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Prior period error/mess

New client - previous accountant filed incorrect accounts with CH and "correct" accounts with HMRC

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So I've got a new client whose previous accountant file one set of accounts (call them the incorrect set) with companies house. 

They then made an amendment to the accounts and file the "correct set" of accounts with HMRC.

I'm now looking to prepare the accounts for this year and am not entirely sure how to handle this.

The accounts are FRS 105 and I use Taxfiler for accounts.

My guess is FS105 s8.14 to 8.17 apply for filing the accounts at Companies House. It doesn't specify but potentially the comparative year will need heading as "Restated" - I cant see that TaxFiler can do this. Am I going to have to download VT or something just for this one job? Could it be done on Companies House?

My real issue is with sending the accounts to HMRC. From their perspective the accounts would not be "restated". Do I need to have one set of accounts for HMRC and another for Companies House. That feels very wrong.

Your experienced advice is well appreciated

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03rd Jul 2019 13:39

If you're toey about it, you can always type them out. Or print out the accounts and type "Restated" in the appropriate place.

How long can that take with FRS 105 accounts ? Five minutes ?

You'll need to file by post, obviously.

Edited as I misread your post.

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03rd Jul 2019 14:02

What is the quantum of the difference between the net assets in the accounts filed at Companies House and in the final accounts - i.e. in terms of its materiality?

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03rd Jul 2019 14:28

Simple

File amended accounts at Cos House per the procedure below. Then both parties have the same figures and you proceed as usual

You must post the amended accounts to Companies House on paper.
The amended accounts must be for the same period as the original accounts that were submitted.
The word “Amended” must be clearly displayed on the front of the accounts to avoid them being rejected as duplicates.
The accounts must clearly state that they:
replace the original accounts
are now the statutory accounts
are prepared as they were at the date of the original accounts
The amended accounts must be signed by a company director.

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to bernard michael
10th Jul 2019 10:10

If you file amended accounts with Companies House at this stage presumably you are beyond the filing deadline so they will be late. in my experience this raises a late filing penalty.

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to Gillian Mill
10th Jul 2019 10:33

Gillian Mill wrote:

in my experience this raises a late filing penalty.

I think others' experiences may differ.
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By ABD
to Gillian Mill
10th Jul 2019 10:40

Filing amended accounts does not normally give rise to a penalty

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By djn24
to ABD
10th Jul 2019 10:54

ABD wrote:

Filing amended accounts does not normally give rise to a penalty

I believe they will generate a penalty if past the filing date.

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to djn24
10th Jul 2019 13:02

My experience is that Companies House will normally only seek a penalty if they are markedly different from the original. (i.e. it is clear to them that the original figures were just made up to meet the deadline).

Not something I have had to deal with in some years now, so they may have changed their view.

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03rd Jul 2019 14:55

Frankly I don’t think Companies House will notice or care that the comparatives in the balance sheet in the next accounts differ from the figures in the accounts filed with them last year.

So I would just file the filleted version of this year’s accounts, without further ado.

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03rd Jul 2019 14:55

Realistically CH will not pick up that the comparatives to this year's account don't agree to the accounts that were filed last year.
If we aren't looking at material amounts I'd probably just file this years accounts showing the comparatives as the corrected figures.

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03rd Jul 2019 15:15

Just make this year's accounts, including the comparatives, the correct figures and file them, likely nobody will even notice and if they do it's really not your problem.

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10th Jul 2019 11:42

I wouldn't file amended accounts for last year. Just deal with it all in this years.

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By Bobbo
10th Jul 2019 13:56

I think bernard michael's suggestion is the correct course of action. However I agree with Wanderer and Duggimon that CH are unlikely to notice given some of the absolute rubbish that they accept and is available for all to see (think acombi limited).

Make it clear to the client that an amended set wasn't sent to CH and see whether they care about doing that now or just sending correct accounts this year?

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to Bobbo
10th Jul 2019 19:25

Thank you for highlighting Acombi Limited - somehow it makes the pointless accounting we do worthwhile. Do have a read if you haven't done so already!

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