Most errors in filed small company accounts are not wrong numbers but missing or misplaced statements and notes: exemption statements below the signature instead of above it, no printed name of the signing director, a nil employee note when the director is employed, missing directors’ loan details, and notes that have not caught up with the 2026 changes to FRS 102. Some cause Companies House to reject the filing; others are accepted and sit on the public record as defective accounts.

Why do these errors have consequences?

There are three distinct risks. First, rejection: Companies House guidance says the deadline is met only when acceptable accounts are delivered, and if accounts are rejected after the filing deadline the company gets an automatic late filing penalty. The reasons for rejection are covered in why Companies House rejects filings. Second, criminal liability: section 414(4) of the Companies Act 2006 makes it an offence for a director to approve accounts that do not comply with the Act if they knew or were reckless about it and failed to take reasonable steps. Third, accepted accounts that are wrong stay on the register and may need to be replaced under the revision procedure described in revised and defective accounts.

What goes wrong on the balance sheet page?

The balance sheet is where most of the legal statements live, and where most presentation errors appear.

  • No printed name. Section 444(6) requires the copy balance sheet delivered to the registrar to state the name of the person who signed it. Companies House guidance says it will reject accounts without the printed name of the signatory, even if the signature is legible.
  • Statements below the signature. Section 475(4) requires the audit exemption statements to appear on the balance sheet above the signature required by section 414. Section 414(3) requires the small companies regime or micro entity statement to appear in a prominent position above the signature.
  • Incomplete audit exemption wording. Section 475(3) requires statements that the members have not required an audit under section 476 and that the directors acknowledge their responsibilities for accounting records and the preparation of accounts. Dropping either one removes entitlement to the exemption. The statements are explained in audit exemption for small companies.
  • Missing filing statements. Where the profit and loss account is not delivered, section 444(5A) requires the balance sheet to disclose that fact, and section 444(5) requires a prominent statement that the accounts have been delivered under the small companies regime provisions.
  • Abridged accounts without the consent statement. Section 444(2A) requires a statement that all members have consented to the abridgement.
  • No company number. Companies House guidance says the company name and number must appear on one of the component parts of the accounts.

Which notes are most often wrong or missing?

  • Average number of employees. Section 411(1) requires every company, including a micro entity, to disclose the average number of persons employed in the year. A note showing nil when a director is paid under a contract of service is a common error; see staff numbers and staff costs disclosures.
  • Directors’ advances and credits. Section 413 requires details of advances and credits to directors, including the amount, an indication of the interest rate, the main conditions, and amounts repaid, written off or waived, with totals. An overdrawn director’s loan account shown only within debtors does not meet this; see advances, credits and guarantees to directors.
  • Compliance statement. FRS 102 paragraph 1AC.2A requires an explicit and unreserved statement of compliance that clearly says Section 1A has been applied.
  • Going concern. Paragraph 1AC.2C requires the disclosures in paragraphs 3.8A and 3.9, including that the going concern basis has been used and any material uncertainties.
  • Dividends. Paragraph 1AC.40 requires dividends declared and paid or payable during the period to be disclosed.
  • Post balance sheet events. Paragraph 1AC.39, taken from Schedule 1 paragraph 64, requires the nature and financial effect of material events after the reporting date.

The full checklist is in notes required in small company accounts.

What goes wrong with periods and comparatives?

Paragraph 7 of Schedule 1 to the Small Companies Regulations requires the corresponding amount for the previous year for every item in the balance sheet and profit and loss account. Where the prior figure is not comparable it may be adjusted, but particulars of the non comparability and the adjustment must be given in a note. Common faults are comparatives missing from notes that were added this year, prior year figures that do not match the accounts actually filed last year, and reclassifications made without explanation.

Period errors are another source of trouble. Under section 390 a financial year ends on the accounting reference date or a date up to seven days either side of it. Accounts made up to a different date without first changing the accounting reference date do not match the register. Section 444(3) also requires the copies delivered to the registrar to be copies of the company’s annual accounts; GOV.UK guidance adds that amended or corrected accounts must be for the same period as the originals.

Which errors are specific to micro entity accounts?

FRS 105 paragraph 6.2 lists the only notes a UK micro entity must give, presented at the foot of the balance sheet: off balance sheet arrangements, employee numbers, advances, credits and guarantees to directors, and financial commitments, guarantees and contingencies. Errors here run in both directions. Some preparers add a full set of FRS 102 style notes, which brings the extra items back within the scope of section 393(1A)(c) and the standards that relate to them. Others omit the employee number because they assume micro accounts need no notes at all. The micro entity statement required by section 414(3)(a) is often replaced by the small companies wording, or vice versa. A company that is not entitled to the micro entity regime, for example because it is a subsidiary included in consolidated accounts, cannot use it at all; see FRS 105 micro entity accounts.

Which changes are creating new errors?

Under FRS 102 paragraph 1.37(b), the Periodic Review 2024 amendments apply to accounting periods beginning on or after 1 January 2026. For a small entity that means compliance, going concern and dividend notes that were previously only encouraged are now part of Appendix C. Sets rolled forward from last year’s template are the main risk.

Further changes are already announced. Companies House guidance says that from 1 April 2028 small companies and micro entities will have to deliver a profit and loss account, abridged accounts will no longer be available, filing will have to be through commercial software, and companies claiming audit exemption will need an enhanced statement identifying the exemption and confirming that the company qualifies.

What does a review of a draft set look like?

Illustration only. A reviewer picks up a draft set for a small trading company with one director on the payroll. The balance sheet carries the small companies statement under the director’s signature rather than above it, and the printed name is missing. The employee note says nil. The director’s loan account was overdrawn by £12,000 for six months of the year but appears only as “other debtors”. The accounting policies note still describes going concern in one line without confirming the period considered. Each item is quick to fix before approval; after filing, the same points would mean either rejection or a revision under the defective accounts procedure.

What should a final check cover?

  • Balance sheet signed by a director, name printed, statements above the signature.
  • Correct regime statement: micro entity or small companies, not both.
  • Full audit exemption wording, including the section 476 and directors’ responsibilities statements.
  • Filing statement where the profit and loss account is not delivered.
  • Average number of employees given, consistent with payroll.
  • Directors’ advances note with all section 413 details and totals.
  • Compliance, going concern, dividends and post balance sheet notes for periods from 1 January 2026.
  • Comparatives for every item, agreeing to last year’s filed accounts.
  • Period end consistent with the accounting reference date, and company number shown.

The statement of directors’ responsibilities is covered separately in the statement of directors’ responsibilities.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.