Where to record Exchange Rate Gains or Losses in Micro-Entity accounts? | TinyTax Community
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Where to record Exchange Rate Gains or Losses in Micro-Entity accounts?

Posted by Peter 12 Feb 2026 at 05:43
Hello, I am preparing Micro-Entity (FRS 105) accounts. Due to currency fluctuations, I have a small exchange rate difference.

If it is a Loss, should I include it in "Other Charges" or is there a specific box for "Non-trade deficits"?

If it is a Gain, should it be added to "Turnover" or "Other Income"?

Does the TinyTax interface have specific boxes for these, or should they be aggregated into the main categories?

1 Comment

T
Tim Fouracre Staff 12 Feb 2026 at 07:59
Good question. TinyTax follows the statutory micro-entity P&L format, so there isn't a dedicated line for exchange rate differences. Where you record them depends on what caused the difference:

If the exchange difference is on a bank account or loan (most common): Under UK tax law, bank accounts and loans are "loan relationships" (CTA 2009 Part 5), so exchange differences on these go in the Interest income field (Box 170) — the same place as bank interest. If it's a net gain, add it there. If it's a net loss, you can enter a negative value, or include it in Other Charges if you prefer to keep things simple.

If the exchange difference is on trade invoices (e.g. you invoice customers in a foreign currency): This is a trading item, so:

- A gain should be included in Turnover (it's part of your trading income)

- A loss should be included in Other Charges

For a small amount, including it in Other Charges (if a loss) or Turnover (if a gain on trading) is the simplest approach and perfectly acceptable for micro-entity accounts.