If you've ever stared at a Companies House form and wondered what FRS 105 actually is, you're in good company. They're not the catchiest names. But once you know what each one is for, choosing is genuinely simple.
Here's the plain English version.
Every set of UK company accounts is prepared under one of these. They each set out what you need to include, what you can leave out, and how the numbers should look. Think of them as different-sized suits for different-sized companies.
You qualify if you meet at least two of these three:
The plain English bit: FRS 105 is the simplest standard there is. Fewer notes, less disclosure, a stripped-back balance sheet. You don't need to file a profit and loss account or directors' report at Companies House, so what's public is genuinely minimal.
Best if: you want the lightest-touch accounts that still keep you compliant, and you don't need fuller accounts for lenders, investors or anyone else looking in.
You qualify if you meet at least two of these three:
The plain English bit: FRS 102 1A is the small-company shortcut within full FRS 102. You get most of the simplifications small companies are entitled to — reduced disclosures, no cash flow statement — but the underlying rules are richer than FRS 105.
Best if: you're too big for the micro regime, you have shareholders or lenders who want to see more, or you'd rather present accounts that look a bit more grown-up.
You're here if your company is bigger than small, broadly:
The plain English bit: Full FRS 102 is the standard UK GAAP — everything's in there. Cash flow statements, full disclosure notes, deferred tax done in proper detail. More work, but it's what bigger companies need.
Best if: you're medium-sized or larger, you're part of a group that prepares full accounts, or you've chosen to step up voluntarily.
The honest answer: the rules choose for you. Your company sits in whichever size category fits — and your accounts follow. Here's how to work it out in under a minute.
The thresholds got bigger. For accounting periods starting on or after 6 April 2025, the size limits went up by about 50%. So your company might have moved down a category recently — from small to micro, say — and unlocked simpler accounts in the process.
The test runs over two years. You generally need to meet the limits for two consecutive years to be confident in a category. One bumper year on its own doesn't bump you up.
Some companies can't use FRS 105. Charities, LLPs in certain circumstances, and companies in a group with audit requirements have their own rules. If you're unsure, your accountant will know.
Switching is allowed. If you've been using FRS 102 1A but now qualify for FRS 105, you can move down. And you can always step up the other way too.
Tax Optimiser supports the two standards most small businesses use: FRS 105 and FRS 102 Section 1A. If that's you, we'll guide you through your accounts and your Companies House submission in plain English, with the right format applied automatically.
If you need full FRS 102, you'll want to work with your accountant directly — that's a heavier set of rules and best left to specialist software.