Called Up Share Capital

Called Up Share Capital

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The new (2013) Companies House online abbreviated accounts filing will not allow a blank or £0 in the Called Up Share Capital box. I was not able to persuade them that this is a valid accounting position, I always thought it was, maybe it isn't.

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By johngroganjga
24th Dec 2013 11:47

What is the company's issued share capital?  It must have been incorporated wit at least one share.

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Locutus of Borg
By Locutus
24th Dec 2013 11:53

You must have shareholders in a limited company
If a company doesn't have any shareholders then who owns it ... and who would appoint the directors to run it? Unless it was limited by guarantee then there must have been at least one shareholder when it was formed.

It is quite common for a company to have called up share capital that has not been paid, as in the case of a dormant company. In which case the balance sheet entries would be debit debtors and credit share capital.

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By Gone Sailing
24th Dec 2013 11:56

"Calling" Share Capital

Isn't "Calling" asking for the money?

So can't you have Issued but not Called?

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Replying to atleastisoundknowledgable...:
Locutus of Borg
By Locutus
24th Dec 2013 12:07

Issued share capital

Gone Sailing wrote:

Isn't "Calling" asking for the money?

So can't you have Issued but not Called?

I probably should have said "issued shared capital" instead of "called up share capital" in my previous posting. Download a copy of the incorporation documents from Companies House and it will tell you how many shares were issued on incorporation.

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By johngroganjga
24th Dec 2013 11:58

Who has prepared the company's full accounts and what do they say under share capital both in the balance sheet and the notes?

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By Gone Sailing
24th Dec 2013 12:31

and so to clarify ......

The shares are issued, but not called and therefore not paid.

Therefore Called Up = £0.

The new (2013) Companies House online abbreviated accounts filing will not allow a blank or £0 in the Called Up Share Capital box on the Balance Sheet.

The old CH pdf system did allow Called Up = £0, and so does the HMRC online filing system.

 

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By johngroganjga
24th Dec 2013 12:37

I think you are over-elaborating.  Just credit share capital and debit debtors. 

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By Marion Hayes
24th Dec 2013 13:24

Confused!!

If this is a company limited by shares there has to be at least one share in issue, registered as belonging to an individual. The money for that may not have been paid but you have to have 1.

If you put £1 into the called up but not paid will it then let you have zero in the called up box?

If this is a company limited by guarantee there are no shares and HMRC has an issue with the online filing but I didn't think that applied to Companies House too.

 

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By Gone Sailing
24th Dec 2013 13:46

OK so one last time ..........

The shares ARE Issued, but NOT Called (ie. asking for the money).

I believe this is a valid legal position.

I won't be raising a debtor because:

a) they are not Called, so no debtor

b) S455

 

'Not Called' is not the same as 'Called but not Paid'.

 

I would like to keep the simple and unelaborate position of putting a £0 in the Called Up Share Capital box like I have done for the past 3 Years (but now CH has changed the system and won't allow that).

So, Happy Christmas to all and to all a goodnight.

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By girlofwight
24th Dec 2013 14:45

BIt late to this

Bit late to this, sorry, I was reading it in the car wash earlier, but CBA to reply on iphone.

Assuming they are subscriber shares they must inter alia be called?

I think the correct position would be to show share capital equal to nominal subscribed amount, and then show unpaid share capital debtor.

One point to note is do not assume Companies House are always correct.  I had a spat with them a few years ago over the ability to extend APs - I had one interpretation of the Companies Act, them another.  They referred it to counsel at DTI, who agreed with me.

 

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Replying to girlofwight:
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By chatman
17th Oct 2016 19:29

girlofwight wrote:
Assuming they are subscriber shares they must inter alia be called

Is this a statement or a question girlofwight? If it is a statement, can you give us the statutory reference?

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Replying to chatman:
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By girlofwight
18th Oct 2016 20:29

No, I don't have a statutory reference.

But it is a process issue. Peoples debate / questions on called v issued v called & unpaid is all irrelevant.

For a company limited by shares then at least one person subscribes for at least one share on incorporation.

Hence issued shares will always be at least one share, in practical terms.

Whether that one issued share has been paid or not is a different matter, and determines where the double entry is.

Equally whether further shares have been issued is another matter, as is whether they are called and paid or called and unpaid.

The only way the share capital could be zero, IMV, is if there had been a buyback or cancellation. At that stage with no shareholders the company has to cease to exist, presumably becoming bona vacanta.

But in the context of a typical small company, this is grossly overthinking and over complicating.

chatman wrote:

girlofwight wrote: Assuming they are subscriber shares they must inter alia be called

Is this a statement or a question girlofwight? If it is a statement, can you give us the statutory reference?

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By thehitch
08th Jan 2014 20:24

Same problem

I have the same problem as Gone Sailing but with an added twist...

My computer crashed whilst completing the CT600 - I made the return to Companies House but failed to get the section that finalised the return to HMRC. 

When I downloaded again and when through the new CT600 the Called Up Share Capital box (AC70) had become a required field whereas the first time I completed the form it was not. 

Companies House accepted the version they received and now I can't make CT600 accept a zero figure for some reason. 

NB we are limited by shares but we agreed not to pay the company in terms of our time and waive the £100 - so no financial debt to note on the balance sheet. But can't get past this page as (now) the balance sheet doesn't tally. Grrr.

HMRC technical team have not had a clue.... Any recommendations gratefully appreciated!

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By Matt010
22nd Sep 2014 07:04

Did this get resolved?
thehitch, I have similar situation to you where our issued shares are paid up but in return for efforts as opposed to cash.

The shares have nominal value of £1, but since the cash was never paid if I enter the total nominal value in called up share capital it will not balance. It does allow me to enter 0 though, so is this correct?
Can my called up share capital be 0 when I have issued shares with a nominal value that are fully paid up (in kind)?
Thanks

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By Gareth Lowe
01st Dec 2014 19:41

same problem

I also wish to put zero in box(AC70). Called up shared capital is shares issued to investors is it not? In my case the company made a loss this year therefore nothing could be issued to investors. I cant even put a 1 in there because it throws my balance sheet out. Cant get past this section without resolving this. Any help anywhere ??? 

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