CT600 Rounding

[JLeeR]

Hi

Does anybody know which way I'm supposed to round to the nearest pound when doing the CT600?

Mine is out by £1. I've tried altering the figures to round up, down, to the nearest pound... everything, but it always ends up wrong. For example, many people just say alter a figure... so I decrease my cost of sales by £1 (rounding a .95 figure down instead of up). That's fine, but then the corporation tax moves from .4 to .6, so I need to round it UP now instead of DOWN, which simply cancels out the £1 alteration I had made before... which leaves me back with figures that don't balance (AC68 - total net assets doesn't match AC80 - total shareholders funds).

We didn't want to use an accountant for this company because it's not making any real income at the moment.

Please see this page for three screenshots (you will have to remove the spacing):

http :// imgur . com/a/LoAKh

Any ideas? I've been stuck on this for hours now, it.s 10 past 1 in the morning and it has actually given me a headache... sure, it may be time to start thinking about passing it to an accountant, but there just has to be a simple solution to this?

Thanks

P.s. I searched and searched for HMRC's guide on rounding up or down for this, but couldn't find the info anywhere. Can anyone point me to it? Why do they make it so difficult... it should say on the form quite clearly whether to round up or down!

 

[JLeeR]

and here's the accounts:

http :// imgur . com/a/Ip7qM

 

[SBlundell]

How about not adjusting the profit & loss account at all - re-round something on the balance sheet instead. So if your Net Assets doesn't match Shareholders' Funds, adjust trade creditors by £1 to make it work.

Doesn't change profit therefore doesn't change corporation tax

 

[JLeeR]

Is this seriously what we're expected to do? I don't see why they don't just accept pennies and then handle it for us.

 

[JLeeR]

The only things I can adjust on my balance sheet to bring it down by £1 are the creditors due within one year... which is just my £135 corp tax, surely I can't just drop that down to £134? Then it wouldn't even match the corp tax in the P&L. and the creditors due in over one year which is just the £119 directors loan account and it would be odd for this not to match last year's because these loans have not been repaid yet.

 

[Scalloway]

Companies House and HMRC are not interested in the intimate detail of your accounts as long as you file them and pay the correct tax. The first time I filled in a CT600 I took me a while to figure out the roundings.

 

[JLeeR]

Companies House and HMRC are not interested in the intimate detail of your accounts as long as you file them and pay the correct tax. The first time I filled in a CT600 I took me a while to figure out the roundings.

Ok well I increased the "creditors due over one year" by £1. That's our director loan accounts, instead of rounding down to £119, I've rounded it up to £120. Everything balances now. Thanks for your help. It seems crazy they don't just accept pennies though and work it out within the PDF.

now I'm stuck with the statutory accounts notes on transactions with directors. It won't let me put a minus figure in for the starting figure?!

http :// screencloud.net /v/8N94

Despite the balance at the end of last year being a minus figure, as the company owes us money.

http :// screencloud.net /v/glM8

 

[Scalloway]

I think this is for a director who has taken money from the company.

Box AC304A Name of director receiving advance or credit

If the company owes you money ignore this.

 

[JLeeR]

Does it matter that I added this section last year, and that the balance there is a minus figure? How do I show that the payment has been made to the director and the balance is now £0 rather than £-80 - or should it just be ignored?

 

[Scalloway]

I would just ignore it.

 

[SBlundell]

now I'm stuck with the statutory accounts notes on transactions with directors. It won't let me put a minus figure in for the starting figure?!
---
Despite the balance at the end of last year being a minus figure, as the company owes us money.

If the company owes money to the directors (i.e. the directors are a creditor) this is not a 'Transaction with Director'.

It is, however, a 'Related Party Transaction' - although I don't know how the HMRC software deals with this.