Choosing FRS 102 Accounts When Your Company Qualifies as Micro-Entity | TinyTax Support

Choosing FRS 102 Accounts When Your Company Qualifies as Micro-Entity

TinyTax automatically selects the accounts format (FRS 105 micro-entity or FRS 102 Section 1A small company) based on your company's size. This guide explains how that works and what to do if you need a specific format.

How TinyTax Selects the Accounts Format

TinyTax evaluates your company's size each time you prepare accounts, based on three criteria:

  • Turnover
  • Balance sheet total
  • Average number of employees
Your company qualifies for a format if it meets at least 2 of the 3 criteria for that format. If your company qualifies as micro-entity, TinyTax will produce FRS 105 accounts. If it does not qualify as micro but qualifies as small, TinyTax produces FRS 102 Section 1A accounts.

This determination is automatic — there is no manual override to choose FRS 102 when your company qualifies as FRS 105.

Can a Micro-Entity Company Choose FRS 102?

Under UK accounting law, a company that qualifies as a micro-entity may voluntarily prepare accounts under FRS 102 Section 1A instead. However, TinyTax does not currently support this voluntary election. If TinyTax determines your company meets the micro-entity thresholds, it will always prepare FRS 105 accounts.

If you specifically need FRS 102 accounts — for example, to include a revaluation reserve, deferred tax, or more detailed disclosures — TinyTax will not be able to produce them while your company qualifies as micro. The options available are:

  1. Exceed the micro-entity thresholds — if your turnover or balance sheet total exceeds the micro thresholds (turnover over £1,000,000 or balance sheet over £500,000 for periods starting on or after 6 April 2025), TinyTax will automatically switch to FRS 102.
  2. Use alternative accounts software — for companies that genuinely need FRS 102 but remain micro-sized, you would need to prepare the accounts outside TinyTax and file them separately. You can still use TinyTax for the CT600 filing.

Revaluation Reserves

FRS 105 does not permit revaluation of fixed assets. If your company has revalued assets and needs to include a revaluation reserve in the accounts, FRS 105 is not the appropriate standard — FRS 102 Section 1A is required. In that case, if your company is micro-sized, see the options above.

If you are importing a trial balance, TinyTax's mapping screen includes a Revaluation Reserve category in the equity section. However, because the generated accounts will be FRS 105 for a micro company, the revaluation reserve will not be shown as a separate named line on the face of the balance sheet — the total equity will be correct, but the standard does not permit the specific disclosure.

Thresholds Reference

See Micro-Entity vs Small Company Accounts for the full threshold table and how the two-year rule applies.

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