Hello AccountingWeb users,
What a pickle, it all is. Well my mind was sharper 30 years ago, but even bus timetables now get me flicked. Could I trouble you all for some advice? I started a limited company to make handmade greeting cards, I had a loss last year but a profit this year! So I will have corporation tax payment , but I was wondering how do I carry the losses from previous year forwarded? And what process under double entry book keeping do I enter.
Thank you for taking time to read.
Best wishes,
Naomi
Replies (10)
Please login or register to join the discussion.
It’s nothing to do with book-keeping, it’s about the company’s corporation tax return.
On last year’s return you will have had a tax adjusted loss carried forward. You did, didn’t you? On this year’s return you will have the same loss brought forward, which you then deduct from this year’s profit in the calculation of how much tax the company will pay.
Last year your balance sheet would have shown profit and loss reserve of -£x. If you’ve made a profit this year of £y your reserve will now be £y-x.
That is the most basic of explanations and it could be more complicated than that. You would be well advised to appoint an accountant to handle your accounts and tax matters.
Hello John,
Thank you for your reply. Yes indeed I did have such figure on last years return, sorry my question was more about the companies house balance sheet, and how to display last years loss on there.
Last year's loss won't be on the Balance Sheet but it will be on the Profit and Loss account, in the comparatives column. You don't have to file this at Companies House. of course, but HMRC would like a look.
I would respectfully suggest that the very basic nature of your enquiry indicates that you're floundering here and it would be wise to visit an accountant before things turn titsup bigstyle
naomiwilliams34532-AT-gmail.com wrote:
I started a limited company to make handmade greeting cards,
Roses are red
Violets are blue
Tax and accounting
You don't have a clueAnd which cretin told you to start a company?
What's the betting on MDTP ??