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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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I'm filling out my micro-entity accounts to file to

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Hello, I'm filling out my micro-entity accounts to file to Companies House and HMRC - got 96.08 as my turnover and 411 as my expenses for the reported period...where shall I put expenses: staff costs or other charges?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site. Thank you for your question. Unless they are payroll related, please enter them within other costs. I hope this is helpful and answers your question. If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.

Hello, and thank you for the reply. Other charges stand for loans and interest - should expenses that I paid from my personal credit card be definitely covered by AC425-Other Charges? This would mean a loss of around 315 (411-96.08) - am I right to understand, that it will be the balance sheet falling under the micro entity definition (i.e. balance sheet lo more than 316)?

Expert:  taxadvisor.uk replied 1 year ago.
Svetlana, thank you for your reply.

Other charges AC425 would include interest charges and other expenses excluding payroll costs and depreciation charge as these two are reported separately. Expenses paid for from your personal credit card would be covered in AC425.

Micro-entity accounts show limited information both for profit and loss account and balance sheet.

More information of micro-entity companies can be found here

https://www.gov.uk/prepare-file-annual-accounts-for-limited-company/prepare-annual-accounts


I hope this is helpful and answers your question.
taxadvisor.uk and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Many thanks, ***** ***** and loss is calculated right in the HMRC pdf form, but for some reason I can't proceed with my expenses in the balance sheet: I'm trying to put them under AC58 Creditors: amounts falling due within one year, but the form wouldn't accept a negative number (96-411=-315) in AC60 Net current assets (liabilities), which in its turn affects Capital and Reserves (AC80 - should be equal to AC60). Where shall I put my expenses in the balance sheet then? Thank you.

Expert:  taxadvisor.uk replied 1 year ago.
Svetlana, thank you for your reply...

There is a glitch with using HMRC micro-entity accounts software if you have net current liabilities.

Expenses go into profit and loss account with corresponding credit entry in creditors (director's account).

I don't use micro-entity accounts version for this very reason.
I use the abbreviated accounts version for all my clients and suggest you use that too.

I hope this is helpful
Customer: replied 1 year ago.

Hello and thanks a lot for your help, I've successfully filed my Abbreviated accounts to Companies House and tax return to HMRC. Please, confirm, if you have received your credit for the services and let me know, if there're any troubles with that. Have a lovely weekend! Svetlana

Expert:  taxadvisor.uk replied 1 year ago.
Svetlana, thank you for your reply.

I have received credit for the answer.
Thank you.

Best wishes and wishing you a pleasant weekend too.

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