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Hi, I am having a problem with CT600. My company has fixed

Hi, I am having a problem...
Hi,
I am having a problem with CT600. My company has fixed assets (freehold property) of £168000 in AC48. Liabilities are £10000 in AC60 so Total assets less liabilities in AC62 and AC68 of £158000.

Under Capital and Reserves, I have Shares in AC70 at £16. Revaluation has never taken place so AC76 is 0.
In order that Total Shareholder Funds AC80 equal AC68, I thus need to declare that P&L Account is £157984. But the actual cumulative P&L since the company was founded is -£1800. So I don't see anywhere under Capital and Reserves to list the fixed assets. The figure of £157984 bears no relationship to true profit, which has always been negative.
We had an accountant do the Companies House Annual Return some time ago, on paper. The corresponding Capital and Reserves section declared:
Called up Share Capital 16
Freehold Purchase Fund 159784
Profit (-Loss) -1800
SHAREHOLDERS' FUNDS 158000

This was accepted, but the CT600 form has nowhere to put the 159784 figure. The accountant is no longer with us.
Any help most gratefully accepted, thank you.
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9/3/2013
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 5,058
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hello, if you have any questions or need further clarification after reading my answer please let me know.

Thank you for your question..

Please clarify for me -
How was the freehold property funded?

Did the director fund the purchase with own funds or is there is loan in the company's books?

If funded by own funds, is it long term loan?

Many thanks
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Customer reply replied 4 years ago

Hi,


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


 

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.

 

Many thanks

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Customer reply replied 4 years ago

Hi,


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.


Thanks


Chris


 

Chris, thank you for your reply and additional information.

I would like you to consider a presentation I will post in about an hour's time.

many thanks

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Customer reply replied 4 years ago

OK, thanks a lot. I'll wait for it.


Chris


 

Chris, thank you for your patience.

Based on information given I wish you to consider this presentation.

My rationale behind the figures is -
Original investment of £160,000 (10,000 x16) was used to fund the freehold. Of this only £16 paid for called up share capital and the balance is long term loan by the shareholders/investors. If the figure is less than £159.984 then change it and show the difference within current assets/current liabilities i.e Boxes AC52 to AC58

Your accumulated losses to date are £1,800. Monies raised from ground rent and other sources have funded administration costs.

I am not sure what the bank balance was at year end date. You say there were current liabilities of £10,000 at year end.

At present I have used the accumulated losses to equal creditors - Box AC58



BALANCE SHEET Box No. This year
intangible assets AC42 0
tangible assets AC44 160,000
TOTAL FIXED ASSETS AC48 160,000
stocks AC50 0
debtors AC52 0
cash at bank and in hand AC54
TOTAL CURRENT ASSETS AC56 0
creditors due within one year AC58 1,800
NET CURRENT ASSETS AC60 -1,800
TOTAL ASSETS LESS CURRENT LIABILITIES AC62 158,200
creditors due after more than one year AC64 159,984
provision for liabilities AC66 0
TOTAL NET ASSETS AC68 -1,784
CAPITAL AND RESERVES Box No. This year
called up share capital AC70 16
revaluation reserve AC76 0
profit and loss account AC74 -1,800
TOTAL SHAREHOLDERS FUNDS AC80 -1,784
Difference xxxx 0


Please review these and let me have your comments.

If you need more information please let me know before you rate my service.

I hope this is helpful and answers your question. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

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.

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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.

 

BALANCE SHEETBox No.This year
intangible assetsAC420
tangible assetsAC44168,000
TOTAL FIXED ASSETSAC48168,000
stocksAC500
debtorsAC520
cash at bank and in handAC54200
TOTAL CURRENT ASSETSAC56200
creditors due within one yearAC5810,000
NET CURRENT ASSETSAC60-9,800
TOTAL ASSETS LESS CURRENT LIABILITIESAC62158,200
creditors due after more than one yearAC64159,984
provision for liabilitiesAC660
TOTAL NET ASSETSAC68-1,784
CAPITAL AND RESERVESBox No.This year
called up share capitalAC7016
revaluation reserveAC760
profit and loss accountAC74-1,800
TOTAL SHAREHOLDERS FUNDSAC80-1,784
Differencexxxx0


f you need more information please let me know before you rate my service.

I hope this is helpful and answers your question. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

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.

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Customer reply replied 4 years ago

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?


 


Thanks


Chris


 

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.

taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 5,058
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Chris, thank you for accepting my answer.

If I can be of any help in the future, please use this service and ask for me to answer your question.

Good luck.
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