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Donations disclosure

My client who is a small limited company made donations to charities in the year amounting to ~£700. How detailed disclosure in the notes to accounts is required for this? IRIS software suggested adding a note as part of Director's Report.
Kristina

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Out of interest
Companies Act rules..OK!

Out of interest D have you just been preparing Abb accounts for small companies? If so did the Revenue not complain?

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By Anonymous
01st Mar 2007 20:57

No
I let the Revenue have a full copy of the accounts but don't include the non-existent Director's Report.

After all the accounts and the notes to the accounts are what matters - from what I remember of 40 years ago the Director's Report was a fairly meaningless piece of work that added no useful information to the accounts of a micro company.

And I have to admit that whilst I said I dealt with it through the Capital & Reserve Account, on looking back over last year's I actually still put it in the P & L account - I think it got left behind by accident when dividends were moved from the P&L to General Reserve.

No complaints, as yet. I suspect HMRC have better things to do than worry about the minutiae of pretty pointless (for microcompanies) CH regs - as long as they're told about the charitable donations three times (P&L a/c, CT computation and CTR) I reckon they don't feel the need for a fourth rehersal.

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28th Feb 2007 13:04

You said it, D !
The elective resolution is to dispense with presenting the statements at an AGM, which obviously follows from dispensing with AGMs. It is not a dispensation from including a directors report with the financial statements prepared for the members.

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Do the directors know?
D I'm sure you'll tell me if I have this wrong but it sounds like you are making the decision over what to disclose whereas it's the directors' responsibility to prepare accounts that comply with company law and accounting regulation, do you give them the choice?

I agree that if you considered preparing a directors' report from memory of 40 years ago it would be pretty naff but there have been a few changes over the years and in particular over the past few months. Whilst you look them up you may come across accounting changes as well, for example you can use round pounds these days (yes you can ignore shillings).

As far as HMRC are concered, by not submitting accounts that comply with basic regulation you are putting your clients' affairs at risk. At its simplist this will be a Revenue officer asking his/her colleague why your accounts look different to another on his/her desk.

Honestly, it's not that difficult to prepare one extra sheet, I really do suggest you give it a go.

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By Anonymous
28th Feb 2007 11:52

By elective resolutions
According to "The Company Secretary's Handbook" by Helen Ashton the 1989 Co's Act allows private co.s to, inter alia,:-

dispense with the obligation to hold AGMs
dispense with the requirement to present a director's report and accounts to shareholders at AGMs

A signed copy of the elective resolution must be filed at Company's house within 15 days of being passed.

(oops! but I'm not likely to complain about my forgetting that bit, am I?)

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D (what?)
This sort of thing always makes me think I've missed something.....dread asking but how do you dispense with the director's report?

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By Anonymous
27th Feb 2007 13:55

How small is small
Of course if it's a really small "one man" company it will have elected to dispense with a Director's report.

I just show it as a seperate item in the General Reserve Account - no complaints from the Revenue which is all that counts at this level.

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Iris are (is?) right
Hi Kristina
The directors' report must state each purpose for which money has been given and the amount given for each purpose. Note that the purpose must have been exclusively charitable. Also contributions to persons ordinarily resident outside the UK are exempt from disclosure.

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02nd Mar 2007 16:55

So 'D' what is the point of obeying the law?
Presumably you also decide the appropriate speed limit when you are driving!

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