CT600 - Called up share capital

[ndocherty]

I really do apologise if this has been addressed in another thread - I have read through a few and still can't quite get my head around it.

I'm stuck with what to enter for 'Called up share capital' (AC70) in the CT600 form.

My company information states:

Share Capital
Currency: GBP
Number of shares: 1000
Aggregate nominal value of issued shares: 1000

Share class: Ordinary
Shares Issued: 1000
Amount paid: 0
Amount unpaid: 0
Total aggregate value of shares issued: 1000​

The only transactions that my business has had during the year were:

Payment for Services: 1375.00
Cost of Sales: (96.47)
Annual Return: (13.00)

Profit (Loss): 1265.53​

As far as I am aware my CT is £253 leaving me a retained profit of £1013.

I am stumped with what to enter in AC70.

Any help with this would be very much appreciated.

 

[dimakenag]

I am not accountant and I would like to hear the answer from accountant as well on this question.
But in my understanding if the value of each of your shares is £1 each than you should enter £1000 in box AC70.
Have you actually paid £1000 in the company bank account? Because if not this will be classed as debtor on accounts I believe.

 

[ndocherty]

No, I haven't paid into the company.

 

[dimakenag]

Well my friend, I am in the same boat as you.
I really hope some of the qualified accountants could explain this better, but as I understand Called up share capital' (AC70) should be £1000 (if each of your shares value is £1 each).
But you also need to include £1000 in balance sheet as debtor or as cash in hand, because you didn't actually paid for your shares into company bank account (same as me).
Forget me if I am wrong on this, cause I'm trying to wrap my head around it also.

 

[MyAccountantOnline]

In that case you owe the company £1,000 for shares - the share capital is £1,000 and you need to show a debtor of £1,000 on the balance sheet.

 

[ndocherty]

Thanks for that answer - you've finally set things straight in my head.

Is there any disadvantage to my being indebted to the company by £1000?

I am looking to wind things up and start over as a sole-trader and trying to work out the best way forward.

 

[dimakenag]

No disadvantage to you, just debt to the company as far as I know, which should be paid up eventually.

 

[nelioneil]

Thanks for that answer - you've finally set things straight in my head.

Is there any disadvantage to my being indebted to the company by £1000?

I am looking to wind things up and start over as a sole-trader and trying to work out the best way forward.

I believe it a company gets into difficulty and goes through a formal liquidation process, a director is liable up to the unpaid share capital.

Though maybe someone can confirm this?

Obviously in your case if the company is simply getting struck off, then it really does not matter.

 

[MyAccountantOnline]

I believe it a company gets into difficulty and goes through a formal liquidation process, a director is liable up to the unpaid share capital.

Though maybe someone can confirm this?

Obviously in your case if the company is simply getting struck off, then it really does not matter.

That's my thoughts too.