How WeFile Detects and Lets You Choose Your Account Type
Introduction
When you file your company's annual accounts to Companies House, they must be prepared under the correct financial reporting standard. Most small UK companies will fall into one of two categories:
Micro-Entity Accounts (Abridged) — simplified accounts prepared under FRS 105, the Financial Reporting Standard applicable to the Micro-entities Regime.
Total Exemption Full Accounts — accounts prepared under FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, using the small companies provisions.
Choosing the wrong format can lead to your filing being rejected by Companies House or, worse, filing more information publicly than you need to.
WeFile takes the guesswork out of this by automatically detecting which format is right for your company — and letting you override the recommendation if you prefer.
What Are the Two Account Types?
Micro-Entity Accounts (FRS 105)
This is the simplest format available. A micro-entity is a very small company that meets at least two of three size thresholds set by the Companies Act 2006. If your company qualifies, you can file abridged accounts with minimal disclosure.
- The Profit & Loss statement is not included in the publicly filed accounts by default
- Only the Balance Sheet and a short set of notes are visible on the Companies House public register
- Ideal for the smallest companies with straightforward finances
Total Exemption Full Accounts (FRS 102)
This format is for small companies that exceed the micro-entity thresholds but still qualify for total exemption from audit under section 477 of the Companies Act 2006.
- Full accounts include more detailed notes and are prepared under FRS 102
- Your Profit & Loss is not filed publicly by default — the exemption means you only need to deliver a Balance Sheet and notes to Companies House
- Better suited for companies with more complex financial activity
The Three Micro-Entity Thresholds
Under the Companies Act 2006, a company qualifies as a micro-entity if it meets at least two out of three criteria for the accounting period:
| Criterion | Threshold | Description |
|---|---|---|
| Turnover | ≤ £632,000 | Your company's total revenue during the accounting period |
| Balance Sheet Total | ≤ £316,000 | Gross assets — the total of all assets before deducting liabilities |
| Employees | ≤ 10 | Average number of employees during the accounting period |
How it works: If your company meets two or more of these criteria, it can prepare micro-entity accounts. If it fails two or more, it should prepare total exemption full accounts instead.
Note: Dormant companies (those with no significant accounting transactions during the period) automatically qualify for micro-entity accounts regardless of the thresholds above.
How WeFile Automatically Detects Your Account Type
When you reach Step 5 — Account Type in the filing wizard, WeFile already has your financial data from the earlier steps. It uses this data to perform the detection automatically:
- Turnover is pulled directly from the Profit & Loss data you entered in Step 2
- Gross Assets are calculated by adding up your Tangible Assets, Investments, Debtors, and Cash at Bank from the Balance Sheet in Step 3
- Average Employees is entered by you on this step
As soon as you enter (or adjust) the employee count, WeFile evaluates all three criteria in real time and displays a clear Account Type Detection panel showing:
- Each criterion with a green tick ✓ if met or a red cross ✗ if exceeded
- Your actual values alongside the threshold (e.g. "Turnover: £45,000 (≤ £632,000)")
- A summary line: "Meets 3 of 3 criteria — recommended: Micro-Entity Accounts"
This gives you full transparency into why WeFile is recommending a particular account type — no hidden logic, no guesswork.
Choosing Your Account Format
Below the detection panel, WeFile presents two selectable cards:
Micro-Entity Accounts — labelled with "Recommended" if you meet the micro-entity thresholds.
"Simplified accounts format under FRS 105. Suitable for companies meeting micro-entity thresholds."
Total Exemption Full Accounts — labelled with "Recommended" if you exceed the thresholds.
"Full accounts format with total exemption from audit under section 477. Profit & Loss is not filed publicly."
Simply click the card for the format you want. WeFile pre-selects the recommended option, but you are free to override it.
Why override? Even if your company qualifies as a micro-entity, you might prefer to file full accounts for your own record-keeping, or if your bank or investors require more detailed financial statements.
The Profit & Loss Visibility Toggle
At the bottom of the Account Type step, there's an important toggle: Include Profit & Loss in Companies House Accounts.
When the toggle is OFF (default)
- Your Profit & Loss statement is excluded from the accounts delivered to Companies House
- Only the Balance Sheet, Compliance Statement, and Notes are publicly visible
- Your P&L data is still used internally for the CT600 submission to HMRC
When you switch the toggle ON
- The Profit & Loss statement is included in your Companies House filing
- It becomes part of the public record — anyone searching your company can see it
Privacy tip: Most small companies prefer to keep their Profit & Loss private. There's no legal requirement to include it if you qualify for micro-entity or total exemption accounts. Only enable this toggle if you have a specific reason to make your income and expenses public.
What Changes in Your Filed Documents?
Your choice of account type affects several parts of the final documents WeFile generates for Companies House and HMRC:
Cover Page
The title changes to match your selection — either "Micro-Entity Accounts (Abridged)" or "Total Exemption Full Accounts". The footer also reflects the applicable standard.
Statement of Compliance
| Account Type | Compliance Statement |
|---|---|
| Micro-Entity | "These accounts have been prepared and delivered in accordance with the provisions of the small companies regime applicable to micro-entities." |
| Full Accounts | "These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime." |
Notes — Basis of Preparation
| Account Type | Basis of Preparation |
|---|---|
| Micro-Entity | "…in accordance with the micro-entity provisions of the Companies Act 2006 and FRS 105." |
| Full Accounts | "…in accordance with Financial Reporting Standard 102 and the Companies Act 2006." |
HMRC CT600 Submission: Your CT600 corporation tax return to HMRC is not affected by the account type choice. The CT600 uses the same financial data regardless — the account type only changes the accounts document that accompanies the submission.
Dormant Companies
If you marked your company as dormant in Step 1 of the wizard, the Account Type step is skipped entirely. Dormant companies automatically use the micro-entity format with FRS 105 — there's no need to choose because dormant accounts have no financial activity to report.
The filed document will show "Dormant Accounts" on the cover page, and the compliance statement will include an additional note that the company was dormant and entitled to exemption from audit under section 480 of the Companies Act 2006.
Summary
Here's a quick recap of how the Account Type step works:
- Auto-detection — WeFile reads your turnover, gross assets, and employee count to check the micro-entity thresholds automatically
- Clear feedback — A detection panel shows which criteria you meet, with a recommendation
- Your choice — Choose between Micro-Entity Accounts (FRS 105) or Total Exemption Full Accounts (FRS 102) — or accept the recommendation
- Privacy control — Decide whether to include your Profit & Loss publicly (off by default)
- Document generation — WeFile generates all documents with the correct labels, compliance statements, and basis of preparation matching your choice
No manual calculations, no guesswork — just clear guidance and full control over how your company's accounts are presented.