Share this content

Just about to submit first return, is it correct?

Corporation Tax and End of Year Accounts

Didn't find your answer?

Hello everyone

I run a small micro ent ltd compnay and have prepared my first accounts (p&l and balance sheet)

I think this is correct but I would really appreciate some experts opinions before I submit. Below is a breakdown, As im filing micro ent, there are not as many options available to choose from on the HMRC portal:

INCOME 2020

Turnover 13,398
Income from coronavirus (COVID-19) business support grants 0
Cost of Materials ( 21 )
Staff Costs ( 8,019 )
Other charges ( 3,283 )
Tax on Profit ( 394 ) - corp tax calculation based on profit before tax - 2075
Profit or (Loss) for Period 1,681

 

Balance Sheet 2020

Current assets: 57
Creditors: amounts falling due within one year: ( 394 )
Net current assets (liabilities): ( 337 )
Total assets less current liabilities: ( 337 )
Total net assets (liabilities): ( 337 )
Capital and reserves: ( 337 )

Do the calculations look correct?

Replies (20)

Comments for this post are now closed.

avatar
By David Ex
18th May 2021 17:00

Independantknownotmuch wrote:

Do the calculations look correct?

No.

Thanks (1)
avatar
By Paul Crowley
18th May 2021 17:00

No
What happened to the profit?

Thanks (0)
Replying to Paul Crowley:
avatar
By Independantknownotmuch
18th May 2021 17:09

Paul Crowley wrote:

No
What happened to the profit?

Thanks

So, should the profit on the balance sheet be listed as an asset?

Thanks (0)
paddle steamer
By DJKL
18th May 2021 17:10

Try typing these up as a trial balance and it will not balance.

Cr Sales 13,398
Dr Cost of Mats 21
Dr wages 8019
Dr other 3,283
Dr Tax charge 394
Dr asset 57
Cr CT Liability 394

Where is the Cr re the share capital?
Why is above unbalanced?

Thanks (0)
Replying to DJKL:
avatar
By frankfx
18th May 2021 17:24

Suggest nil paid up capital

1681 is missing from reserves, the after tax profit

Which does feature on the OP list of numbers.

Trouble is I don't Use HMRC portal for these postings

Thanks (0)
Replying to frankfx:
avatar
By Paul Crowley
18th May 2021 17:51

Would not surprise me if the freeware permits unbalanced accounts.
I have seen a few odd submissions arising from DIY

Thanks (0)
Replying to frankfx:
avatar
By Independantknownotmuch
18th May 2021 17:55

frankfx wrote:

Suggest nil paid up capital

1681 is missing from reserves, the after tax profit

Which does feature on the OP list of numbers.

Trouble is I don't Use HMRC portal for these postings

Ive put £1 as my share capital as that is how much I issued to myself when I started the ltd company

Thanks (0)
Replying to Independantknownotmuch:
avatar
By Paul Crowley
18th May 2021 18:56

How did you pay for the £1 share?
Did you put money in to open the bank account?
Does the bank account exist?
Have you taken out of the company the exact wages figure?
Is the ERNIC included in your wages figure?

Thanks (0)
avatar
By JB101
18th May 2021 17:21

Where are the accountancy fees?

Thanks (5)
By ireallyshouldknowthisbut
18th May 2021 17:34

Not sure why you have a company for such small figures.

if you are looking to DIY, then a sole trader is probably a safer bet.

Thanks (0)
Replying to ireallyshouldknowthisbut:
avatar
By Paul Crowley
18th May 2021 17:55

+1
No balance sheet needed
You can put anything you like on the tax return.

Just be mindful that HMRC enquiries tend to be aimed at submissions not submitted by registered tax agents through tax agent portal.

Thanks (0)
avatar
By Independantknownotmuch
18th May 2021 19:03

This is my last attempt. Please let me know if it is correct:

Turnover 13,399.
Cost of raw materials and consumables(21.00)
Staff costs(8,236)
Other charges(3,081)
Tax(407)
Profit or (loss)1,654

Dividends paid £2000

Balance sheet

Share capital £1 (specified when set up company as sole director)
Current assets 61
Creditors: amounts falling due within one year (407)
Net current assets / (liabilities) (346)
Total assets less current liabilities (346)
Net assets (346)
Capital and reserves (346)

Thanks (0)
Replying to Independantknownotmuch:
avatar
By David Ex
18th May 2021 19:42

Independantknownotmuch wrote:

Profit or (loss)1,654

Dividends paid £2000

I don’t know if you are serious or whether you are trolling. You’ve paid an illegal dividend.

This site is not provided to teach accounting or to provide free services to the clueless.

Get an accountant to dig you out of the mess you’ve got yourself in.

Thanks (4)
Replying to David Ex:
RLI
By lionofludesch
18th May 2021 22:33

David Ex wrote:

Independantknownotmuch wrote:

Profit or (loss)1,654

Dividends paid £2000

I don’t know if you are serious or whether you are trolling. You’ve paid an illegal dividend.

To be fair, it's not illegal though it may have beem unlawful.

Who knows how much profit had been made at the time the dividend was paid?

Thanks (0)
Replying to lionofludesch:
avatar
By David Ex
18th May 2021 22:44

lionofludesch wrote:

David Ex wrote:

Independantknownotmuch wrote:

Profit or (loss)1,654

Dividends paid £2000

I don’t know if you are serious or whether you are trolling. You’ve paid an illegal dividend.

To be fair, it's not illegal though it may have beem unlawful.

Who knows how much profit had been made at the time the dividend was paid?

I don’t care, to be honest.

Thanks (0)
Replying to Independantknownotmuch:
avatar
By Paul Crowley
19th May 2021 02:15

Illegal dividend

Thanks (0)
avatar
By Calculatorboy
18th May 2021 22:41
Thanks (0)
avatar
By SXGuy
19th May 2021 06:46

What a nice person. I really love spending free time helping people like you. Not.

Go bother someone else. Idiot.

Thanks (1)
blue sheep
By Nigel Henshaw
19th May 2021 08:41

baffles me why so many members get drawn into replying to a post like this

Thanks (2)
Tallula Brogan
By Tallula Brogan
19th May 2021 09:37

Hi everyone, the moderation team have decided to close any further comments on this thread. Thank you.

Thanks (0)
Share this content