FRS 105 vs FRS 102 §1A: which accounts to file

In short: A micro-entity can use FRS 105 — the simplest UK accounting standard, with minimal notes and no fair-value or revaluation. A slightly larger small company uses FRS 102 Section 1A, which needs more disclosure but gives a fuller picture. You qualify for a size band by meeting at least two of three tests (turnover, balance-sheet total, employees). The thresholds increased for accounting periods beginning on or after 6 April 2025 (GOV.UK: preparing and filing Companies House accounts).

Both regimes are part of your Company Tax Return. Taxley prepares either as iXBRL when you start your return — so the choice below is the main thing to get right. If you choose FRS 105, File micro entity accounts online with your CT600 shows how Taxley files those accounts.

What's the difference between FRS 105 and FRS 102 §1A?

FRS 105 is the simplest micro-entity standard, with minimal notes; FRS 102 §1A is the small-company standard, with fuller disclosures and options FRS 105 doesn't allow (such as fair-value/revaluation and deferred tax). Most very small companies use FRS 105. Which you can use depends on the size tests set out below.

What are the micro-entity (FRS 105) thresholds?

You're a micro-entity if you meet at least two of three tests. For periods beginning on or after 6 April 2025, they are turnover of no more than £1,000,000, a balance-sheet total of no more than £500,000 and no more than 10 average employees. Earlier periods use the lower limits shown:

Some companies can't use the micro-entity regime even if small enough — for example LLPs in some cases, charities, and companies in a group that prepares (or is part of) group accounts. Check your eligibility before choosing it.

What are the small-company (FRS 102 §1A) thresholds?

If you're above the micro limits but still small, you meet at least two of three tests. For periods beginning on or after 6 April 2025, they are turnover of no more than £15,000,000, a balance-sheet total of no more than £7,500,000 and no more than 50 average employees. Earlier periods use the lower limits shown:

How do I choose between them?

Choose FRS 105 if you qualify as a micro-entity and want the simplest possible accounts; choose FRS 102 §1A if you're above the micro limits, or you want fuller disclosures or fair-value accounting. A micro-entity can "opt up" to FRS 102 §1A, but a company above the micro limits cannot use FRS 105.

• Pick FRS 105 if you qualify as a micro-entity and want the simplest possible accounts. The trade-off: you can't revalue assets or use fair value, and the accounts show very little detail.
• Pick FRS 102 §1A if you're above the micro limits, or you're a micro-entity but want a fuller "true and fair" set of accounts — for example because a lender, investor or buyer will read them, or you hold property you want to carry at fair value.

Can a property company use FRS 105?

It can if it qualifies as a micro-entity, but FRS 105 requires investment property at cost less depreciation. If you want to carry investment property at fair value (market value) with gains shown, that's an FRS 102 §1A treatment — a frequent reason a small property company chooses FRS 102 §1A over FRS 105.

See our Corporation Tax for a property company guide for how a rental company is taxed.

What changes at Companies House from April 2028?

From 1 April 2028, Companies House will accept accounts only through commercial software in iXBRL, abridged accounts end, and micro-entities and small companies must deliver their profit and loss account. The announced changes (GOV.UK: preparing and filing Companies House accounts):

• Accounts can only be filed with Companies House using commercial software, in iXBRL format.
• Companies will no longer be able to file abridged accounts.
• Micro-entities and small companies must deliver their profit and loss account to Companies House, with an option to opt out of it being published on the public register (GOV.UK announcement).

None of this changes which accounting standard you use, but it's worth planning for if you currently file a balance sheet only. Not sure your accounts suit self-filing? Take the 30-second check to see whether Taxley fits your company.

Frequently asked questions

What's the simplest option?

FRS 105 micro-entity accounts — fewer notes, no fair value, no deferred tax. Just confirm you actually qualify, by meeting at least two of the three size tests, and that the company isn't in an excluded category such as a charity.

Did the size thresholds change?

Yes — for accounting periods beginning on or after 6 April 2025 the micro and small thresholds increased (e.g. micro turnover from £632k to £1m; small turnover from £10.2m to £15m). Use the column that matches when your period began.

Can a micro-entity use FRS 102 §1A instead?

Yes. A micro-entity may choose the small-company regime for a fuller set of accounts. A small company that exceeds the micro limits cannot use FRS 105.

Do the accounts go to HMRC or Companies House?

Both, separately. HMRC receives them as part of your Company Tax Return (in iXBRL); Companies House receives your statutory accounts for the public register. From 1 April 2028, Companies House will accept accounts only through commercial software in iXBRL (GOV.UK: Preparing and filing Companies House accounts).

Which companies can't use FRS 105?

Some companies can't use the micro-entity regime even if they are small enough — for example charities, LLPs in some cases, and companies in a group that prepares (or is part of) group accounts. Check your eligibility before choosing FRS 105 (GOV.UK: preparing and filing Companies House accounts).

Taxley prepares both FRS 105 and FRS 102 §1A accounts as iXBRL. Which regime applies — and the right presentation of items like investment property — should be double-checked carefully before you file.