I have recently been asked to help a mutual aquaintance to take on the accounting for his Ltd company. This is a Not-for-Profit company with very little turnover and next to no reserves. They have been left in lurch and someone else posted CT600 for them, which I believe is not correct.
Previous year profit/(loss) = (£5900) (Oct16/Sep17) £0 (Oct 15/Sep16)
Balance Sheet reserve = (£3577) (Oct 16/Sep17) £1129 (Oct 15/ Sep 16)
The CT600 for YE Sep 18 showed Trading loss b/fwd (£3577)
I would have assumed it should be (£5900), am I missing something?
The Year to Sep 18, forthe first time has shown a net profit of £7400
Do the post 1/4/17 restrictions affect the amount of Trading Loss which can be used. I have read and understand HMRC guidance & advice. But I cannot see why the reserve figure would be used. I simply think my predecessor input wrong figure. It makes a difference in this year accounts as the company is in profit after it has generated a surplus.
I am helping