Help with abbreviated accounts please!

[Matt100]

Hi,

My abbreviated accounts are due to companies house on 3/10/09 which I am trying to complete at the moment and the CT600 is due on the 9/12/09. I have already calculated my corporation tax as best as I can and this has already been paid, although I have not submitted my full accounts as yet. My accounts should be simple as I worked as a consultant selling just my time, the only deductions are expenses are travelling and stationary etc. I set my company up as me being the sole director with no PAYE account, and as I wanted to keep my accounts 'simple' I do not draw a salary just dividends (after allowing for Corporation tax). I thought I could do it myself as I have at least a couple of brain cells but as shown in the forums, it's a legal minefield if not done correctly. I 'm struggling through the companies house abbreviated template now as this needs to be done by October, I have taken advice from the forum and have already asked for a quote from a member of the forum to complete my CT600. Can somebody just check I have filled out the below correctly as I'm not sure where the dividends should be declared, it would really be appreciated!:)

The share capital of the Company is £1000.00 divided into 1000 Ordinary £1.00 Shares of £1.00 each, of which I have 1 share.
My turnover is £34525.
My expenses are £10640.12 giving a profit of £23884.88
I have calculated my corporation tax as £4950.38
Dividends drawn £18933

Called up share capital not paid ( £1)

Fixed assets
Intangible ( ____ £)
Tangible ( ____ £)
Investments ( ____ £)
Total fixed assets (AUTO)

Current assets
Stocks ( ____ £)
Debtors ( ____ £)
Investments (£18933)
Cash at bank and in hand (£0)
Total current assets (18933)

Prepayments and accrued income ( ____ £)
Creditors: amounts falling due within one year (Normally negative) ( ____ £)

Net current assets (£18933) (AUTO)
Total assets less current liabilities * (£18934)

Creditors: amounts falling due aftermore than one year (Normally negative) ( ____ £)
Provisions for liabilities and charges (Normally negative) ( ____ £)
Accruals and deferred income(Normally negative) ( ____ £)
Total net assets (liabilities) * (£18934)
Capital and reserves
Called up share capital (£1)
Share premium account ( ____ £)
Revaluation reserve ( ____ £)
Other reserves ( ____ £)
Profit and loss account (£18933)
Shareholders funds * £18934 (AUTO)

[Jenni384]

I'm going to answer the question as posed only. Hopefully whoever takes on the CT600 will be able to advise you on the various other issues.

If you've drawn all of the profit as dividend then the P&L account is Nil.

From the information provided (and bear in mind this post is based on this only and is no substitute for an accountant giving things a proper look over), your balance sheet totals should be £1, assuming you took all the profit after tax as a dividend and the CT liability is matched by an equal asset to cover it.

I'm not sure what the investments are in the top half of the balance sheet, but the bottom half should be share capital £1 and P&L account Nil.

In theory, the CT should, if it was due (which it was) but not paid at the year end, be shown as a current liability (Creditors: amounts falling due within one year).

This should be offset by a current asset (bank balance?).

Are you sure you had nothing in the bank at the year end? It's possible but unlikely.

[Jaydee]

Matt

From the info provided, the balance sheet should look something like this:


Called up share capital not paid ( £1)

Fixed assets
Intangible ( ____ £)
Tangible ( ____ £)
Investments ( ____ £)
Total fixed assets (AUTO)

Current assets
Stocks ( ____ £)
Debtors ( ____ £)
Investments (£0)
Cash at bank and in hand (£4,952) = 23,885 - 18,933 (assuming you had no debtors)
Total current assets (4,952)

Prepayments and accrued income ( ____ £)
Creditors: amounts falling due within one year (Normally negative) ( 4,950£) (The unpaid CT)

Net current assets (£2) (AUTO)
Total assets less current liabilities * (£3)

Creditors: amounts falling due aftermore than one year (Normally negative) ( ____ £)
Provisions for liabilities and charges (Normally negative) ( ____ £)
Accruals and deferred income(Normally negative) ( ____ £)
Total net assets (liabilities) * (£3)
Capital and reserves
Called up share capital (£1)
Share premium account ( ____ £)
Revaluation reserve ( ____ £)
Other reserves ( ____ £)
Profit and loss account (£2) (23,885 - 18,933 - 4,950)
Shareholders funds * £3 (AUTO)

But this is an example of how an accountant advising you on a tax-efficient salary policy would have likely saved you more in Corporation Tax than their fee - and also all of this would have been done for you - so a win-win situation for you.

