Hi all
I'm Director of a Limited Company, it made approx. £8k loss in the last 2013/14 financial year so we didn't pay any corporation tax. This 2014/15 year it's made a very small profit of approx. £3k. As I understand it, I can carry the £8k loss (I believe called a trading loss?) from 2013/14 forward and cancel out the £3k profit so there's no corporation tax to pay this year? Is that right?
If so, my main question is how do I submit it? I'm trying to use the Return Service to submit full micro-entity accounts to Companies House and I can't see where to put this loss carried forward on the Profit and Loss page. There's boxes for Turnover, Cost of Sales, Admin. expenses etc. but I can't figure out where to put a loss coming forward, and without doing so it looks like a £3k profit eligible for corporation tax.
Would welcome some help! It's the first time I've tried to submit the accounts myself, going to close the company soon as I don't put time into it anymore, just trying to get this year submitted first.
Replies (17)
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No need to enter losses brought forward at all.
Cumulative balance only.
In fact, if you're having the company struck off, no need to submit any figures at all to Companies House.
Thanks for replying. So could you please tell me how do I calculate and where would I enter this "cumulative balance"? It doesn't seem as though I can enter it in Turnover, Cost of sales, Distribution costs, Admin. expenses, Other operating income or Interest and those are the only places I can enter figures on the P&L page.
I'm a bit surprised you don't think I'd need to submit any figures? The financial year I'm doing is Oct 14-Sep 15 so has to be done by Thursday (end of June), then I have a couple of transactions that have been done since then. Wouldn't I need to submit accounts for 14/15 and 15/whenever I close in 16?
Thanks again!
No, once you apply for strike off, your Companies House filing obligations end.
You don't need to file a profit and loss account for a micro company.
Sure you're filing with Companies House and not HMRC?
It does all seem a bit backwards, which is why it's been troubling me so much!
It's because you're assuming that you have to wait until ten minutes before the deadline arrives before you can start your accounts.
Your profit for the year is what it is, and has nothing to do with losses from last year.
But the advice you've had already is sound - apply for strike off. If you rack up fines for the accounts these will disappear with the company. Just ensure you ring HMRC and tell them you have no taxable profits so that they don't object to the strike off.
Trading is buying and selling, not receiving payments due and settling debts.
You must close the company bank account before the company is struck off as the account will be frozen on strike off and any money in it paid to the Crown as bona vacantia. You must pay off any other company debts before you pay yourself.
OFFS. Forget about the accounts. After the company is struck off you can't file anything with HMRC or anybody else as the company no longer exists. It is dead. Finito. An ex-company. It is no more. A company that does not exist cannot owe fines, file returns, buy groceries or contemplate the state of its own non-existence. Once the company strike off is complete you just walk away into the sunset. Clean.
OK - well you need to calculate your tax liabilities for (presumably) the year to September 2015 and the five months to Feb 2016. You seem to have done this and found that the answer in nothing.
You do not have to prepare proper Companies House accounts for these. If you work through the CT600 forms, you'll find that, near the end, there's a box to tick along the lines of "I'm not attaching accounts because the company is in liquidation".
Given that there's nothing to pay, you could probably get away with just sending a letter in saying there's nothing to pay and you intend to strike off the company but - obviously - what HMRC are prepared to accept is entirely up to them.
If you're toey about Companies House penalties, shorten the Sept 2015 accounting period by a day.
All your CH filing obligations cease when you apply for strike off.
Empty the bank account and do it.
When did you last trade ? ie Sell stuff/Do work.