Practical guide
Micro-entity rules
Understand the main micro-entity thresholds and why exclusions still matter even when the figures look small enough.
How the micro-entity screen works
The micro-entity regime is driven by small size thresholds, but it is not available simply because a business feels small in everyday terms.
The standard screen looks at turnover, balance sheet total, employees, and whether any exclusion applies.
Rule summary
Micro-entity threshold tests used here
This checker uses the current micro-entity thresholds of turnover not more than £1 million, balance sheet total not more than £500,000, and average employees not more than 10.
A company or LLP generally needs at least 2 of the 3 threshold tests and no relevant exclusion for the result to come out positive.
Worked examples
How the rule behaves in practice
- Two thresholds passed and no exclusion: A company comes under the turnover and employee limits, and no exclusion applies. The checker returns an eligible-style verdict because the main threshold screen is satisfied.
- Thresholds passed but exclusion applies: The figures look small enough, but the sector or entity exclusion question is answered Yes. The checker moves away from an eligible verdict because exclusions override the simple threshold count.
Practical consequences
- Because exclusions can override the size test, a company can look numerically eligible while still needing a different reporting path.
- That is why threshold screens are useful but should not be confused with a complete statutory opinion.
Important limits
- The checker does not test prior-year continuity rules or detailed group/exemption edge cases.
- It is a practical threshold screen, not a full accounting opinion.
Turn the result into an action plan
- Use the checker to see whether the figures are broadly consistent with the regime.
- Review the small-company thresholds as a fallback comparison.
- Keep the reporting decision tied to the wider filing calendar so the chosen regime flows into the right deadlines.
Use the tool
Micro-Entity Eligibility Checker
Check whether a company or LLP is likely to meet the main micro-entity size tests using turnover, balance sheet total, employees, and an exclusion flag.
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