How to read company accounts on Companies House
Which accounts did the company file?
The accounts type decides how much you can see, so identify it before reading a single number. Companies House records a category for each company's latest accounts, and the filed document usually says on its cover or balance sheet page which regime it was prepared under.
Key facts:
- A company is a micro-entity if it meets two of three limits: turnover up to £1 million, balance sheet total up to £500,000 and no more than 10 employees, for financial years beginning on or after 6 April 2025 (SI 2024/1303).
- A small company meets two of: turnover up to £15 million, balance sheet total up to £7.5 million, no more than 50 employees.
- Micro-entities may file only a balance sheet; small companies may choose not to file the profit and loss account and directors' report (GOV.UK).
- 32.4% of active companies last filed micro-entity accounts and 1.5% full accounts on 1 October 2026 (UK Company Data, accounts type study).
| Category on the register | Share of active companies | What the public filing usually contains |
|---|---|---|
| Micro-entity | 32.4% | Abbreviated balance sheet, minimal notes |
| Total exemption full | 23.8% | Small company balance sheet and notes; profit and loss only if the company chose to file it |
| Dormant | 10.8% | Balance sheet with no trading activity |
| Unaudited abridged | 2.9% | Condensed balance sheet with fewer line items |
| Full | 1.5% | Balance sheet, profit and loss, directors' report, usually an audit report |
| Small | 1.2% | Small company accounts; contents vary with the options chosen |
| No accounts filed yet | 26.0% | Nothing to read |
Source: UK Company Data analysis of the Companies House register, 1 October 2026. Definitions are in our accounts categories entry.
The balance sheet line by line
A UK balance sheet runs from what the company owns, down through what it owes, to what is left for shareholders. The order below follows the standard Companies Act format used by micro, small and larger companies; micro-entity accounts use fewer lines but the same logic.
| Line | What it means | What to look for |
|---|---|---|
| Fixed assets | Long-term assets: property, equipment, vehicles, intangibles, investments | Large investments in a small company often mean a holding company |
| Current assets | Stock, debtors (money owed to the company) and cash at bank | Cash compared with short-term creditors |
| Creditors: amounts falling due within one year | Trade suppliers, HMRC, overdrafts, director loans repayable on demand | Rising faster than current assets |
| Net current assets (liabilities) | Current assets minus creditors due within one year | Negative means short-term debts exceed short-term assets |
| Total assets less current liabilities | Fixed assets plus net current assets | The capital employed before long-term debt |
| Creditors: amounts falling due after more than one year | Bank loans, long-term director loans, finance leases | Large balances relative to net assets |
| Provisions for liabilities | Amounts set aside for known obligations, often deferred tax | Usually small in micro accounts |
| Net assets (liabilities) | Everything owned minus everything owed | Trend over three years |
| Capital and reserves | Share capital plus retained profits; equals net assets | Retained losses larger than share capital |
Total assets less current liabilities and net assets are the two lines most often quoted. Our creditors entry explains how the two creditor lines differ.
How the lines add up
The arithmetic is the same on every balance sheet:
Net current assets = Current assets - Creditors due within one year
Total assets less current liabilities = Fixed assets + Net current assets
Net assets = Total assets less current liabilities - Creditors due after one year - Provisions
Net assets = Capital and reservesIf the last line does not balance, you are probably reading the prior year column or a figure in thousands. Most UK accounts show the current year and the previous year side by side, so check the column header and date before copying a number.
When can you see profit and loss?
You see a profit and loss account only when the company files one, which most small companies currently do not. Medium and large companies must file it; micro-entities and small companies may leave it out of the copy they deliver to Companies House.
This will change. From 1 April 2028, small companies and micro-entities must deliver a profit and loss account to Companies House, but they can opt out of having it published on the register. Small companies will also lose the option to prepare abridged accounts, and all accounts must be filed through commercial software in iXBRL format. Companies House announced the April 2028 date on 9 June 2026, replacing the earlier plan of April 2027. Our guide on how to find a company's turnover covers what this means in practice.
