UK Financial Statements Skill v1.0
General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Year applicability: Rules in this skill apply across 2024-25, 2025-26, and 2026-27 unless a specific section flags a year-dated change. The pack is read alongside the rate-bearing skills (uk-income-tax-sa100, uk-national-insurance, uk-dividends, etc.) which carry full 3-year tables.
Section 1 -- Quick Reference
| Field |
Value |
| Country |
United Kingdom |
| Currency |
GBP |
| Filing authority |
Companies House |
| Primary legislation |
Companies Act 2006 |
| Supporting regulations |
The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008; The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 |
| Accounting standards |
FRS 102 (full / Section 1A); FRS 105 (micro); UK-adopted IFRS (listed/choice) |
| Financial year |
Any period up to 18 months; usually 12 months |
| Filing deadline |
9 months after year-end (private); 6 months (public) |
| Late filing penalty |
£150 to £1,500 (private); £750 to £7,500 (public) |
| Digital filing |
iXBRL tagging required for corporation tax; online filing via Companies House |
Section 2 -- Reporting Framework
| Entity category |
Applicable standard |
Key features |
| Micro-entity |
FRS 105 |
Highly simplified; no notes beyond statutory minimum; no true and fair override |
| Small entity |
FRS 102 Section 1A |
Simplified disclosures; abridged formats permitted |
| Medium entity |
FRS 102 (full) |
Full FRS 102 disclosures; some exemptions from filing certain information |
| Large entity |
FRS 102 (full) or UK-adopted IFRS |
Full disclosure requirements |
| Listed / AIM (with IFRS) |
UK-adopted IFRS |
Mandatory for consolidated accounts of listed groups |
| Qualifying subsidiary |
FRS 101 |
IFRS recognition/measurement with reduced disclosures |
Section 3 -- Size Thresholds
Effective for accounting periods beginning on or after 6 April 2025:
| Criterion |
Micro |
Small |
Medium |
| Turnover |
≤ £1,000,000 |
≤ £15,000,000 |
≤ £54,000,000 |
| Balance sheet total |
≤ £500,000 |
≤ £7,500,000 |
≤ £27,000,000 |
| Employees |
≤ 10 |
≤ 50 |
≤ 250 |
Must meet 2 out of 3 criteria in the current and preceding year. Companies exceeding "medium" thresholds are classified as large.
Previous thresholds (periods beginning before 6 April 2025):
| Criterion |
Micro |
Small |
Medium |
| Turnover |
≤ £632,000 |
≤ £10,200,000 |
≤ £36,000,000 |
| Balance sheet total |
≤ £316,000 |
≤ £5,100,000 |
≤ £18,000,000 |
| Employees |
≤ 10 |
≤ 50 |
≤ 250 |
Section 4 -- Required Financial Statements
| Document |
Micro (FRS 105) |
Small (s1A) |
Medium/Large |
| Profit and loss account |
Required (very simple) |
Required (abridged option) |
Required (full) |
| Balance sheet |
Required (very simple) |
Required (abridged option) |
Required (full) |
| Statement of changes in equity |
Not required |
Not required (optional) |
Required |
| Cash flow statement |
Not required |
Not required |
Required |
| Notes to accounts |
Statutory minimum only |
Reduced disclosures |
Full |
| Directors' report |
Not required (statutory presumption) |
Required |
Required |
| Strategic report |
Not required |
Not required |
Required (large only) |
| Auditor's report |
Not required |
Not required (if exempt) |
Required (medium with audit) |
Section 5 -- Year-End Adjustments Checklist
| # |
Adjustment |
UK-specific notes |
| 1 |
Depreciation |
FRS 102 Section 17; useful life basis; annual review of residual value |
| 2 |
Accruals |
Audit/accountancy fees, bonuses, utilities |
| 3 |
Prepayments |
Insurance, rent, software licences |
| 4 |
Provisions |
FRS 102 Section 21; present obligation, reliable estimate |
| 5 |
Bad debt provision |
Expected credit loss model (FRS 102 Section 11 simplified) |
| 6 |
Inventory |
Lower of cost and estimated selling price less costs to sell |
| 7 |
Deferred tax |
FRS 102 Section 29; timing differences approach (not temporary differences) |
| 8 |
Holiday pay accrual |
Required under FRS 102 — untaken leave at year-end |
| 9 |
Lease accounting |
FRS 102 Section 20 (finance/operating distinction — not IFRS 16) |
| 10 |
R&D costs |
Capitalise development costs meeting criteria (Section 18) or expense |
| 11 |
Government grants |
Accruals model or performance model (Section 24) |
| 12 |
Director's loan account |
