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Advice needed on Tax return/Companies house account difference

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    Advice needed on Tax return/Companies house account difference

    I have just submited my statutory accounts to companies house

    I am now just about to submit my tax return online and thought I might as well revisit my calculations and statutes when I discovered
    that Capital allowance changed in 2008 from 25% to 20% !. My Abbreviated accounts to Comp Hse shows Taxation based on 25% Capital allowance calculation hence wrong

    The impact

    Recalculation of the Capital allowance shows that my capital Allowance and Tax were understated by £43 and £10 respectively
    what are my best options
    Should I
    (1) submit my tax return without the correct changes, and if HMRC notice the error in my CA computation they will tell me to pay the extra tax. Advantage of this is that Abbreviated accounts to companies House and HMRC will still be in agreement and any tax discrepancies will be dealt with in
    the new financial year's books. They might also not notice the error and life goes on as usual

    (2) submit tax return with the minor changes. This will mean that Companies house and HMRC will slighly different set of accounts. might be a bit more trickier when submitting the the next set of returns to companies house as the opening/closing balances will be off ...


    which seems the best (or other....) option? A friend who is an accountant was saying option 1 will give the least headache

    css_jay99

    #2
    Go for option 2.

    HMRC computers would quickly spot you'd claimed the wrong percentage and would amend your tax return anyway.

    Next year's accounts, in the tax note, you'll have something along the lines of:

    Tax charge in current year X
    Prior year underprovision Y
    Total tax charge per accounts Z

    So next year, X will be what you pay, but Z will show as the tax expense in the accounts.

    Comment


      #3
      Amend the accounts you have submitted to CoHo. When filing make sure you mark them as "AMENDING" and you'll be fine.

      Comment


        #4
        Originally posted by Just1morethen View Post
        Amend the accounts you have submitted to CoHo. When filing make sure you mark them as "AMENDING" and you'll be fine.
        I have logged on to their website but cant see any option to send/resubmit my accounts

        Does this mean that I have to create a similar version to the submitted one and then send it by post to them in cardif?

        And tax notes as suggested by maslins


        cheers

        css_jay99
        Last edited by css_jay99; 3 November 2009, 15:55.

        Comment


          #5
          For such trivial amounts, I wouldn't be amending the statutory accounts at all, neither the full nor abbreviated. Just correct the tax return before submitting it and adjust the tax charge in next years accounts. For just £10 I wouldn't even bother showing it as a prior year item.

          Comment


            #6
            Originally posted by css_jay99 View Post
            I have logged on to their website but cant see any option to send/resubmit my accounts

            Does this mean that I have to create a similar version to the submitted one and then send it by post to them in cardif?

            And tax notes as suggested by maslins


            cheers

            css_jay99
            Yes, you are correct, amended accounts have to be sent by post, clearly marked "amended".

            Comment

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