HMRC requires most companies to submit iXBRL accounts as part of their CT600 annual return. The size of your Company will dictate which reporting standard you need to use. For micro companies the standard is FRS 105. In this article we guide you through the information you need to include to comply with this standard and HMRC's requirements.
FRS 105 is a UK accounting standard for micro-entities regime.
A Micro Company is a Company where two of the following apply:
So a company's turnover could be £5 Million, but if its Assets are less than £312,000, and has 10 or less employees it would be classed as a Micro and would be eligible to report under FRC105.iXBRL stands for Inline eXtensible Business Reporting Language. These are computer readable tags that we attach to your accounts.
Logon to your EasyDigitalFiling.com account and create your accounts template, either
through QuickStart(from the new filing button in your filings blotter) or by creating a new Micro Company filing .
The Micro Company template consists of only 4 pages and he information you need to provide is limited, so if you have kept on top of your income and outgoings all year
then you will have most of the information to hand.
Ok so some of us may need to do a little homework first....
However, let's assume you have been amazing all year!
Let's start with the easy bit - Company Information
Most of your Company details will have been pre-populated if you selected your Company using the QuickStart wizard, the only fields you may need to complete is either Box 1.4 (Previous Financial year Start date) or Box 1.5 (Previous Financial year End date).
If you have been trading for longer than your current financial year please enter the start and end dates for your previous financial year in Box 1.4.
If you were incorporated during your current financial period or are creating your first financial year accounts please enter your incorporation date in box 1.5.
As mentioned above, your company registered address (Box1.6) and directors (Box 1.7) should have been pre-populated if you used QuickStart, however its worth checking the format of the address (as this is companies House Data), and also remove any directors who were not in office during the accounting period.
Box 1.8 - Was the Company trading? The default setting is yes, only switch this to no if the Company was dormant.
The opposite is true for Box 1.9, only switch to Yes if the Company was dormant.
Nearly there, now just enter the number of employees for this and last year in Box 1.10.
Now we move on to the interesting bit - the income statement.
The income statement, also referred to as the profit and loss statement is a report of all the company's revenue, gains, expenses, losses, net income and other totals for the accounting period. It usually shows the year you are reporting for and the previous year's figures as a comparison.
If this is your first year of trading leave the comparative year's figures blank.
So let's start with income, this is split into 3 parts, income from trade (sales) from the main activity of the Company.
If you have any other income from other activities within the business enter in the next box and similarly if you have any bank interest enter in the last box.
These items will be added up for you and displayed in the green banner. Enter in the information for the Company's previous year if applicable.
The next 5 sections relate to the costs you have incurred during the trading year, these are divided into cost of sales, staff costs, business premises costs,
professional costs and other expenses. These are further sub-divided into more specific areas within these categories.
Just fill any of the boxes where your Company has sustained costs. Some may not be applicable, leave any that aren't blank.
In the meantime you will notice the net profit box at the bottom of the grid, calculates your profit as you go.
Ok, now this is the part that most people find more tricky, let's take it step by step.
The balance sheet show the health of the business. It is divided into 3 sections:
Shareholders' Equity = Assets - Liabilities
There are certain statutory statements that must be included in your accounts.
These are the statements on the Company's exemption from audit, the directors' acknowledging their responsibility under the Companies Act and the account
To help you along we have included the standard wording for these in Boxes 4.3, 4.4 and 4.5. If for any reason you need to change them, you can edit these boxes.
The only other box you must complete is Box 4.2 - the principal activity of the company, a few words describing what the company does will be sufficient.
To finish we will just look at the other notes that can be added.
Box 4.0 - Directors advances, credits and guarantees. If the company has made any loans to any of the directors during the financial period make a note of it here.
Box 4.1 - Outstanding obligations - If you have any outstanding loans, you need to make a note of the nature of them in this box.
Finally, the only thing left to do is enter the date the accounts were approved by the board and enter the name of the director who signed the accounts on behalf of the board.
If you have any errors or warnings at the bottom of the template, please click on them and they will take you to the relevant section.
RED warnings will prevent you from filing with HMRC and must be addressed before you complete your filing.
AMBER warnings are there to help you with your filings. If they do not apply just accept the warnings when you are ready to file.