- December 1, 2022
- Posted by: mardenco
- Category: Corporate Governance & Regulation
Companies that are dormant or qualify as a small company or ‘micro-entity’ can choose to send a simpler set of accounts known as abridged accounts to Companies House and do not need to be audited. These abridged accounts contain a simpler balance sheet and mean that less information about the company will be available in the public domain.
A company is usually classed as dormant by Companies House if it’s had no ‘significant’ transactions in the financial year to be reported.
A small company is defined as a business with two of the following:
- a turnover of £10.2 million or less;
- £5.1 million or less on its balance sheet;
- 50 employees or less.
A micro-entity is defined as a business with two of the following:
- a turnover under £632,000;
- £316,000 or less on its balance sheet;
- 10 employees or fewer.
If your company is a micro-entity, you can:
- prepare simpler accounts that meet statutory minimum requirements;
- send only your balance sheet with less information to Companies House; and
- benefit from the same exemptions available to small companies.
Abridged accounts can only be sent with the agreement of all the company members.