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Small company accounts

Small company accounts

Be gentle with me, as I am in a purely audit environment with 1 active private client.

This client formed a limited company on 11 February 2010. I changed the accounting reference date to 31 03.

The client has had no income to date, but has been incurring a lot of expenses as he searches for the right location to take up a franchise. The company is VAT registered.

I can prepare company accounts for him to 31 03 11. (These are due by 11 November 2011.)

My question is, what do I need to invest in?

VT Software will produce iXBRL accounts, and also the disclosures should be ok, but what about HMRC? Taxcalc is very expensive, considering I only have one client, and do not have the inclination at present to get more clients. Can I use the HMRC software, or do I just ask them to accept a nil return for the 13.5 months period to 31 03 11? If they accept a nil return, can this be manual?

Thanks in anticipation

SA

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28th Oct 2011 11:33

Just use HMRC Software

I would use the HMRC software

however if you can't face using it -  Ftax do up to 5 CT Returns for £50+VAT

or Taxcalc do 6 Personal Tax returns + 1 CT Return for £80+VAT

 

Also if you only have one client - I wouldn't invest VT - I would personally use the free HMRC + Companies House joint filing facility for the accounts too.

Thanks (1)
28th Oct 2011 12:04

If you are in an audit enviroment I assume you are either an ACA or in training to be one. If so unless you have a practising certificate and full insurance to practice you are prevented from acting.

So the answer I imagine is dont do what sounds like a favour to someone.

Edited to add - sounds like the business owner has had poor advice in the first place if running up substantial expenses within a limited company. That's a pretty silly thing to do assuming they have other income.

 

Thanks (1)
28th Oct 2011 12:15

I agree

Just remember that the company is not subject to corporation tax until it starts trading, which in this case, would appear to be when it started incurring expenses for business purposes - see s.9(2) CTA 2009.  No CT return is required for the period from incorporation on 11.02.10 until it started trading.  You cannot file a CT return for a period of longer than 12 months.  If the company started trading before 31.03.10, you will need to file two CT returns - one for the first 12 months of trading and the other for the remaining period up to 31.03.11.

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01st Nov 2011 15:07

Why did you change the year end?

I would have thought a change to end of July would have been a better bet.

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