Corporation Tax Form CT600

**prudent consulting limited** · 16 February 2011, 14:18

As a limited company you are required to prepare accounts that conforms with the appropriate standards. Remember your accounting profit may be different from the profit on which your tax is assessed. With regard to the ct600 as far as I know you only declare your turn over and your profit per accounts and also your adjusted profit for tax purpose. With regard to your equipment purchase it may qualify for annual investment allowance

**Clare@InTouch** · 16 February 2011, 14:28

Your expenses will all be shown on your accounts, no need to add them to the return itself. You should also have a CT computation that will reconcile the profit per the accounts to the profit declared on the CT600.

Assuming it's all simple and straightforward:

Box 1 - turnover
Box 3 - adjusted profit (after adding back disallowed items and deducting capital allowances)
Box 6 - any bank interest
Box 21 & 37 - taxable profits (sum of 3 and 6 above)
Box 39 - any associated companies, or 0
Box 43 to 63 - actual tax calculation
Box 70, 86, 92 - value of tax payable
Box 172 - value of AIA claimed, if any

This takes no account of losses brought forward or carried back, directors' loan accounts, repayments or other complications. The £400 I would have added as an expense in the accounts, so it depends on whether you've done the same or treated it as an asset.

In all honesty if you're not sure, see an accountant. At least then you can ask them to talk you through what they've done and you'll be better placed to do it yourself next year.

**xoggoth** · 16 February 2011, 14:48

Not actually used it as I retired before it came in but doesn't the annual allowance effectively mean a capital cost below a certain value is deducted like any other? Ie no first year/wdo guff.

Ah yes. Annual investment allowance - put amount in box 172. What CIT said.

There's some box by box notes on short form here: Much as Clare said but a bit more detail.

http://www.xoggoth.org/temp/book1.xls

**happydays1** · 16 February 2011, 14:58

Thanks for your responses very helpful, they have cleared up a few concerns!

I shall put the £400 IT Equipment as an expense! so there wont be any depreciation issues.

In terms of obtaining the format of accounts (preferably in Excel), that hmrc would be happy with, would you know where to get hold of these.

I understand they require the following:

P&L Statement
Cash Flow Statement

Anything else as this company has basic accounts?

Much appreciated

**Clare@InTouch** · 16 February 2011, 15:35

A limited company should prepare accounts that include:

A Directors' Report
Profit & Loss
Balance Sheet
Notes
Detailed Profit & Loss account

These should be in a statutory format and include any necessary disclosures. At present you can post the accounts and the CT600 to HMRC, but it will need to be iXbrl compliant from 01/04.

You also need to file accounts with Companies House. This can be done by post or online, but if they do not contain the necessary Companies Act statements they will be rejected and you'll have to resubmit.

Life of a Company - Part 1 Annual Requirements - GP2

**prudent consulting limited** · 16 February 2011, 15:48

Originally posted by happydays1 View Post

Thanks for your responses very helpful, they have cleared up a few concerns!

I shall put the £400 IT Equipment as an expense! so there wont be any depreciation issues.

In terms of obtaining the format of accounts (preferably in Excel), that hmrc would be happy with, would you know where to get hold of these.

I understand they require the following:

P&L Statement
Cash Flow Statement

Anything else as this company has basic accounts?

Much appreciated

As this is your first year of trading there is the likelihood that you may need to complete two ct600 depending on when your company started and your accounting reference date.
Looking at your questions I will advice you to look for an accountant. Look for a freelance accountant if you are very much concern about the fees.
Really you don't need a cashflow but a balance sheet. Have you thought about the notes to the accounts?

**Clare@InTouch** · 16 February 2011, 15:57

Just reading through your first post again - if you do decide to talk to an accountant you may wish to bring up the £7,000 training costs incurred to ensure they are an allowable cost. Or have a search through the forum as there was a thread on this very recently.

**happydays1** · 17 February 2011, 20:52

For next year I shall definately be using an accountant!

In terms of:

A Directors' Report
Profit & Loss
Balance Sheet
Notes
Detailed Profit & Loss account

Where could i get hold of the format of these? as an example

I shall submit the abbreviated accounts for Companies House - what are the necessary Companies Act statements to be inserted? is it only the Companies House abbreviated accounts have to be submitted not any other form of accounts.

The AP is from June to May when the company started trading so I only think I need to complete one CT600?

The training costs (£5.5k) were incurred prior to trading (approx 8 years ago though) the remaining are ongoing but all are to improve on the qualifications to do the work in my field. I would have thought this is a cost and should not come under capital due to the length of time they have been incurred.

Cheers for this!

**TykeMerc** · 17 February 2011, 21:09

I imagine training done a considerable time before the business was set up (12 months+ would be considerable) can't really be argued as a business cost of any type by anyone reasonable. I can't think of an argument to defend it.

Corporation Tax Form CT600