BBLS and CT600

[BlueDress1]

Just wanted to query if BBLS needs to be entered into ‘creditors due in next year ‘ on CT600 return . My H has a very simple tiny second business that is a solvent company that he took a £9k loan on in 2020 due to not being able to trade at all for around 18 months in that period due to restrictions - I do the return as it is an easy one but realised I had never added this in to the ‘monies due’ - it is only a year off being fully paid now and I’m not sure if I should go back and amend. It doesn’t obviously affect tax, more just the records held.

 

[Ziggy2024]

Just wanted to query if BBLS needs to be entered into ‘creditors due in next year ‘ on CT600 return . My H has a very simple tiny second business that is a solvent company that he took a £9k loan on in 2020 due to not being able to trade at all for around 18 months in that period due to restrictions - I do the return as it is an easy one but realised I had never added this in to the ‘monies due’ - it is only a year off being fully paid now and I’m not sure if I should go back and amend. It doesn’t obviously affect tax, more just the records held.

How have you accounted for the loan in the financial statements? And how are you filing the CT600? This will determine the answer to the question.

 

[BlueDress1]

Filed all Ct 600 online myself and haven’t accounted for it at all , as it asks if you’ve had money for furlough or grants or eat out to help etc - none of which applied. I know it doesn’t count for income/turnover , although clearly I’ve not used the payments going out as an expense as I know you can’t do that- just the interest - which is why I’m asking if it should indeed be in there under ‘becoming due in next 12 months ’ - it just occurred to me today when doing this years , as if so I will need to go back and amend - it hadn’t been queried on previous ones . Do HMRC know though if companies received BBBL?

 

[Ziggy2024]

If you haven't accounted for it then your accounts have been incorrect, you say you have included the interest but how have you done that without including the loan itself?

To answer your question, yes the loan should have been included. I think potentially you may have been completing the accounts / CT600 incorrectly based on your answer so it may end up being more than just the loan to correct but it can be corrected in the current year. HMRC will not care as long as the tax is correct & paid.

Best advice is to have an accountant review and assist in completion of the accounts.

 

[MyAccountantOnline]

Just wanted to query if BBLS needs to be entered into ‘creditors due in next year ‘ on CT600 return . My H has a very simple tiny second business that is a solvent company that he took a £9k loan on in 2020 due to not being able to trade at all for around 18 months in that period due to restrictions - I do the return as it is an easy one but realised I had never added this in to the ‘monies due’ - it is only a year off being fully paid now and I’m not sure if I should go back and amend. It doesn’t obviously affect tax, more just the records held.

The company accounts must include all monies owed by the company - loans do therefore need to be included. You apportion the total owing between that repayable within 12 months and after 12 months.

As already mentioned how have you completed the accounts without showing the funds coming in from the loan? Presumably the loan was paid into the company bank account? If so how is the bank balance correct in your company accounts?

 

[DWS]

2 misconceptions here by the OP,
1. The accounts are easy, which has been shown that they are not as the ones submitted over many years look to be incorrect.
2. Because the accounts have never been queried before then they must be okay, HMRC very rarely check Company accounts, just because they are not queried does not make them correct.
As said above how have the accounts been prepared if the BBL does not appear in them, bank must have received the loan so where is the other half of the double entry?
How have you managed to balance the Company Balance Sheet without the above double entry?