Annual Report and CT computation

[haarko]

Hi all,

I'm a student with some experience of filing Companies House accounts and CT returns in last couple of years for my (very) small limited company. I have made a trading loss (with no tax to pay) for the first time and so I'm slightly confused whether I'm presenting the following note and computation correctly?


This is my note relating to taxation (from the financial statements) http://bit.ly/ibb1XO


And this is my CT computation http://bit.ly/gYVDZy


I think I've done everything correctly but without experience of this my confidence is not great and I can't be sure. :| Any advice from those with more experience would be really appreciated. Many thanks.

 

[elaine@cheapaccounting]

Get an accountant - of you have paid CT in the past you could get a refund. An accountant will be able to do this for you and it seems silly to miss out on a refund.

 

[GaryMc]

Your tax note is not correct - the 'effects of section' needs to be looked at again.

As Elaine says, you can carry back losses to recover tax paid in the past so it is worth looking at using an accountant.

 

[haarko]

Your tax note is not correct - the 'effects of section' needs to be looked at again.

As Elaine says, you can carry back losses to recover tax paid in the past so it is worth looking at using an accountant.

Thank you both - the refund will not be huge so I will be claiming the loss against future profit.

My affairs are very straightforward and I'm confident that my figures and calculations (e.g. trading loss, capital allowance and tax etc) are correct, my uncertainty relates to how to present this information in the above instances only.

I am happy to pay a professional to double-check my work but my previous accountant wants to charge me a minimum one hour of his time (almost as much tax as I paid last year!) for what may be 10-15mins. If you can recommend a professional who can offer more flexibility I would be very grateful?

Alternatively any further help on my original query is much appreciated also.

 

[elaine@cheapaccounting]

problem you have is that any accountant taking you on needs to do through client set up inc Money Laundering id checks etc - well those who are qualified do anyway

 

[MyAccountantOnline]

but my previous accountant wants to charge me a minimum one hour of his time (almost as much tax as I paid last year!) for what may be 10-15mins. If you can recommend a professional who can offer more flexibility I would be very grateful?

I don't think that's unreasonable - bear in mind its not just a case of reviewing your work the accountant will then have to correspond with you etc. Sounds very reasonable to me.

 

[GaryMc]

The capital allowances figures are gross in your docs whereas they should also be multiplied by the tax rate. If you look at 09, it is effectively saying 263 - 345 = 191

Should be 263 - 72 = 191 - the capital allowances in excess reduce the taxable profit so should be shown as a -ve.

2010 is a bit tricker than that although you again need to include a -ve capital allowances in excess figure.

The note is a reconciliation between tax on PBT (or LBT) and the current tax charge so should cast downwards. Yours don't at present

 

[haarko]

problem you have is that any accountant taking you on needs to do through client set up inc Money Laundering id checks etc - well those who are qualified do anyway

I'm not sure I understand. Client set up would only need to be done once. I'm happy to do this (and pay for this time). But as I've said, going forward my requirements are small, and queries are often quick and few and far between so to pay a minimum 1hr each time for 15mins meetings/phonecalls (which is what I was doing previously) is not cost-effective for me. But I do understand that this model is well suited for most.

 

[RAL]

Get an accountant

Looking at one of the OP's [URLNO="http://www.ukbusinessforums.co.uk/forums/showthread.php?p=1115160#post1115160"]post[/URLNO], He/She is providing accounting services!

To Op

If you are providing this service, I strongly suggest not to offer if you are not confident. Also get a software, which may take away half of your problem. For accounts production, vtsoftware, and tax TaxCalc

 

[haarko]

Thanks GaryMC - you've really helped me to understand this note!

Thanks for software suggestions RAL - as I said I have experience handling my own affairs so I do help other students with their accounts/tax where I am able and confident. Obviously where I am not confident, I say so and seek advice as I have above and previously.

Thanks again to all.

 

[elaine@cheapaccounting]

Well as we know - anyone can call themself an accountant.

They don;t have to know what they are doing. It is very much caveat emptor

 

[talkinpeace]

Providing services while still a student was a fast track to the back pages of Accounting and Business a few years back...

 

[RAL]

To OP

If you are providing this service, what I suggest to set up a link (business relationship) with a local accountant. You do up to the level you can do, then ask the accountant to take over from that point.

This way your clients are not guinea pig and receive a good quality advice. Also it is kind of an insurance for you that your work have been checked by a qualified and competent professional, so if there is a claim from the client for then you know who you can sue...

 

[haarko]

RAL - Thank you for your constructive comments, thats a great idea and to be honest it never occured to me. Although I disagree that these clients are "guinea pigs" as they have tended to be my friends and sometimes family. I do not claim to be a professional accountant and this is clear to them not only because they know me, but because I make it clear!

I would like to mention however that some of those I have helped did not even know they were liable to pay tax, or even that they had any sort of filing obligations. In those cases I was introducing these people to the tax system so I like to think that I was also doing something good, but maybe I'm giving myself too much credit! Anyway in this context your suggestion to link with an accountant is definitely a good one, I very much appreciate it - thanks again!