Called Up Share Capital....

[Panda173]

Hi All,

Hope someone can help!
I am trying to fill in the company CT600 form. We are a small business in year 3 of trading. I am doing all accounts myself, I have some experience in accounts in the business I used to work in.
We have 300 shares (value of £1 each split between 3 directors).
On the last CT600 I was advised by a accountant owning friend. who advised a journal for the shares.
If I look back through sage I can see that we have given this journal description PAID UP SHARE CAPITAL. It is a credit of 300 to share account 3000 and a debit to each director loan account (on the balance sheet).

I am filling in the CT600 with the numbers on the BS & PL but just cannot have a "happy" form unless I either remove the Share capital from last year and reduce the amount owed to the directors...
I am really stuck and have spent many hours trying to get the form right... Most importantly I want to report the true figures to HMRC..
We directors have never paid in £300 to the company for these shares, but I presume that in the loan account the company can call it in at any time, and we are of course happy to pay in if required....

Can anyone give me a quick explanation , or a simple example of how these boxes should be filled, or some advise on if I have entered the journal incorrectly or something!

Any help much appreciated!



Christine

 

[Scalloway]

Without seeing your Sage balance sheet it is hard to give a hard and fast answer. At its very simplest it should read

Assets
Loans due by directors.......£300

Capital and reserves
Called up share capital......£300

Remember if the journal was done last uear it is in the books and can be forgotten about. You don't need to add anything to the Sage figures this year.

 

[Mitchells Bristol]

Hello Christine

I haven't used the HMRC online tool, so I will be guessing what its problem is slightly. Does it object to you having "overdrawn director loan accounts" without additional disclosure?

It may be worth trying to reclassifying the debit £300 as "other debtors" to see if that makes the return more happy...

 

[Panda173]

Hi,

Thanks for the really prompt replies!!

Maybe a bit more detail will help?
I posted the journal in last years figures, as you (scalloway) described..
I did not think I needed to do anything in sage for this year, but the CT600 p-df file keeps coming up red... (depending on figures..)

The BS in Sage (which I think is correct) currently stands as follows:

Total Assets = £95248.40 (includes Fixed Assets , Debtors Bank Account)
Total Current Liabilities = £13192.64 (incl creditors short term, taxation, vat)

Total Assets less Liabilities = £85167.07

Long Term Liabilities = £410(directors loan accounts).

Total Assets Less Liabilities = £89737.07

Capitals & Reserves =
Share Capital £300
Reserves £10049.21
P&L Account £79387.86
Total = £89737.07

The HMRC CT600 PDF form asks for the following info

Opening Balance - Last Year - £300 (Shares???)
P&L Prior period = £28950
Equity Dividend Paid = £3900
Retained Profit = £25050

Current Year
Reserves from last year £25050
Profit for Year £79387.86
Dividends Paid £15000

Reserves to carry forward = £89437

This example adds up... , as I have left the shares in last year.. but I am concerned that there are no called up shares in the current year figures...
The term they use is as shown below...

Called up share capital ?
[/B
Allotted, called up and paid
Previous period 2011
Ordinary Shares
Number of shares 300
Nominal value per share £1
Total £300

Current period 2012
Same fields as above..

But I have left this section empty...

I think I am struggling with the terminology!!

The page title is Called up share capital
But then it refers later to Allotted, called up and paid

They were called up and paid in 2011... so maybe it is right with the current figures!?

Can you see I have been looking at this bloomin form too long!

Hope that helps clarify, awaiting any ideas with anticipation!!

Christine

 

[Scalloway]

I don't know which boxes you are trying to complete. Your Balance Sheet continued page will have these boxes which can be completed from Sage thus:

Capital & Reserves =
AC 70..Share Capital £300
AC76...Reserves £10049.21
AC74...P&L Account £79387.86
AC80...Total = £89737.07

 

[Panda173]

Hi,

Funny enough I was at a point yesterday (or was it saturday!)
when I thought I had to fill this box AC76 in but then it calls it
"Revaluation reserve"
and I figured we had not revalued anything..

OK, so in that case then does the share capital go in both current and prior year
I.E.
Called Up Share AC70 300 AND AC71 300
or just one of these??

For info.. (and trying not to confuse the situation!)
The boxes I was referring to earlier were
AC215 to AC218 and AC184 to AC187 (although they are pre-calculated from earlier figures)..

Christine

 

[Scalloway]

Hi,

Funny enough I was at a point yesterday (or was it saturday!)
when I thought I had to fill this box AC76 in but then it calls it
"Revaluation reserve"
and I figured we had not revalued anything..

As I do not know why you have a reserve that is the only place I could see to put it.

OK, so in that case then does the share capital go in both current and prior year
I.E.
Called Up Share AC70 300 AND AC71 300
or just one of these??

If it was £300 in your last years balance sheet it must go in both boxes

 

[Panda173]

HI scalloway,

first of all thanks so much for your help!!

We have not revalued anything.. I had to change the financial year and ended up reentering all current fnc year transactions into a new sage setup..
For Apr 2011 to Mar 2012..
I put last years profit into the 'reserves' account. So thats why it is there.. Is this wrong?
Much appreciated

Christine

 

[Scalloway]

The last years profit should ba part of the Profit and Loss Account. There is a page farther on where you will show the movements on that account.