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Share Capital - Error in Filing Accounts

My assistant has done an error while filing the accounts for a client.

When filing  the accounts the capital/shares has been filed as 21000 shares at £1 each. Actually the share capital should be only £100 - ie 100 shares @ £1 each. £20,900 was a loan from the director to the company and not a share capital invested during the year.

The accounts has been filed online with the companies house and also being sent to the Inland Revenue.  Would you please advise how to correct this error?

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11th Feb 2011 12:25

Amend the accounts

This is a fundamental mistake that would make it reasonable for the directors now to consider that the original accounts did not comply with the Companies Act regulations.  I wonder why the director did not spot the mistake when he signed the balance sheet showing share capital of £21,000 (you did get the director to sign the accounts didn't you?) or indeed, why you entrusted this to an assistant.  However, the solution is to file amended accounts (after signature by a director) at Companies House.

The mistake does not affect the tax position.  You do not need to file an amended tax return and since the accounts are only supporting documents to the tax return, there is no need to send the amended accounts to the Revenue.  It would probably only confuse them if you did.

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11th Feb 2011 12:59

Thanks Euan

Much appreciated. I learnt the lesson. I was out of the country and the accounts had to be filed to avoid the penalty.

I will file the amended Accounts to the companies house.

Thanks for your help

 

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12th Feb 2011 20:44

Be careful with other errors

Some errors cannot be changed. If you allot too many shares/wrong nominal value at companies house, assuming companies house accepts the changes, then this cannot be changed, . You have to go through the share reduction system etc. The same applies to changing the year end; you can change the year end again, but you may use up the one opportunity in 5 years to extend the year end. There are probably other changes which cannot be undone which I do not know about.

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