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bigduckontax, Accountant
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I need to complete a micro entity return for a ltd company

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I need to complete a micro entity return for a ltd company by 8th September. The only earnings for the reporting period were £2500 . I paid these to my self. Is this something you can help with? Gerry Mulcahy
Assistant: Thank you. Can you provide any more details to help us find you the right Expert?
Customer: the company name is ***** ***** providing social work services. I am the sole director/worker/beneficiary.
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

What exactly is your query? At present the company's accounts would be pretty simple.

Customer: replied 11 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  bigduckontax replied 11 months ago.

Please remember that as a director any payments to you by the company must be made through PAYE channels. A director is an employee per se.

Customer: replied 11 months ago.
Hello Keith ,I have tried to complete the Companies House online micro entity annual return. This is a online format for entering fixed and current assets etc. When I try to "validate" page 1 I get a message under the total net assets (liabilities) box "Current period: Shareholders' funds must be equal to the total net assets (liabilities)" in red. I do not know what I am entering incorrectly to produce this. Can you help me complete the Companies House online micro entity annual return? Gerry
Customer: replied 11 months ago.
Hello Keith, are you still there?
Expert:  bigduckontax replied 11 months ago.

Can you please verify what you mean by the 'annual return' Gerry? I do not wish to be pedantic, but the annual return, for which there is a fee of GBP 13, does not include accounts.

If you are trying to file Abbreviated Accounts then the easiest method is to use the extract procedure in the Corporation Tax (CT) Return. Here it is essential that before you attempt to enter data to ensure that firstly the balance sheet (BS) actually balances and secondly that data common to both the BS and the Profit and Loss Account (P&L) correspond. It is fatally easy the start this process with errors resulting in the message you are receiving.

Customer: replied 11 months ago.
I have been asked to file "the company's accounts" from incorporation 8.12.14 to 31/12/15. I was on the Companies House website, the online doc is titled "Micro Entity Balance Sheet.
Customer: replied 11 months ago.
My company is called MULG
Expert:  bigduckontax replied 11 months ago.

Are you sure that your balance sheet actually balances Gerry? Remember for this data the sum of the issued capital and the P&L balance are aggregated.

Customer: replied 11 months ago.
I am not sure we are the same page... so to speak. The only figures I entered were 1000 under fixed assets and 1000 under current assets (cash held). I left all the other entries blank.
Expert:  bigduckontax replied 11 months ago.

With respect, no wonder you are getting that error message. You have not included any entry for Shareholders' Funds so the account does not balance as I originally suggested.

Customer: replied 11 months ago.
Thank you, ***** ***** entry on page 1 referring to shares is the first one below. The company was incorporated with one share, va beCalled up share capital not paidFixed assets
Do you want to provide a Fixed assets breakdown?
Current: Total fixed assetsCurrent assets
Do you want to provide a Current assets breakdown?
Current: Total current assetsCurrent: Prepayments and accrued incomeCurrent: Creditors: amounts falling due within one yearCurrent: Net current assets (liabilities)Current: Total assets less current liabilitiesCurrent: Creditors: amounts falling due after more than one yearCurrent: Provisions for liabilitiesCurrent: Accruals and deferred incomeCurrent: Total net assets (liabilities) Current period: Shareholders' funds must be equal to the total net assets (liabilities)Capital and reserves
Do you want to provide a Capital and reserves breakdown?
Current:
Capital and reserves
Current period: Shareholders' funds must be equal to the total net assets (liabilities)
Expert:  bigduckontax replied 11 months ago.

So your capital and reserves would total GBP 2000.

Customer: replied 11 months ago.
I have switched to trying to complete the Companies House online abbreviated accounts format as you suggested.
Expert:  bigduckontax replied 11 months ago.

Is it working?

