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Sam
Sam, Accountant
Category: Tax
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I need advice on filing micro-entity accounts.

Customer Question

I need advice on filing micro-entity accounts.
Submitted: 5 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 5 months ago.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Expert:  taxadvisor.uk replied 5 months ago.

Thank you for your question..

Please expand on your question..

Many thanks

Customer: replied 5 months ago.
The accounts filed for the previous company tax year seem incorrect. I need advice on what to do and how to file the ones now. We never issued 100323 gbp in shares. In fact, the shares issued and paid for in 2014 were for 27998 gbp. I believe the 2016 accounts should look more like the image attachment (I have also included the 2015 filing there for reference).
Customer: replied 5 months ago.
The story of the company is that we received 27997 in investment in 2014 and we have been receiving money from app sales since then, paying the two co-founders/directors/developers salaries for each month. However, we used the services of an accounting company, which we believe were just incompetent and this was filed for year end Nov 2015. Now we would like to file the accounts for year end Nov 2016 and I am finding it difficult to prepare those.
Customer: replied 5 months ago.
The money from the investment was in our bank account and was spent prior to 2015. Everyone has paid for the shares.. And I've included the amount in the bank as at end of Nov 2016, as well as the profit we've made in that year. We have no other assets.
Customer: replied 5 months ago.
Do we have to correct the previous year filing? I don't see how we had any "debtors" and how they reached this 100+k amount, except by an error. Also, in the current filing, should we put the shares anywhere? How do we balance it if in called up shares capital?
Customer: replied 5 months ago.
I have the feeling these should not appear anywhere as the money has been spent in previous years and we should just have the cash amounts with no assets at all, but I am not quite sure. Please let me know what you can make out of this situation. Thanks.
Customer: replied 5 months ago.
In fact, they even got the initial statement of capital wrong, I believe..attaching that too. The aggregated nominal value there is wrong..
Expert:  taxadvisor.uk replied 5 months ago.

Thank you for your reply.

You have called up share capital fully paid as at end Nov 2015. Was the cash for these shares actually paid up before year end or was it outstanding (debtor at the year end.

Many thanks

Customer: replied 5 months ago.
The cash for these shares was paid on the 05 Dec 2014 (I am just looking at our bank account). And the company tax year is 01 Dec 2014 - 30 Nov 2015. So, inside that year.
Expert:  taxadvisor.uk replied 5 months ago.

What was the bank balance at 30 Nov 2015?

Did you have any debtors at year end..if so, what did they relate to?

Many thanks

Expert:  taxadvisor.uk replied 5 months ago.

Did the company sell some shares at a premium as your schedule suggests allocation of shares at different unit price?

Customer: replied 5 months ago.
The bank balance is correct - 31 pounds. We had no debtors then. Basically, we received the funds, and then we paid fees of 17k for a startup accelerator program, and got the rest as income. So it should have been reported as expenses, I believe.
Customer: replied 5 months ago.
We have not sold any shares after the initial investment. We made the company, then received the investment and allocated the shares to the investors. There are 8 investors and they paid different amounts, so I guess that's why (even though I still don't get it completely), there are different types of shares.
Expert:  taxadvisor.uk replied 5 months ago.

Can you send me detailed accounts for 2015 to review?

Many thanks

Customer: replied 5 months ago.
Unfortunately, I just started looking into this now. We paid an accountancy (PKF Cooper Parry) to do all this for us. And we believed they are capable of doing it ok.. the accounts are attached.
Customer: replied 5 months ago.
Also, I don't know where these 1000 gbp liabilities, or the total assets come from. As far as I am aware, we never had company assets and never owed anything to anyone. But it was a couple of years ago and I might be missing something..
Customer: replied 5 months ago.
The assets are real - we did apparently buy computer hardware that year. Apologies for that.
Expert:  taxadvisor.uk replied 5 months ago.

There is something findamentally wrong with the accounts as presented.

The company received over £100k for share issue and it is not reflected in either expenses or cash in hand.

I am happy to reconstruct the accounts after having a better understanding of figures as an additional service.

Please let me know if this is something you would consider and I will send an offer.

Many thanks

Customer: replied 5 months ago.
We are interested of course. Could you also tell me, since these have already been filed with Companies House, how do we fix the accounts there? Also, please quote me on both fixing the 2015 and preparing the 2016 accounts - I have all the info you might need - it's actually in the attachment I posted earlier - just cash in the bank and the profit statement. I don't think we need to file or prepare detailed accounts..or I might be wrong?
Expert:  taxadvisor.uk replied 5 months ago.

Thank you for your reply.

You should submit amended accounts to Companies House if the originals are incorrect.

We will consider each year separately. If the offer is acceptable, I will provide contact details for ease of communication.

Many thanks

Customer: replied 5 months ago.
I would accept the offer, but we need to know if it would be possible to get the current year accounts done quickly, or at least to get a draft version asap because we need to show them to our main investor. Thanks.
Expert:  taxadvisor.uk replied 5 months ago.

Sorry about misunderstanding, if any. The offer is to review and reconstruct 2015 accounts for filing of amended accounts.

Once 2015 is done, I will make an offer for 2016 accounts. I could prepare darft accounts for consideration by end of this month.

Mnay thanks