micro entity accounts

[Dek]

I rent a building for hairdressing shop the upstairs storeroom has been converted into a flat ive been told the rent must go in other revenue( in micro entity ) although ive made no profit in turnover it tells me i have to pay corperation tax on the rent i have some losses but this will wipe it all out soon then i will have to pay it .What am i doing wrong soon i my have to shut the flat down and post larger losses . To try to save money ive been doing account myself as i was paying the accountant out of my pocket.

 

[MJ Holohan]

To be honest it sounds like you need to keep paying that accountant or get another to sort these things out. No one will be able to properly advise you without seeing your actual numbers

 

[MyAccountantOnline]

Without a lot more information, as above, no one is going to be able to offer much, if any help.

 

[Dek]

Without a lot more information, as above, no one is going to be able to offer much, if any help.

Ifill in micro entity accounts
turnover 42000
other income 5200 (rent from upstairs flat in building we rent)
Although profit including other income came to under £100 it says i owe £988 corp tax from the other income

 

[Jaydee]

Dek

If you made a £5,200 rental profit and yet only £100 overall then it must follow that you made a trading loss of £5,100

At the moment, what you have completed is calculating Corporation Tax at 19% of £5,200 = £988 and so all you need to do to correct this is to make a claim to offset your £5,100 trading loss against the rental income.

This will automatically reduce your tax liability to £19

 

[Dek]

Dek

If you made a £5,200 rental profit and yet only £100 overall then it must follow that you made a trading loss of £5,100

At the moment, what you have completed is calculating Corporation Tax at 19% of £5,200 = £988 and so all you need to do to correct this is to make a claim to offset your £5,100 trading loss against the rental income.

This will automatically reduce your tax liability to £19

I cant see where to make that claim i have noticed total losses for period says £21316 where do i claim it back from

 

[Jaydee]

where do i claim it back from

No idea as I do not know what software you are using.

If you are using the joint Companies House/HMRC submission then agents cannot use that, and so I have no experience of where the claim is to be entered.

Perhaps you could call a helpline and advise that you are trying to claim "sideways relief of a trading loss against rental profits" and they can then guide you.

 

[Dek]

No idea as I do not know what software you are using.

If you are using the joint Companies House/HMRC submission then agents cannot use that, and so I have no experience of where the claim is to be entered.

Perhaps you could call a helpline and advise that you are trying to claim "sideways relief of a trading loss against rental profits" and they can then guide you.

No idea as I do not know what software you are using.

If you are using the joint Companies House/HMRC submission then agents cannot use that, and so I have no experience of where the claim is to be entered.

Perhaps you could call a helpline and advise that you are trying to claim "sideways relief of a trading loss against rental profits" and they can then guide you.

Thank you i think i understand it now it askes you do you want to claim against losses this period just tick yes and it does it for you although we made a small profit the trading losses for period were far greater it shows losses brought forward then then the rent taken from it . but i thought it was taking from our losses from before so in three years i would loose all our losses and have to pay this corp tax . But i think im right in saying id have to make a lot more profit first .I have been thinking would i be better of as a sole trader