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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Have filled in my CT600, but can not get Statutory Accounts

Customer Question

Have filled in my CT600, but can not get Statutory Accounts Notes "Profit and Loss Account" to balance, any ideas where I am going wrong.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question. It should be simple, but I know what you mean! The CT600 as per the HMRC system and reality appear quite incapable of reconcilliation. Make sure that the data you have actually entered is correct as the computerised system combines balances which according to conventional accounting practice should be seperate. Once you have done that, and there is at least one field where a zero or a blank cannot be accepted, you have to stick a '1' in there you should be right. If not then just add another debtor or creditor to the data to get it to balance. You can take it out again on the first day of the new acount as a prior year adjustment. Another source of error on the P & L account might be an incorrect last year's brought forward position. For the computerised CT600 it must be the one on the last computerised return, not one's cherished manual acounting system.

 

Don't forget to tick the box to use your CT 600 return as a means of passing accounts to Companies House. Saves an awful lot of bother later! I find the system infuriating and I am both a Chartered Certified Accountant and a Chartered Secretary. Under the old manual system a CT return took a couple of minutes each time, now it takes rather longer! What was Hutber's Law? Oh yes, Improvement means Decline!

 

Hope I have been of some assistance in pointing you in the right direction.

Customer: replied 2 years ago.

Hi Keith


 


Is there any way I can give you some figures to have a look at, they all seen correct to me, so I am afraid I am none the wiser.

Expert:  bigduckontax replied 2 years ago.

You do not surprise me. The solution is to insert a notional debit or credit as either a debtor or creditor to make it balance!

 

You can run the numbers across me if you like.

Customer: replied 2 years ago.

Still confused, the Profit and Loss Account balances, it is only when I am trying to do the Statutory Account Notes that is does not make any sense.

Expert:  bigduckontax replied 2 years ago.
Ah, then be as economical as you can with these notes, They tend to proliferate on one on the computerised CT600. Just put in the necessary figure to achieve the balance when filling in the notes. I know it jars, but I find it is the only way. I have reduced my notes data on this system to the absolute minimum.
Customer: replied 2 years ago.

The trouble is I can not get them to tally, and putting in random figures to make it tally does not work, as box AC218 must equal Box AC75, etc I need to know where it is I have gone wrong with this


 

Expert:  bigduckontax replied 2 years ago.
Then you have to go back into your main return to adjust it. The random figure must be on both sides of the return system to make it work. I have this problem every time I try to file the CT600. it's just a case of juggling numbers somewhere to fit.
Customer: replied 2 years ago.

Don't really want to juggle the figures as you put it, as they are true and correct.

Expert:  bigduckontax replied 2 years ago.
I am well aware of that, but you have to swallow your pride and make the adjustment. Otherwuse you will, never get the CT600 away. Just make sure that the profit figure declared for CT liability is correct.
Customer: replied 2 years ago.
Relist: Answer quality.
I don't think I have been given an answer. Just told to juggle figures around. I am more confused now than I was before I came on here.
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise what your problem is I will help you as I have helped many customers trying to file CT600 Return using HMRC software.

Please let me have some figures for boxes identified as follows:

Description of account Box This year Box Last year
No. Amount No. Amount
PROFIT AND LOSS
profit or (loss) for current year after tax ac36 0 ac37 0
dividends for the period ac39 0 ac40 0
net balances transferred to reserves ac40 0 ac41 0
STATUTORY ACCOUNTS NOTES
profit and loss - opening balance ac184 0 ac215 0
profit for the period ac185 0 ac216 0
equity dividends paid ac186 0 ac217 0
retained profit ac187 0 ac218 0

TOTAL NET ASSETS AC68 0 AC69 0
Description Box This year Box Last year
of account No. Amount No. Amount
CAPITAL AND RESERVES
CALLED UP SHARE CAPITAL AC70 0 AC71 0
REVALUATION RESERVE AC76 0 AC77 0
PROFIT AND LOSS ACCCOUNT AC74 0 AC75 0
TOTAL SHAREHOLDERS FUNDS AC80 0 AC81 0
Difference xxxx 0 xxxx 0


many thanks
Customer: replied 2 years ago.

2013 2012


 


Box AC36 21778 5664


Box AC39 0 0


Box AC40 21778 5664


 


Box AC68 19002 18098


 


Box AC70 100 100


Box AC76 0 0


Box AC74 18902 17998


Box AC80 19002 18098

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for providing additional information..

Please clarify for me.. have you been trading for more than two years? If so, I would like to know the figure you had in box AC75 when you filed last year's CT600. .. Assuming you had trading in previous years then I would make AC75 (17998-5664) = 12,334

Many thanks

Customer: replied 2 years ago.

Yes been trading more than two years. Box AC75 total for the prior year was -91.00 (minus ninety one pounds)

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply...

I have input your numbers and there is a big difference as shown

BALANCE SHEET Box This year Box Last year
No. Amount No. Amount
total net assets ac68 19,002 ac69 18,098
Description of account Box This year Box Last year
No. Amount No. Amount
CAPITAL AND RESERVES
called up share capital ac70 100 ac71 100
revaluation reserve ac76 0 ac77 0
profit and loss account ac74 18,902 ac75 17,998
total shareholders funds ac80 19,002 ac81 18,098
Description of account Box This year Box Last year
No. Amount No. Amount
PROFIT AND LOSS
profit or (loss) for current year after tax ac36 21,778 ac37 5,664
dividends for the period ac39 0 ac40 0
net balances transferred to reserves ac40 21,778 ac41 5,664
STATUTORY ACCOUNTS NOTES
profit and loss - opening balance ac184 5,573 ac215 -91
profit for the period ac185 21,778 ac216 5,664
equity dividends paid ac186 0 ac217 0
retained profit ac187 27,351 ac218 5,573



Basically,
Box AC74=AC187 and
Box AC75=AC218

In your case Box AC75=17,998 and Box AC218=5,573.

If your P&L balance in the balance sheet in previous year minus one was AC75=-91, then how did you arrive at AC75=17,998 in previous year when the profit for the year was only 5,664.

Please revisit and let me know..
Expert:  taxadvisor.uk replied 2 years ago.

Please complete values for prior year in table below:

BALANCE SHEET Box This year Box Last year Box Prior year
No. Amount No. Amount No. Amount
total net assets ac68 19,002 ac69 18,098 ac69 0
Description of account Box This year Box Last year Box Last year
No. Amount No. Amount No. Amount
CAPITAL AND RESERVES
called up share capital ac70 100 ac71 100 ac71 100
revaluation reserve ac76 0 ac77 0 ac77 0
profit and loss account ac74 18,902 ac75 17,998 ac75
total shareholders funds ac80 19,002 ac81 18,098 ac81 100
Description of account Box This year Box Last year Box Last year
No. Amount No. Amount No. Amount
PROFIT AND LOSS
profit or (loss) for current year after tax ac36 21,778 ac37 5,664 ac37
dividends for the period ac39 0 ac40 0 ac40 0
net balances transferred to reserves ac40 21,778 ac41 5,664 ac41 0
STATUTORY ACCOUNTS NOTES
profit and loss - opening balance ac184 5,573 ac215 -91 ac215
profit for the period ac185 21,778 ac216 5,664 ac216 0
equity dividends paid ac186 0 ac217 0 ac217 0
retained profit ac187 27,351 ac218 5,573 ac218 0

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