Annual Return

[pukkafish]

Hello everyone.

Sorry, I'm new to this and on top of that foreigner, so this is all a bit vague.

I've started a small business a while back on top of my day to day job.
Last year, I didn't make any profit, so I wasn't really concerned about Taxes and Annual Return.

This year, I've got a really really small profit. £180.
I was wonderind what I should put in the annual return this year.

I mean, is it possible to get the profit as a salary?
Or should I declare the profit as new shares?

I have a Limited company and I'm the only employee.

Any advice would be more than welcome.

Thanks a lot.

 

[robindunne]

Hello everyone.

Sorry, I'm new to this and on top of that foreigner, so this is all a bit vague.

I've started a small business a while back on top of my day to day job.
Last year, I didn't make any profit, so I wasn't really concerned about Taxes and Annual Return.

This year, I've got a really really small profit. £180.
I was wonderind what I should put in the annual return this year.

I mean, is it possible to get the profit as a salary?
Or should I declare the profit as new shares?

I have a Limited company and I'm the only employee.

Any advice would be more than welcome.

Thanks a lot.

Is there a reason you have a Ltd company with earnings this low?

 

[MyAccountantOnline]

Hello everyone.

Sorry, I'm new to this and on top of that foreigner, so this is all a bit vague.

I've started a small business a while back on top of my day to day job.
Last year, I didn't make any profit, so I wasn't really concerned about Taxes and Annual Return.

This year, I've got a really really small profit. £180.
I was wonderind what I should put in the annual return this year.

I mean, is it possible to get the profit as a salary?
Or should I declare the profit as new shares?

I have a Limited company and I'm the only employee.

Any advice would be more than welcome.

Thanks a lot.

Unfortunately regardless of profits with a limited company you still have to submit accounts and an annual return to Companies House, and accounts and a CT600 tax return to HM Revenue & Customs once a year.

Failure to do so is expensive in terms of penalties and charges.

Company accounts and tax are really, in my opinion, best dealt with by an accountant (I freely admit to being bias here) but the requirements are complex for non-accountants.

This may help a little -

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1073789098&type=RESOURCES

http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1083636762&type=RESOURCES

 

[pukkafish]

robindunne

I thought the Ltd company was the best to go for.
Is there a special turnover to be registered as a Ltd company?

MyAccountantOnline

Well, as you've seen my profit were £180 this year.
So, for the moment I can't have an accountant.

Most companies should employ web designer in order to create their websites. But most of them do it themselves ... It's all a question of costs at the end, unfortunately.

I know - and I will - submit the necessary forms.
My question was to know what I could do with the £180 profit !

I will check your links, thanks.

 

[elaine@cheapaccounting]

I'm afraid that it may not be a question of not being able to afford one - to avoid fines and penalties you may have to get one.

Have a read of this - Are you ready to be a director ...


http://www.cheapaccounting.co.uk/blog/index.php/are-you-ready-to-be-a-director/

 

[MyAccountantOnline]

In the circumstances you'd probably be best to close down the company and trade as a soletrader.

 

[elaine@cheapaccounting]

In the circumstances you'd probably be best to close down the company and trade as a soletrader.

Given that the compay has traded are you suggesting closing it down prior to filing of accounts, CT returns and payign the tax due on the small profit?

 

[CSBob]

I have to agree with Nicola's advice on this. If you're not serious about the business, it's not a business, it's a hobby - which just happens to make you a little pocket money on the side. You really don't need or want the regulatory hassles associated with using a Ltd company for your hobby. Close it down before you inadvertantly incur all sorts of penalties and late-filing fees, and then just run your hobby as a sole trader. It's far less hassle so far as legal requirements are concerned, and you can simply pocket your profits after paying the taxman his slice.

Above all, see an accountant to help with this transistion and avoid the costly penalties you're definitely going to face down the line if you continue as you have been doing.

 

[MyAccountantOnline]

Given that the compay has traded are you suggesting closing it down prior to filing of accounts, CT returns and payign the tax due on the small profit?

No - sorry OP to clarify I assumed you'd realise I meant going forward Elaine obviously knew this so thanks for mentioning it.

 

[elaine@cheapaccounting]

To clarify - as this business has traded then it does need to file accounts etc and then close it down

 

[MyAccountantOnline]

To clarify - as this business has traded then it does need to file accounts etc and then close it down

Yes indeed it does you cant just close it down.

Once the accounts and tax returns are completed, the tax paid etc and the company ceases trading you can apply to have the company struck off.

If you go to Companies House website do a search on striking off it explains the procedure. I would post a link but Companies House website seems to be on a go slow.

 

[elaine@cheapaccounting]

How to close your company down ..

http://www.cheapaccounting.co.uk/blog/index.php/how-to-close-your-limited-company/