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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4664
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am closing down my company and am filing CT600. The accounting

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I am closing down my company and am filing CT600. The accounting period is 1st May 2013 to 3rd October 2013. The total turnover for this period is £650 exclusive of VAT, with admin expenses of £354 and salary costs of £3,846 (only £301 was ever paid to the director -- the rest is an accrued amount) as well as £13 from the Flat Rate VAT Scheme.

Share capital is £2 total but not paid up. Bad debt of £210 was written off. There is an outstanding VAT bill of £55 to be paid in November.

Do I include the accrued salary as cost of sale or as a creditor?
Hello and welcome to the site. Thank you for your question.

As far as salary goes, you should reflect the total cost in profit and loss account and any unpaid amount should be shown as a creditor.
If the final accounts show a loss you can carry back these losses to an earlier year if there was a profit reported for year ended 30 Apr 2013.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

So, for:

AC14 - Cost of Sales: I would put £301? (paid salary)
AC20 - Admin Expenses: £354
AC22 - Other operating income: £13 (from Flat Rate scheme)

For a total of £8 gross profit? Followed by:

AC58 - Creditors (1 year): £55 (VAT bill)
AC64 - Creditors (Over 1 year): £3,553 (accrued salary + an unpaid expense)

For a total of -£3,608 in total assets (liabilities) with £0 in paid up shares for a total shareholder fund of -£3,608?

Matthew, thank you for your reply.

AC14 = £3,846
AC58 = (55 VAT bill +3,545 accrued salary +8 unpaid expense)

AC64 = nil

AC40 will read -£3,537

AC74 will be balance on (AC75+AC40)

I hope this is helpful and answers your question. and 2 other UK Tax Specialists are ready to help you

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