic report and a directors' report, detailing their financial performance and future strategies.
Do companies have to file annually in the UK?
What are the penalties for late filing?
All companies, regardless of size, must file their financial statements on time. Failing to do so can result in fines, which increase in amount based on how late the filing is:
Up to 1 month late:
- £150 for micro-entities and small companies.
- £750 for medium and large companies.
Between 1 and 3 months late:
- £375 for micro-entities and small companies.
- £1,500 for medium and large companies.
Between 3 and 6 months late:
- £750 for micro-entities and small companies.
- £3,000 for medium and large companies.
More than 6 months late:
- £1,500 for micro-entities and small companies.
- £7,500 for medium and large companies.
Frequently-asked questions
Are UK Financial statements public?
Yes, UK financial statements are public records. All companies registered in the UK are required to file their financial statements with Companies House, the official registrar of companies in the United Kingdom, which makes these records publicly accessible. As described above, the level of detail available in the financial statements depends on the size of the company.mall businesses like micro-entities and small companies can file simplified accounts, whereas medium and large companies must disclose more comprehensive financial information.
Where can I find financial statements of a company in the UK?
You can access financial statements for any UK company through the Companies House website that you can access here. By searching for a company name or its registration number, you can view and download documents such as annual financial statements, director reports, and other filings. Additionally, platforms like Companies House Beta and third-party services also provide financial data and reports for UK companies.
Do I have to file profit and loss to Companies House?
Currently, as of the time of writing, Micro-entities and small companies do not have to file full profit and loss accounts. Small companies can file abridged accounts, which do not include the profit and loss account. From April 2025, both micro-entities and small companies will be required to file full profit and loss accounts. The option to file abridged accounts will be removed.
