Hello, if you have any questions or need further clarification after reading my answer please let me know.
I am happy to help you complete CT 600 .. I filed a couple of them yesterday.
Small companies are allowed to file abbreviated accounts with the Companies House and are normally exempt from audit requirements. Tthese exemptions are covered under sec 477 and 476.
When I file accounts for my clients who are small companies, I put X for points 1-3 and then accounts produced in accordance with FRSSE (effective 2008). This is a Financial reporting standard covering small companies.
The statements you are required to acknowledge are standard statements applicable to small companies in the main.
Please come back with any other questions you may have and I will do my best to help you complete the return.
Thank you for prompt response ..
I will key the numbers in my model and come back to you for more information
Thank you for your response ...
Did you actually start to trade on 7 Jan 2011 was that the date company was formed?
If you started to trade on 1 Feb 2011 then you will have to file just one set of CT600 return otherwise two ... one covering the period 7 Jan 2011 to 6 Jan 2012 and the second covering 7 Jan 2012 to 31 Jan 2012.
You will have to have two sets of accounts to cover the period longer than 12 months.
You have not mentioned about creditors .. were there any? Did you pay for certain expenditure that had not been reimbursed to you at year end date?
There is an apparent difference on your balance sheet of £2,515 see below.
You should move salaries from cost of sales to admin costs
I await your comments
Thank you for your response...
You have two choices ....
File the accounts by downloading the abbreviated accounts PDF file from Companies House .. the first set of accounts to be filed at Companies House cover the period to 31 Jan 2012 (your accounting reference date) . As you file the Balance Sheet only you won't have to produce accounts for two separate periods. It is a snap shot of balance at a given date.
File the accounts with Companies House using HMRC software... as your first accounting period covers more than 12 months, you will have to file two CT600 returns.
You stated you started working on 9 Jan 2011. When did you generate your first sales invoice? I have in the past called the tax office and agreed with them that we treat start of business on 1st of the month following month of incorporation and alleviate apportionment of profits into days in the accounting period ie 365/388days and 23/388days.
Otherwise you will have to file two sets of CT600.
Now coming to the difference ... does your spreadsheet balance?
I am surprised you are not showing any creditors?
If all other numbers are correct, then the difference is most likely to be creditors.
Were there any PAYE deductions on your salary? If so, what was owed to HMRC at 31 Jan 2012?
If you are able to send figures from your spreadsheet, I will happily check for you.
Good morning Gareth
Thank you for your response.
I know there appears to be inconsistency in the dates reported.
This is what I would do if I were preparing these accounts ...
File an abbreviated balance sheet at Companies House using their template and cover the period to Jan 2012.. it is not a big exercise..tick the box that says its first set of accounts to be filed.
Download a fresh CT600 PDF file from HMRC website and start afresh.
I will be happy to continue helping you if need be.
What is important is that you report correct financial numbers and pay CT on those profits.
Put your difference as creditors and this will make total net assets equal shareholders funds. I think your creditors are not properly reflected.
If you need more information please let me know.
I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page.
Gareth, thank you for your response.
I am glad you have opted to file abbreviated accounts separately.
I think I have answered/addressed your original question.
I will be happy to assist you with further questions but in fairness you should put them as a separate question and ask for me when posting the question.
The boxes in the statutory accounts notes... you don't have to put anything.
You don't remove the "X" marks but on the next page leave blanks...
You don't have to provide details of your creditors when completing CT600 return... just show them as creditors due within one year as one figure.
Gareth, I will answer any questions you have when completing the CT600 return .. just send me a reply ...
Thank you for your cooperation.
Thank you for your response
I suggest you reproduce the accounts on a spreadsheet with three columns to cover
year to 09/01/12, period to 31/01/12 and TOTAL (this total should agree with the numbers we reviewed earlier).
In your p&l account you should include all invoices raised for fee income whether paid or not in the accounting period.