Notes worth reading
The notes often say more than the balance sheet, especially in small company accounts. Read these first:
- Average number of employees. Every company must disclose it in the notes (Companies Act 2006, s.411). It is the best size signal when turnover is missing.
- Advances and credits to directors. Loans to or from directors must be disclosed (s.413). A large overdrawn director's loan account can strain cash.
- Creditors breakdown. Splits creditors into trade, tax and social security, bank loans and amounts owed to directors or group companies.
- Secured debts and guarantees. Shows which liabilities are secured on company assets.
- Going concern or material uncertainty. If directors or auditors flag doubt about the company continuing, it appears here.
Also check the balance sheet date and the approval date near the director's signature. A long gap between the two suggests accounts finished at the last minute; a year end that keeps moving can mean the company is buying time.
Comparing two years
One year of accounts is a snapshot; two or three show direction. Compare the current year and prior year columns in the latest filing, then open the filing from two years ago for a third point.
Questions to ask across years:
- Are net assets rising or falling, and by how much?
- Is cash rising or falling relative to creditors due within one year?
- Are amounts owed to directors or group companies growing? That often means the owners are funding losses.
- Did the accounts type change, for example from small to micro-entity? Less disclosure is legal but reduces what you can check.
Five common misreadings
Most mistakes come from reading one number without its context.
- Treating negative net assets as proof of insolvency. Negative net assets do not by themselves mean insolvency; many young or director-funded companies show them.
- Reading the prior year column. The right-hand column is usually last year.
- Ignoring units. Larger companies often report in thousands (£000); micro accounts are usually in whole pounds.
- Assuming no profit and loss means no trading. Most small companies simply chose not to file it.
- Trusting the figures as audited. Most small companies are exempt from audit, so the numbers are the directors' own.
Reading accounts as data
Accounts filed electronically in iXBRL carry hidden tags on each figure, which lets software read them. We have parsed about 37 million iXBRL accounts filed from 2008 to 2026, covering about 7 million companies; about 70% of active companies have at least one machine-readable filing. Large groups often file PDF only, so their figures are not machine-readable.
To see a company's balance sheet history without opening each PDF, search it on our accounts page.
Sources
- Prepare annual accounts for a private limited company: micro-entities, small and dormant companies, GOV.UK, accessed 17 October 2026.
- Preparing and filing Companies House accounts, GOV.UK, accessed 17 October 2026.
- The Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024, SI 2024/1303, legislation.gov.uk, accessed 17 October 2026.
- Companies House to bring in changes to accounts filing from April 2028, GOV.UK, 9 June 2026, accessed 17 October 2026.
- Companies Act 2006, section 411: information about employee numbers and costs, legislation.gov.uk, accessed 17 October 2026.
- Companies Act 2006, section 413: information about directors' benefits: advances, credit and guarantees, legislation.gov.uk, accessed 17 October 2026.
FAQ
How do I read a balance sheet on Companies House?
Open the latest accounts in the filing history and find the balance sheet page. Read from fixed assets and current assets, subtract creditors due within one year to get net current assets, then subtract long-term creditors and provisions to reach net assets. Capital and reserves should equal net assets. Always check you are in the current year column, not the prior year.
Why do company accounts on Companies House have no profit and loss?
Micro-entities and small companies are currently allowed to leave the profit and loss account and directors' report out of the copy they file. Most do, so the public filing shows only a balance sheet and notes. From 1 April 2028 they must deliver a profit and loss account, but can opt out of having it published on the register.
What does total assets less current liabilities mean?
It is fixed assets plus current assets minus creditors due within one year. It shows the capital employed in the business before long-term debts. If it is negative, short-term debts are larger than everything the company owns. Our glossary entry for total assets less current liabilities explains the line in more detail.
Are company accounts on Companies House audited?
Not usually. Most small companies and micro-entities are exempt from audit, and the balance sheet then carries a statement from the directors claiming the exemption. Full accounts of larger companies include an independent auditor's report. Companies House itself only carries out basic checks on the documents it receives.
Check any UK company in seconds. Register details and the latest balance sheet figures for 5.6 million companies, free. Full financial history since 2008 as a one-off pack or through the API.
Search companies