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The company was formed to own the freehold of a block of flats. The leaseholders bought out the previous landlord and became shareholders in the company. Each shareholder thus invested around £10000 in it and now has one of 16 £1 shares. I am a director.
Does that clarify things?
Chris, thank you for your prompt reply.
Please advise -
How have the losses of £1,800 been funded?
Each shareholder invested £10,000 making total investment £160,000. As each shareholder has been issued with 1 share of £1 each your issued share capital is £16.
Would you regard the balance as a long term loan (freehold purchase fund)to the company to buy the freehold? I would consider it as such.
The company has a small amount of money in the bank, since the freehold purchase did not use 100% of the amounts 'invested/loaned' by the shareholders. This, plus a little ground rent income has funded the losses, which have been administrative expenses.
OK, thanks a lot. I'll wait for it.
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Chris, just noticed that fixed assets should be £168,000.Herewith are revised figures
These figures show original values for fixed assets, liabilities, share capital and accumulated losses to date.
I have shown the balancing figure of £200 as cash at bank and in hand.
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Many thanks, XXXXX XXXXX a problem that, as I told you, we already submitted accounts in a pdf file to Companies House that show:
Tangible assets: £168000
Net current assets (£10000)
Net assets less current liabilities £158000
Creditors due more than 1 year: £0
CAPITAL AND RESERVES:
Called up share capital £16
Freehold purchase fund £159784
Profit and loss account (£1800)
SHAREHOLDERS' FUNDS £158000
So, given that Companies House has this document, don't I need the CT declaration to HMRC to be compatible with it? Or should I change and resubmit the accounts to CH?
Chris, thank you for your reply.
You should use the aforementioned figures (in my last answer - amended figures) for your CT600 return.
At the same time, you should write to Companies House and file amended accounts. I have done that for clients in the past.
I hope this is helpful and answers your question and that there are no more issues.