S.455 CTA 2010 tax charge if overdrawn at year-end |
Section 6 -- Profit and Loss Account Format
Companies Act 2006 Schedule 1 — Format 1 (vertical, by function) most common:
Turnover
Cost of sales
─── Gross profit ───
Distribution costs
Administrative expenses
Other operating income
─── Operating profit ───
Income from shares in group undertakings
Other interest receivable and similar income
Interest payable and similar expenses
─── Profit on ordinary activities before taxation ───
Tax on profit on ordinary activities
─── Profit for the financial year ───
Format 2 (by nature — alternative):
Turnover
Change in stocks of finished goods and WIP
Own work capitalised
Other operating income
Raw materials and consumables
Staff costs
Depreciation and other amounts written off assets
Other operating charges
─── Operating profit ───
(continue as Format 1)
Section 7 -- Balance Sheet Format
Companies Act 2006 Schedule 1 — Format 1 (vertical):
Fixed assets
Intangible assets
Tangible assets
Investments
Current assets
Stocks
Debtors
Investments
Cash at bank and in hand
Creditors: amounts falling due within one year
─── Net current assets ───
Total assets less current liabilities
Creditors: amounts falling due after more than one year
Provisions for liabilities
─── Net assets ───
Capital and reserves
Called up share capital
Share premium account
Revaluation reserve
Other reserves
Profit and loss account
─── Shareholders' funds ───
Section 8 -- Notes to Accounts
Minimum disclosures by entity size
| # |
Disclosure |
Micro (FRS 105) |
Small (s1A) |
Medium/Large |
| 1 |
Accounting policies |
Statutory only |
Required |
Full |
| 2 |
Fixed assets movements |
Not required |
Required |
Required |
| 3 |
Financial commitments |
Not required |
Required |
Required |
| 4 |
Guarantees/contingencies |
Required (on balance sheet) |
Required |
Required |
| 5 |
Related party transactions |
Not required |
Required (s1A.12) |
Required (Section 33) |
| 6 |
Employee numbers |
Not required |
Average number only |
Full breakdown + costs |
| 7 |
Directors' remuneration |
Not required |
Required (total) |
Required (detailed) |
| 8 |
Audit fees |
Not required |
Not required |
Required |
| 9 |
Financial instruments |
Not required |
Basic only |
Full (Section 11/12) |
| 10 |
Deferred tax |
Not required |
If material |
Required (Section 29) |
| 11 |
Share capital |
Not required |
Required |
Required |
| 12 |
Dividends |
Not required |
Required |
Required |
Section 9 -- Filing Requirements
| Item |
Detail |
| Filing authority |
Companies House |
| Filing method |
Online (Software filing, Companies House WebFiling, or third-party) |
| Private company deadline |
9 months after accounting reference date |
| Public company deadline |
6 months after accounting reference date |
| First accounts |
21 months from incorporation (private); 18 months (public) |
| Documents filed (small) |
Abridged balance sheet + notes (P&L can be omitted from public record) |
| Documents filed (micro) |
Balance sheet only (with statutory footnotes) |
| Documents filed (medium/large) |
Full accounts + directors' report + auditor's report |
| iXBRL |
Required for corporation tax filing to HMRC (not Companies House) |
| Language |
English or Welsh |
Late Filing Penalties (private companies)
| Delay |
Penalty |
| Up to 1 month |
£150 |
| 1–3 months |
£375 |
| 3–6 months |
£750 |
| Over 6 months |
£1,500 |
Public company penalties are doubled.
Section 10 -- Audit Requirements
| Category |
Audit requirement |
| Micro-entity |
Exempt (unless part of non-small group) |
| Small company |
Exempt (same thresholds as small company classification) |
| Medium company |
Required |
| Large company |
Required |
| Public company |
Always required |
| Charity (income > £1m) |
Required |
| Member of non-small group |
Required (even if company itself is small) |
Conditions that override small company audit exemption:
- Public company or member of group containing a public company
- Regulated (banking, insurance, financial services)
- Shareholders holding ≥10% request audit (s.476 CA 2006)
- Part of an ineligible group (group exceeds small thresholds)
Auditor qualification
Must be a Registered Auditor (member of a Recognised Supervisory Body: ICAEW, ICAS, CAI, ACCA).
Disclaimer
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).