Once you are happy with the split, share it with me and finally input them into CT600.
balance sheet at 09/01/12 should be relatively easy ... get correct bank balance and invoices outstanding (debtors incl VAT).
The profit and loss balance and share capital should be straight forward .. we will put balancing figure in creditors.
Gareth, a practical suggestion to you
consider this as an alternative ...
I calculated your CT on apportionment basis as 365/388 and 23/388 and the total tax on a profit of £16.545 is £3343.54
On the other hand, if i say all profits were earned in the period to 9 jan 2012 and no activity for period 10/01/2012 to 31/01/2012 the tax is £3,345.72.
You could show all P&L items in 1st CT600 return and show actual bank balances, debtors at 09/01/2012 and 31/01/2012.
Give it some thought..
Can I go back to basics for a minute. I have a list of all transactions in excel that cover all incomings and outgoings for my company from start to present. Every entry ties to a bank account transaction. Against every transaction I have the invoice/transaction date and the banking date, transaction type, the VAT in/out and the NET in/out and they are all listed in transaction date order.
Period 09/1/11 to 10/1/12 has 106 entries, which summarise as:
Client Expenses (In) £5,764
Client Fees (In) £31,000
Employee Salary (Out) £5,578
Employee Expenses Client Work (Out) £5,889
Employee Expenses ITGT Expenses (Out) £3,364
Bank Interest (In) £10
Dividend (Out) £11,313
VAT Payment (Out) £0
TAX / NI Payment (Out) £47
The Bank balance at 9/1/12: £7,651
Unpaid VAT in bank balance £1,203
Invoices (net) not paid (2 of) £4,129
Unpaid VAT for unpaid invoices £826
I am trying to convert these figures into the appropriate boxes on the CT600 (this was my initial reason for asking for help). I have come up with:
Box AC12 - Turnover. (fees + expenses): £36,764
Box AC14 - Cost Of Sales. (employee expenses): £5,889
AC16 calculates as £30,875
Box AC20 - Administrative Expenses (salary + company expenses): £8,989
AC26 calculates as £21,886
Box AC28 - Interest Received: £10
AC36 calculates as £21,896
Box AC38 - Dividends: £11,313
AC40 calculates as £10,583
Net Invoiced amounts unpaid at 9/1/12: £4,129 (AC52)
Bank balance at 9/1/12: £7,651 (AC54)
AC56 calculates as £11,780
Unpaid VAT on paid invoices, at 9/1/12: £1,203 (AC58)
AC68 calculates as £10,577
I've got £1 in AC70, then £10,576 in AC74, but I don't know what these numbers are - I have to do this to make the number in AC80 match that calculated for AC68. Not sure why?!!
After the statutory accounts notes pages in the CT600, there is another profit and loss page which pre-populates as follows:
AC184 = 0
AC185 = £21,896
AC186 = £11,313
AC187 = £10,583 (which matches AC40!)
I press next and CT600 says that the "retained profit must tally with the value in the balance sheet" and won't let me continue.
I have input the numbers in the model ... there is a difference and I have adjusted the creditor by this amount to make the balance sheet agree
You say box AC 52 is net invoiced amounts unpaid .. the figure should be inclusive of VAT (the debtor is invoice total including VAT) If this amount is greater than £4,129 then adjust the creditor with the difference.
Adjusted numbers are
Let me know what you think
Thank you for your prompt response ...
I hope this is all making sense now ...
Lets address the issue of £1 .. have you issued any shares to yourself?
My suggestion, treat £1 as issued share capital and adjust creditors for the rounding difference. My figures had assumed issued share capital of £1
Once you are happy with all the figures, these figures will become your year one figures when you complete CT600 for the second accounting period.
The figure in box AC74 comes from AC187.
As it is year one the figure in boxes AC40, AC74 and AC187 will be the same..
Unless you issue more shares to yourself at a future date ... your issued share capital will be £1 for every CT600 and return to Companies House.
You will agree I have put a lot of effort on your question.