Good luck with the filing - but try not to leave it too late as Companies House online services are likely to have some downtime with the updates required for the new Companies Act in the next few days.

[Matt100]

Thanks for your reply.. First of all you worry me a bit when you mention 'other issues'! Do you mean you can see other problems with my accounts? The £18933 I've shown as an investment was a calculation from Turnover minus expenses minus Corporation Tax and meant to show amount available for dividends obviously from what you said this is incorrect.

Does that mean you don't actually have to state how much money was drawn as dividends or does it perhaps go in the notes the P&L?

I have made corrections and the abbreviated accounts now look like this....Can you just confirm from the information I have given, that I have also put the correct figure in the correct box for the share capital? Hopefully I can then press the submit button? Thanks for your help

The share capital of the Company is £1000.00 divided into 1000 Ordinary £1.00 Shares of £1.00 each, of which I have 1 share.
My turnover is £34525.
My expenses are £10640.12 giving a profit of £23884.88
I have calculated my corporation tax as £4950.38
Dividends drawn £18933

Called up share capital not paid ( £1)

Fixed assets
Intangible ( ____ £)
Tangible ( ____ £)
Investments ( ____ £)
Total fixed assets (AUTO)

Current assets
Stocks ( ____ £)
Debtors ( ____ £)
Investments (£____)
Cash at bank and in hand (£4950.38)
Total current assets (£4950.38)

Prepayments and accrued income ( ____ £)
Creditors: amounts falling due within one year (Normally negative) (- £4950.38 )

Net current assets (£0) (AUTO)
Total assets less current liabilities * (£1)

Creditors: amounts falling due aftermore than one year (Normally negative) ( ____ £)
Provisions for liabilities and charges (Normally negative) ( ____ £)
Accruals and deferred income(Normally negative) ( ____ £)
Total net assets (liabilities) * (£0)
Capital and reserves
Called up share capital (£1)
Share premium account ( ____ £)
Revaluation reserve ( ____ £)
Other reserves ( ____ £)
Profit and loss account (£0)
Shareholders funds * £1 (AUTO)

[Jaydee]

Matt

"Other issues" may include IR35 compliance and optimum split of salary/dividend.

[RAL]

You said in your first post that you already paid corporation tax. If that is correct then you need to amend the figures for current asset and creditors falling within one year.

If ct is paid, then it is worrying that as per your accounts you are showing cash £4,950.38.

Do you have this cash on hand i.e. at bank? Have you reconciled your bank account?

[Matt100]

I have paid the corporation tax now as it was due early September this year, but my accounting year end was December 08 so I guess I have to show that money was in the bank at that point to pay the corporation tax? I do not have any money in the bank now as I have since ceased trading

[RAL]

I have paid the corporation tax now as it was due early September this year, but my accounting year end was December 08 so I guess I have to show that money was in the bank at that point to pay the corporation tax? I do not have any money in the bank now as I have since ceased trading

You are correct. My apologies for not reading the post properly.

[Matt100]

Don't apologise I haven't a clue what I'm doing it was just an assumption! I wish I had listened to people who said at the time to use an accountant....they certainly pay for themselves, I am now left with a painful CT600 to complete and also I'm sure I have set up my company in the least tax efficient way by not paying myself a salary...I wish I could re-write my accounts with a PAYE account but I would probably get heavily fined:mad:

Thanks for your help....

[Matt100]

One last post if anyone can help..Looking at my abbreviated accounts above what notes if any are required? With Companies house abbreviated accounts do you have to provide notes for every box that has a figure in it to justify how the figure was calculated?