Small Company Accounts (FRS 102 Section 1A)
How TinyTax automatically detects whether your company needs micro-entity or small company accounts, and what's different.
If your company exceeds micro-entity thresholds, TinyTax automatically generates small company accounts under FRS 102 Section 1A. This guide explains how the detection works, what's different from micro-entity accounts, and answers common questions.
How Does TinyTax Decide Which Format to Use?
You don't need to choose. TinyTax checks three figures from your filing:
| Criterion | Micro-entity (FRS 105) | Small company (FRS 102 Section 1A) |
|---|---|---|
| Turnover | Up to £1,000,000 | Up to £15,000,000 |
| Balance sheet total | Up to £500,000 | Up to £7,500,000 |
| Employees | Up to 10 | Up to 50 |
Your company must meet at least 2 of the 3 criteria to qualify for a given format.
- If you meet 2 of the 3 micro-entity criteria → FRS 105 micro-entity accounts
- If you exceed micro-entity limits but meet 2 of the 3 small company criteria → FRS 102 Section 1A small company accounts
- If you exceed small company limits → accounts filing is not supported (you'll need full accounts software)
First-Year vs Established Companies
The rules differ slightly depending on whether this is your company's first filing:
| Scenario | Qualification rule |
|---|---|
| First-year filing | Must meet thresholds in the current year only |
| Established company | Must meet thresholds in both the current year and the prior year |
What's Different in Small Company Accounts?
Small company accounts include more detail than micro-entity accounts:
| Feature | Micro-entity (FRS 105) | Small company (FRS 102 Section 1A) |
|---|---|---|
| Profit and loss account | Simplified — shows turnover and a single expenses line | More detailed — turnover, cost of sales, gross profit, admin expenses |
| Balance sheet | Simplified format | Expanded with additional line items |
| Notes to accounts | Minimal | Includes accounting policies and additional disclosures |
| Directors' report | Not required | Not required for small companies claiming exemption |
Property Companies
For property companies, TinyTax uses your property income (rather than trading turnover) when checking the turnover threshold. This ensures the correct figure is compared for companies whose income comes from rent rather than sales.
Common Questions
Q: Do I need to tell TinyTax which format to use? A: No. The format is detected automatically from your figures. You don't select it anywhere.
Q: I was micro-entity last year but my turnover grew — what happens? A: If your current year figures exceed micro-entity limits but still qualify as a small company, TinyTax automatically generates FRS 102 Section 1A accounts. No action needed.
Q: Can I choose micro-entity even if I qualify for small company? A: If you meet the micro-entity thresholds, TinyTax will generate micro-entity accounts (the simpler format). You only get small company accounts if you exceed micro-entity limits.
Q: My company exceeds small company thresholds — can I still use TinyTax? A: You can still file your CT600 (corporation tax return) with TinyTax. However, accounts generation is only supported for micro-entity and small company formats. Companies exceeding small company thresholds need full accounts software for their Companies House filing.
Q: What if my figures change after I've generated accounts? A: Simply regenerate your accounts. TinyTax will re-evaluate your figures against the thresholds and generate the correct format.
Q: Does this affect my CT600? A: No. The accounts format (FRS 105 vs FRS 102) only affects the accounts document filed to Companies House. Your CT600 corporation tax return to HMRC is unaffected.
Still Have Questions?
Not sure about your company's accounts format? Get in touch and we'll help.
Last updated: February 2026
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