The size tests
For financial years beginning on or after 6 April 2025, a company normally needs to meet at least two of these limits: turnover no more than £1 million, balance sheet total no more than £500,000, and no more than ten employees on average1.
For earlier financial years the turnover and balance sheet limits were £632,000 and £316,000. A short or long period can affect the turnover test. Use the rules for the period being filed, not today’s threshold simply because the filing is made today1.
First year and later years
The first financial year is assessed on its own. In later years, the qualification and loss of qualification rules can look across two consecutive years. Keep the previous accounts and employee information available rather than deciding only from this year’s turnover1.
The company’s accounting framework is separate from its size. Fileyear files micro-entity, small and dormant accounts.
Check your company’s dates and set a reminder
Search the Companies House register. Your company page shows its filing dates, what to file next and a reminder you can set.
Companies that cannot use the regime
The law excludes certain companies regardless of size. These include charities, investment undertakings and financial holding undertakings within the statutory definitions. The financial-holding test is about what the undertaking does, not merely whether its investments are in banks or insurers2.
Groups and regulated activities need separate eligibility checks. Answer those questions before preparing a micro filing.
What is filed
Micro accounts may contain less information in the public Companies House copy. That does not remove the need for complete accounting records or the full accounts and tax computation required with a Company Tax Return1.
Use Fileyear instead of an accountant only where the company falls within its supported scope. Review the figures and the statements before approving. The director remains responsible for the accounts; software does not make a false eligibility answer safe.