What are Abridged Accounts? A Basic Guide

Business owners have different options available to file their company’s account: full, micro-entity, dormant and abridged accounts. For startups and small companies with a low turnover, filing an abridged account is the best choice. These accounts contain fewer details but fulfil the compliance requirement of Companies House and HMRC. When filing an abridged account, you can omit some financial details from the balance sheet and profit and loss statement of the company. Let’s delve deep into what are abridged accounts? What information to include in abridged accounts? When does your company need to file abridged accounts? And what accounts do you need to send as a micro-entity?

Cheap Accountants In London offer a wide range of accounting services, along with preparing and filing statutory accounts (abridged accounts) at affordable rates. So feel free to get in touch with us now!

What are Abridged Accounts?

All businesses in the UK need to submit annual accounts at the year-end. Abridged accounts are shorter than full accounts but contain more details than abbreviated accounts (abolished in 2016).

Abridged accounts are the simple and short version of your company’s statutory accounts. They need limited and short information compared to full accounts. So, they can be the best option for those small businesses that don’t want to disclose their financial information to the public.

What Information to Include in Abridged Accounts?

Here the net profit is kept secret from the general public. Instead of the total turnover or cost of sales of your business, here your profit and loss statement will start from the gross profit. In addition, this account doesn’t require the breakdown of balance sheet items (including fixed assets, creditors and debtors), but it’ll indicate their movement. It means that you don’t need to show your corporation tax publically.

These accounts include limited information compared to full accounts. Generally, abridged accounts:

• contain a simpler balance sheet with the name and director’s signature and related notes
• may include a simple profit and loss account and director’s report

If you make the decision to fillet your accounts (abridged), you don’t need to include the profit and loss report and the director’s report on the version of your accounts that you need to send to Companies House.

At Cheap Accountants In London, we offer compliance-only packages for limited companies. Contact today!

When Does your Company need to File Abridged Accounts?

If you’re a small company, you are allowed to file abridged accounts if you meet two of the below-mentioned conditions:

• The total turnover of your company is below £10.2 million
• Your balance sheet is below £5.1 million
• The number of your employees is below 50

Importantly, you can only send the abridged versions of accounts if all company’s shareholders agree. And you need to mention the consent of shareholders on your balance sheet while filing your accounts with Companies House that all of them have agreed to send abridged accounts.

What Accounts Does Micro-entity Need to Send?

Micro entities need to prepare a balance sheet and profit and loss statement with less information than that of abridged account. In addition, the accounts of these entities don’t need you to prepare directors’ reports. Remember that you only need to submit micro-entity accounts if you fulfil two of the below conditions:

• The total turnover of your company is below £632,000
• Your balance sheet is below £316,000
• The number of your employees is below 10

Hire an Accountant to Prepare and File your Accounts

So, after giving this post a read, we hope that you have understood what are abridged accounts? What information to include in abridged accounts? When does your company need to file these accounts and what accounts do micro-entities need to send?

Although it is not necessary to hire an accountant to prepare and file your accounts, but it is well worth it. Collecting information for filing accounts can be a time-consuming and hectic task, as the owner of a limited company, you might don’t have enough time for that. An accountant will not only save your time, money and stress but will make sure that you’re meeting all the statutory obligations of HMRC and Companies House. And fortunately, the cost spent on an accountant is purely a business expense that means you don’t need to pay tax on it.

So why not contact our limited company accountants to file your abridged accountants at an affordable rate!

Get an instant quote right away!

Disclaimer: This blog provides basic information on abridged accounts.

Abridged, micro-entity and full accounts compared

Small companies prepare full accounts for their members and HMRC, but can often file a reduced version at Companies House. Reporting rules for small companies are due to change under the Economic Crime and Corporate Transparency Act, with changes starting from April 2027, so check the latest Companies House guidance before you file. Read our articles on micro-entity accounts and company accounts.

When full accounts may be better

Even if you may file abridged accounts, you may prefer fuller accounts if lenders, investors or customers will look at them, or if you want to show profit performance. Abridged accounts are also not a substitute for the full accounts you must give to shareholders and use for tax. Ask your accountant which format suits you, and note that rules for small companies are due to change.

How to file

1. Prepare full accounts for your members and tax purposes.
2. Prepare the abridged version, with the required statements, if you choose to file one.
3. Obtain members’ agreement where required.
4. File with Companies House before the nine-month deadline.

Key points to remember

• The full accounts remain your core record for members and tax.
• The filing format can differ from the full accounts, depending on your choice and the current rules.
• Micro-entity accounts are a separate, simpler format with their own limits.
• Rules for small companies are changing, so confirm the current requirements before each filing.

If in doubt, ask your accountant to prepare the version that meets the rules and suits the people who will read your accounts, including lenders and investors.

Practical next step

Ask your accountant which accounts format you should file this year, and agree it before the year end so nothing is rushed. If you would like a London accountant to look at your own position, you can book a free call, and we will explain your options and give you a fixed fee before you commit.

Whichever format you choose, make sure the accounts are approved by the directors, signed on the balance sheet and filed before the deadline, because late filing brings automatic penalties.

Frequently asked questions

What are abridged accounts?

A shortened version of a small company’s accounts filed at Companies House, instead of the full accounts.

Do abridged accounts go to HMRC?

HMRC normally needs the full accounts and tax computations with the CT600.

Are the rules changing?

Yes, reporting rules for small companies are due to change from April 2027, so check current guidance.