Customer: replied 11 months ago.
I have hit the same problem. getting the message ; Shareholders' funds must be equal to the total net assets (liabilities).The MULG company figures are fixed assets 1000; income for the period 2500; payments made/money taken out 2500, current assets therefore I assume nil/0? total net assets I assume 1000.On the online abbreviated accounts format I can enter the 1000 under fixed assets. Please advise where I should enter the 2500 income and payment to my self as director. There is 1 company share, value £1 , should I enter this in one of the boxes? Sorry to be a pain, I am struggling!
Expert:  bigduckontax replied 11 months ago.

Right the original book keeping entries for the income and expenditure would be:

Dr Cash/bank, Cr Sales 2500.

Dr Wages, Cr Cash/Bank.

Which leaves us with the problem from whence did the 1000 quid of fixed assets come? Was the one pound company share subscribed?

Customer: replied 11 months ago.
the 1000 covers my work library, laptop and misc "equipment" . Please advise where under the box headings below I should enter the 2500 and the £1 share value. I have copied/pasted from the online companies house abbreviated accounts format.
Abbreviated Balance SheetvalidateSave and exit
Date of balance sheetSelect required currency2015
£
Current: Called up share capital not paidFixed assets
Current: Intangible assetsCurrent: Tangible assetsCurrent: InvestmentsCurrent: Total fixed assetsCurrent assets
Current: StocksCurrent: DebtorsCurrent: InvestmentsCurrent: Cash at bank and in hand2500
Current: Total current assets2500
Current: Prepayments and accrued incomeCurrent: Creditors: amounts falling due within one yearCurrent: Net current assets (liabilities)2500
Current: Total assets less current liabilities2500
Current: Creditors: amounts falling due after more than one yearCurrent: Provisions for liabilitiesCurrent: Accruals and deferred incomeCurrent: Total net assets (liabilities)2500
Capital and reserves
Current: Called up share capital1
Called up share capital Edit note
Current: Share premium accountCurrent: Revaluation reserveCurrent: Other reservesCurrent: Profit and loss account2500
Current:
Shareholders' funds2501
Customer: replied 11 months ago.
the format has not pasted but hope having the headings helps to advise where I should paste the income and expenditure and the £1 share capital.
Customer: replied 11 months ago.
I should have said input the income and expenditure figure, not paste!
Expert:  bigduckontax replied 11 months ago.

You cannot just produce Fixed Assets like a rabbit out of a hat. From whence did the 1000 quid come to buy these assets?

Customer: replied 11 months ago.
I think on reflection for the sake of simple I will enter nil here. I bought the "assets" out of my own money . It would be helpful to know where in the abbreviated accounts format I enter the 2500 income and expenditure.
Expert:  bigduckontax replied 11 months ago.

Now we are getting somewhere. The book keeping entry for that would be:

Debit Director's Loan, cr Fixed Assets.

Now we have a balance sheet which looks like:

Fixed Assets 1000

Debtors 1

Total 1001

Creditors not repayable within one year Director's Loan 1000

Total 1

Financed by:

Share Capital 1

There we are all square. The 2500 income and expenditure would be in the P&L account, but a set of abbreviated accounts has no P&L. You should be all right now.

Customer: replied 11 months ago.
Thanks , I have finally produced a statement I can file. I have done it by taking your advice that a profit and loss account and entries are not relevant, by entering nil this time for the fixed assets and inputting £1 value of the single share under the apparent proper headings this time as in the data below. My sole fixed asset is really my labour and expertise. When I continued to enter the 1000 fixed asset the abbreviated accounts continued to produce the same error message as before. I am now minded to file the completed statement unless you advise or see a problem with my approach. many thanks for your patience. Gerry
Expert:  bigduckontax replied 11 months ago.

I should simply get shot of the whole exercise Gerry. This data is only used for statistical purposes only.

You did enter the 1 quid as a debtor and the 1000 as a long term creditor? If you did this the account would balance and furthermore be correct and should go through on the nod!

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Customer: replied 11 months ago.
I will do so . Thank you.
Expert:  bigduckontax replied 11 months ago.

Thank you for your support.

Expert:  bigduckontax replied 11 months ago.

Delighted to have been of assistance.

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