Most commonly, Companies House have been saying that if the profit and loss account is not filed, micro-entities need to state that fact – they are looking at Companies Act 2006, s.444(5A). However there is an explicit exemption from this statement for micro-entities in Companies Act 2006, s.444(5C) which says that micro entities do not need to comply with sub-section 5A.

It is an issue that has echoes of issues experienced by companies and accountants in October 2016, which saw those trying to file under FRS 102 rejected after changes to UK company law meant small companies no longer had the option to submit so-called abbreviated accounts for periods beginning on or after 1 January 2016. Small companies were still able to take advantage of some filing options under the new regime, but the change has led to some misunderstandings, and in some cases to rejection of company accounts filed with the Registrar of Companies.

FRS 105 was became effective for accounts filed on or after 1 January 2016 and superseded the FRSSE Financial Reporting Standard for Smaller Entities. It allows micro entities to file a lighter set of accounts usually no more than two or three pages long and comprising profit and loss account (which does not need to be filed), the balance sheet and a handful of notes which are required by law.

According to CCH Audit and Accounting senior technical writer Anne Cowley ACA another, similar, issue was one in which Companies House ‘seems to think [micro entities] are filing small company accounts but they are filing micro-entity accounts’.

She added: ‘The only reason I can think of for rejection is that they have not filed the profit and loss account (i.e. they have filed filleted accounts). In which case they should have stated that the accounts were "delivered in accordance with the small company provisions". But this is not the reason Companies House has given for rejection.’

Companies House has been contacted for comment but has yet to respond.