For financial years beginning on or after 6 April 2025, Companies Act 2006 section 384A requires at least two of turnover not more than £1 million, balance-sheet total not more than £500,000, and average employees not more than 10. Equality counts. Earlier years use a different regime and are not calculated here.
Total assets means the aggregate assets in the balance sheet, not net assets or equity. Employees means the sum of persons employed under contracts of service in each month divided by the number of months. For twelve months, a total of 120 means an average of 10; 121 is above 10, even if someone rounds the average down.
In the first financial year, the current numerical conditions determine size qualification. For later years, entering or leaving micro size status generally requires two consecutive numerical changes. A previously qualifying company can retain size status for one failure; a non-qualifying company normally needs two qualifying years to enter. Previous numerical conditions and previous size qualification are different facts.
SI 2024/1303 regulation 3 requires previous conditions and qualification to be reassessed as though the increased thresholds applied in those and preceding years. A prior company with turnover £800,000, assets £400,000 and average employees 8 passes the new limits even though both monetary figures exceeded the old limits. Do not treat its old filed classification as the answer to the transition test.
Short and long financial years require a proportionate turnover maximum under section 384A(5); the balance-sheet and employee maxima are not proportionately changed. This checker deliberately requires review instead of approximating a non-annual period. Verify the actual accounts period before confirming twelve months.
A parent must itself meet micro size/history conditions and head a small group under section 383. A parent preparing consolidated group accounts, or a non-parent subsidiary included in consolidated group accounts, cannot use the micro provisions under section 384B(2). Membership of a group alone is not a blanket ban; all group cases in this screen require separate review.
Exclusions must be checked for any time in the financial year: public companies; authorised insurance, banking, e-money, MiFID investment and UCITS management companies; insurance-market activity; Master Trust scheme funders; members of an ineligible group; investment undertakings; financial holding undertakings; relevant credit institutions and insurance undertakings; and charities. See sections 384 and 384B for exact legal definitions rather than guessing from a trading description. Overseas/unregistered and other specialist entities are outside this private-company screen.