A new client has come to me after trying to DIY their first year and filed their own accounts etc.
Less than £20k profits in company. They didn't register a PAYE scheme last year unfortunately. Am suggesting they do so now.
CT period is to 31/01/2020. CT600 not filed.
Companies House accounts were filed to 31/10/2019 and these need to be amended.
Was thinking to request HMRC to amend first CT period to 31/10/2019 in order to align periods. It would just mean CT payment overdue by a couple of months.
Is it an alternative to extend Companies House reference period to 31/01/2020? There seems to be possibility on CH to extend the prior period to 31/01/2020. Would this mean that I could then file CH accounts online (and that they would not be amended and filed on paper)?
Other suggestions welcome too.
Thanks in advance!
Replies (24)
Please login or register to join the discussion.
How major are the amendments? Could you shorten YE Oct 20 to be PE Jan 20, include the 2019 adjustments in those and file online. Then consolidate the 2 sets of accounts for the Jan20 CT600.
How major are the amendments? Could you shorten YE Oct 20 to be PE Jan 20, include the 2019 adjustments in those and file online. Then consolidate the 2 sets of accounts for the Jan20 CT600.
You can't do that if the accounts have already been filed at Co House.
Your CT600 must be made up to Oct 2019.*
*Edited - apologies.
It doesn't sound right that the HMRC reporting period is different from the period for which it prepares accounts. How has that come to pass?
That can’t be right. They must also have told HMRC that they were going to move the year end to January, then decided not to. Is that the case?
I was wondering if HMRC automatically did that - I haven't tried it yet myself. Has that worked for you?
They don't do it. You do it on the CT600 by telling them what the period of the return is.
Accounting reference date starts a new CT period. Them's the rules - or one of them.
You don't need to request this. It's mandatory.
CT periods will match the fuled accounts - subject to no CT period exceeding 12 months.
Does that make your decision for you ?
"They didn't register a PAYE scheme last year unfortunately"
This quote, along with your user name, makes me wonder if they will really get the best possible outcome, given that they have decided to consult someone offering professional services.
Apologies if my fears are unfounded.
He did say it was diy job for the first year, so he wasn’t in a position to advise a PAYE scheme
I would actually welcome if you have any thoughts/comments. This client has come to me this week and, given your comment, I am now wondering and doubting if there is something I can do for last year and the lack of a PAYE scheme.
The question is an ethical one.
Did the director draw a salary which went unreported ?
Or did he just draw money out and then realise he'd've had a better deal if he'd drawn a salary and now seeks to ameliorate that position by pretending it was a salary all along ?
If the reason you are amending the accounts is to put through a salary, then don’t. I had understood that the PAYE scheme was being set up prospectively from your post, so do that.
If the client wanted the benefit of your advice then they would have engaged you earlier.