1---2name: uk-financial-statements3description: > Use this skill when preparing, reviewing, or advising on annual financial statements for a UK company. Trigger on phrases like "Companies House accounts", "FRS 102", "FRS 105", "micro-entity accounts", "small company accounts", "abbreviated accounts", "directors' report UK", "filing accounts UK", "audit exemption UK", "year-end adjustments UK", "iXBRL", "abridged accounts", or any question about preparing statutory accounts under the Companies Act 2006. Covers FRS 102/105 frameworks, size thresholds, required statements, P&L and balance sheet formats, notes, filing deadlines, and audit requirements.4license: AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (c5---67# UK Financial Statements Skill v1.089> **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.1011> **Year applicability:** Rules in this skill apply across **2024-25, 2025-26, and 2026-27** unless a specific section flags a year-dated change. The pack is read alongside the rate-bearing skills (`uk-income-tax-sa100`, `uk-national-insurance`, `uk-dividends`, etc.) which carry full 3-year tables.1213---1415## Section 1 -- Quick Reference1617| Field | Value |18|---|---|19| Country | United Kingdom |20| Currency | GBP |21| Filing authority | Companies House |22| Primary legislation | Companies Act 2006 |23| Supporting regulations | The Small Companies and Groups (Accounts and Directors' Report) Regulations 2008; The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 |24| Accounting standards | FRS 102 (full / Section 1A); FRS 105 (micro); UK-adopted IFRS (listed/choice) |25| Financial year | Any period up to 18 months; usually 12 months |26| Filing deadline | 9 months after year-end (private); 6 months (public) |27| Late filing penalty | £150 to £1,500 (private); £750 to £7,500 (public) |28| Digital filing | iXBRL tagging required for corporation tax; online filing via Companies House |2930---3132## Section 2 -- Reporting Framework3334| Entity category | Applicable standard | Key features |35|---|---|---|36| Micro-entity | FRS 105 | Highly simplified; no notes beyond statutory minimum; no true and fair override |37| Small entity | FRS 102 Section 1A | Simplified disclosures; abridged formats permitted |38| Medium entity | FRS 102 (full) | Full FRS 102 disclosures; some exemptions from filing certain information |39| Large entity | FRS 102 (full) or UK-adopted IFRS | Full disclosure requirements |40| Listed / AIM (with IFRS) | UK-adopted IFRS | Mandatory for consolidated accounts of listed groups |41| Qualifying subsidiary | FRS 101 | IFRS recognition/measurement with reduced disclosures |4243---4445## Section 3 -- Size Thresholds4647Effective for accounting periods beginning on or after 6 April 2025:4849| Criterion | Micro | Small | Medium |50|---|---|---|---|51| Turnover | ≤ £1,000,000 | ≤ £15,000,000 | ≤ £54,000,000 |52| Balance sheet total | ≤ £500,000 | ≤ £7,500,000 | ≤ £27,000,000 |53| Employees | ≤ 10 | ≤ 50 | ≤ 250 |5455Must meet **2 out of 3** criteria in the current and preceding year. Companies exceeding "medium" thresholds are classified as large.5657**Previous thresholds** (periods beginning before 6 April 2025):5859| Criterion | Micro | Small | Medium |60|---|---|---|---|61| Turnover | ≤ £632,000 | ≤ £10,200,000 | ≤ £36,000,000 |62| Balance sheet total | ≤ £316,000 | ≤ £5,100,000 | ≤ £18,000,000 |63| Employees | ≤ 10 | ≤ 50 | ≤ 250 |6465---6667## Section 4 -- Required Financial Statements6869| Document | Micro (FRS 105) | Small (s1A) | Medium/Large |70|---|---|---|---|71| Profit and loss account | Required (very simple) | Required (abridged option) | Required (full) |72| Balance sheet | Required (very simple) | Required (abridged option) | Required (full) |73| Statement of changes in equity | Not required | Not required (optional) | Required |74| Cash flow statement | Not required | Not required | Required |75| Notes to accounts | Statutory minimum only | Reduced disclosures | Full |76| Directors' report | Not required (statutory presumption) | Required | Required |77| Strategic report | Not required | Not required | Required (large only) |78| Auditor's report | Not required | Not required (if exempt) | Required (medium with audit) |7980---8182## Section 5 -- Year-End Adjustments Checklist8384| # | Adjustment | UK-specific notes |85|---|---|---|86| 1 | Depreciation | FRS 102 Section 17; useful life basis; annual review of residual value |87| 2 | Accruals | Audit/accountancy fees, bonuses, utilities |88| 3 | Prepayments | Insurance, rent, software licences |89| 4 | Provisions | FRS 102 Section 21; present obligation, reliable estimate |90| 5 | Bad debt provision | Expected credit loss model (FRS 102 Section 11 simplified) |91| 6 | Inventory | Lower of cost and estimated selling price less costs to sell |92| 7 | Deferred tax | FRS 102 Section 29; timing differences approach (not temporary differences) |93| 8 | Holiday pay accrual | Required under FRS 102 — untaken leave at year-end |94| 9 | Lease accounting | FRS 102 Section 20 (finance/operating distinction — not IFRS 16) |95| 10 | R&D costs | Capitalise development costs meeting criteria (Section 18) or expense |96| 11 | Government grants | Accruals model or performance model (Section 24) |97| 12 | Director's loan account | S.455 CTA 2010 tax charge if overdrawn at year-end |9899---100101## Section 6 -- Profit and Loss Account Format102103Companies Act 2006 Schedule 1 — Format 1 (vertical, by function) most common:104105```106Turnover107Cost of sales108 ─── Gross profit ───109Distribution costs110Administrative expenses111Other operating income112 ─── Operating profit ───113Income from shares in group undertakings114Other interest receivable and similar income115Interest payable and similar expenses116 ─── Profit on ordinary activities before taxation ───117Tax on profit on ordinary activities118 ─── Profit for the financial year ───119```120121Format 2 (by nature — alternative):122123```124Turnover125Change in stocks of finished goods and WIP126Own work capitalised127Other operating income128Raw materials and consumables129Staff costs130Depreciation and other amounts written off assets131Other operating charges132 ─── Operating profit ───133(continue as Format 1)134```135136---137138## Section 7 -- Balance Sheet Format139140Companies Act 2006 Schedule 1 — Format 1 (vertical):141142```143Fixed assets144 Intangible assets145 Tangible assets146 Investments147148Current assets149 Stocks150 Debtors151 Investments152 Cash at bank and in hand153154Creditors: amounts falling due within one year155 ─── Net current assets ───156157Total assets less current liabilities158159Creditors: amounts falling due after more than one year160Provisions for liabilities161 ─── Net assets ───162163Capital and reserves164 Called up share capital165 Share premium account166 Revaluation reserve167 Other reserves168 Profit and loss account169 ─── Shareholders' funds ───170```171172---173174## Section 8 -- Notes to Accounts175176### Minimum disclosures by entity size177178| # | Disclosure | Micro (FRS 105) | Small (s1A) | Medium/Large |179|---|---|---|---|---|180| 1 | Accounting policies | Statutory only | Required | Full |181| 2 | Fixed assets movements | Not required | Required | Required |182| 3 | Financial commitments | Not required | Required | Required |183| 4 | Guarantees/contingencies | Required (on balance sheet) | Required | Required |184| 5 | Related party transactions | Not required | Required (s1A.12) | Required (Section 33) |185| 6 | Employee numbers | Not required | Average number only | Full breakdown + costs |186| 7 | Directors' remuneration | Not required | Required (total) | Required (detailed) |187| 8 | Audit fees | Not required | Not required | Required |188| 9 | Financial instruments | Not required | Basic only | Full (Section 11/12) |189| 10 | Deferred tax | Not required | If material | Required (Section 29) |190| 11 | Share capital | Not required | Required | Required |191| 12 | Dividends | Not required | Required | Required |192193---194195## Section 9 -- Filing Requirements196197| Item | Detail |198|---|---|199| Filing authority | Companies House |200| Filing method | Online (Software filing, Companies House WebFiling, or third-party) |201| Private company deadline | 9 months after accounting reference date |202| Public company deadline | 6 months after accounting reference date |203| First accounts | 21 months from incorporation (private); 18 months (public) |204| Documents filed (small) | Abridged balance sheet + notes (P&L can be omitted from public record) |205| Documents filed (micro) | Balance sheet only (with statutory footnotes) |206| Documents filed (medium/large) | Full accounts + directors' report + auditor's report |207| iXBRL | Required for corporation tax filing to HMRC (not Companies House) |208| Language | English or Welsh |209210### Late Filing Penalties (private companies)211212| Delay | Penalty |213|---|---|214| Up to 1 month | £150 |215| 1–3 months | £375 |216| 3–6 months | £750 |217| Over 6 months | £1,500 |218219Public company penalties are doubled.220221---222223## Section 10 -- Audit Requirements224225| Category | Audit requirement |226|---|---|227| Micro-entity | Exempt (unless part of non-small group) |228| Small company | Exempt (same thresholds as small company classification) |229| Medium company | Required |230| Large company | Required |231| Public company | Always required |232| Charity (income > £1m) | Required |233| Member of non-small group | Required (even if company itself is small) |234235### Conditions that override small company audit exemption:236237- Public company or member of group containing a public company238- Regulated (banking, insurance, financial services)239- Shareholders holding ≥10% request audit (s.476 CA 2006)240- Part of an ineligible group (group exceeds small thresholds)241242### Auditor qualification243244Must be a Registered Auditor (member of a Recognised Supervisory Body: ICAEW, ICAS, CAI, ACCA).245246---247248## Disclaimer249250This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.251252---253254_Source: [OpenAccountants](https://openaccountants.com/skills/uk-financial-statements) — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: **source-cited draft**. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (`openaccountants-mcp`)._
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