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bigduckontax, Accountant
Category: Tax
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Need to do company accounts/tax return for company that has

Customer Question

Hi...need to do company accounts/tax return for company that has been almost inactive..i.e. no income/£334 in outgoings. i presume it should be simple but find the micro-entity form for Webfiling complicated. Could you offer any guidance?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

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

Firstly you must prepare a full set of accounts under the Companies Acts, ie a Profit and Loss Account (P&L) and a Balance Sheet (BS). Ensure that the BS actually balances and that where data is common to both the BDS and the P&L the figures actually are identical. You will find that in all probability the accounts will have a lot of zeros in their make up.

Now enter the Webfiling and very carefully enter the data you have prepared inserting zeros where appropriate. The system will prompt you as to any discrepancies and or errors as you work through the micro entity inputs. Do not forget to select for the abbreviated accounts to be extracted for the Companies House (CH) return automatically as this will be another chore you will not have to complete. You will probably find that most of the 'Notes' available will not need to be used.

That is how I always proceed with that exercise. I note with some grim amusement that in the old days of paper returns one was pushed if it took more than five minutes to complete. Now it is likely to take three quarters of an hour!

I do hope that I have been able to show you a way forward in this matter. Please follow up on this thread if you are still having difficulties.

Customer: replied 1 year ago.
Thanks..but that hasn't really helped. I was after guidance for what the actual terms meant on the form and wondered if there was a guide available that explained what had to be put in each field. Also, you say abbreviated accounts still need to be filed? I thought that was the reason for the micro entity submission?, as - in my case _ it would nearly all be zeros??
Expert:  bigduckontax replied 1 year ago.

The micro accounts will file automatically with Companies House providing you elect for that option. The election is made almost immediately on entering the package.

As I said, before you can complete this exercise you must prepare BS and P&L under the Companies Acts. In this case I suspect that most of the fields will be zeros. Once you have a Companies Act format the data wilkl correspend with the on line return format.

Customer: replied 1 year ago.
Thanks..Any idea where I could find a suitable template for both the balance sheet and p&l?
Expert:  bigduckontax replied 1 year ago.

If you can let me have an email address I can send you an example.

Customer: replied 1 year ago.
Email address is***@******.*** . Thanks
Expert:  bigduckontax replied 1 year ago.

Sent you a test email.

Expert:  bigduckontax replied 1 year ago.

Example sent to you.

Customer: replied 1 year ago.
Thanks for email. Would it be ok to call you tomorrow? I'm still unclear about a few things.
Expert:  bigduckontax replied 1 year ago.

Post to clear my question list.

Customer: replied 1 year ago.
Is that an additional £50 or total fee including initial question?
Expert:  bigduckontax replied 1 year ago.

Additional for a telephone call, that's how Just Answer works.

There is another problem with your scenario. As you are both taking different sums of money as dividends HMRC may will regard these payments as wages, invoking ir35. Wages should have been paid under PAYE arrangements. All in all the company has got itself into a frightful mess. Remember dividends do not count against Corporation Tax (CT) in the computation, whilst wages do.

I am so sorry to have to rain on your parade.

Customer: replied 1 year ago.
I think you sent your last response to be by mistake!
I'm still not clear about how to enter the info onto the profit and loss/balance sheets. Would you be able to show me how to enter the figures on the forms if I gave you them? As I said, there only been one transaction all year.
Expert:  bigduckontax replied 1 year ago.

What was the transaction?

Customer: replied 1 year ago.
Sorry..2 transactions. £300 accountancy fee and £34.80 for a registered address.
Expert:  bigduckontax replied 1 year ago.

So Debit Fees paid 334-80 Credit Bank/Cash 334-80.

This will create a P&L A/c with a Balance Brought Forward less 334-80 and a reduced Balance Carried Forward. The Revised BS will show 334-80 less in the P&L. You can then go into the program and file the new P&L, Balance Sheet and there will be no Corporation Tax payable.