Micro-entity accounts keep disclosure to a legal minimum, so the Notes window for an FRS 105 period offers just four notes. Open it from the Actions list: the notes on the left (with a search box), the editor for the selected section on the right. Every section has a Show this note in the accounts switch — a note only prints when it is turned on (the employee note starts switched on because it is required) — and a Learn more about this note link to its own Help Centre article.
In FRS 105 accounts the notes print beneath the balance sheet, under Notes to the accounts, rather than as a separate section.
The FRS 105 note set
- Advances and credit, including terms and interest rates — the Companies Act section 413 disclosure of money the company has advanced to its directors (amount, terms, interest, repayments), with a second section, Guarantees and their terms, for guarantees the company has given on a director’s behalf.
- Guarantees and other financial commitments — capital commitments, other financial commitments and contingent liabilities that aren’t on the balance sheet.
- Average number of employees — required on every set of accounts (more below).
- Free Text — anything else you want to disclose, under your own heading.
The employee count — required, but 0 is allowed
Every set of statutory accounts must state the average number of employees during the year, including directors. It is an average across the whole year — not the headcount on the last day — and it can legitimately be 0, for example a company whose only director has no employment contract.
The current-year figure is the period’s Number of Employees; the prior-year figure is typed into the note. Because a zero is more often a missed field than a real answer, Tax Optimiser raises a validation warning while the count is 0:
Enter the averages and the warning clears on its own. If 0 genuinely is correct, tick Don’t warn me when the employee count is 0 instead and the warning stays away for this period.
Wording templates
The text sections offer a Use Template link. Pick a template and its wording drops into the note; the company name, period dates and a director’s name are filled in for you, and you are prompted for anything else (an amount, an interest rate). For example, Guarantees and their terms offers “Guarantee on behalf of a director” and “Personal guarantee by director”.
Each note has its own detailed article in the note-by-note guide. Running small-company accounts instead? The note list grows considerably — see Notes and policies for small-company (FRS 102 1A) accounts.
