limited company accounting issues

**Clare@InTouch** · 22 March 2011, 15:29

Hi Antonio,

If you started the company 18 months ago then it may be that nothing is late yet. Have you checked Companies House to see when the accounts should be filed?

Corporation Tax is due 9 months and 1 day after the end of the accounting period, and it's due in one lump sum. You can arrange to spread it over a few months if you can't afford to pay it, but you'll need to file the accounts first so HMRC know what you owe.

You may have needed to file a tax return for the year to 05 April 2010 if you had income to declare in that period too.

I would suggest you have a chat to an accountant who can advise you on what the situation is, given all the facts, and what they would need from you to sort it out. They may well agree a one off fee for the backlog, and then be able to suggest how to carry on from there.

**StopTheEarthIwantToGetOff** · 22 March 2011, 15:32

Originally posted by Antoniouk View Post

Hello Everyone,

I have been reading few post on here that i find very helpful and i thought i should ask a few questions.

Its my 1st time contracting and its getting messy. Not sure of how to go about things.

I started a limited company a year and half ago and an accountant i met through a mate promised he will look after things. Every month i would send him invoices and receipts and he would do his part. Unfortunately his family member had some health issues so he has been travelling back and fort with no time to sort things out. Honestly? he did warn me early

On my own stupid part, i left things till i started getting letter to submit end of year account.
Now am only left with 5k in the company cos have been out of job for few months until last week that i found another short term contract.

Please where do i start? I heard i can save a little money by doing my own book keeping and leaving the rest to a new accountant to sort out. What’s the best and easy to use software or spreadsheet?

1) How late am i and what is the quickest way to solve my prob?
2) I have all the invoices and receipts in a box.
3) Do i have to pay in full the end of year period or can i spread it?
4) Should contact HM revenue or companyhouse of future delay?

Looks like am learning the hard way.

Thanks

Antonio

If I remember correctly you have to deliver your accounts 9 months after your year end and also payup any corporation tax owed.
Its not too late. You don't have the time or skills (from what you posted) to deal with this on your own.

Find all paperwork relevant to your business.
Sort out your paperwork as much as you can (put all bank statements, invoices etc together)
Find a local accountant.
Hand over your paperwork to the accountant.
Prices vary, but you are going to need around £700 + vat for the accountant to sort this out.

I was in a similar situation to you when I started out. So don't worry at this point, but don't delay either.

Good luck

**Antoniouk** · 22 March 2011, 15:58

Thank you very much for the quick reply guys.

I have just dug out the paper and it looks like its a bit longer than i thought. arrgghh!
it is for period ending "May 2010"

Do i need to contact them while am sorting out things with a new accountant? Apart from the late penalty what else can happen?

**Pondlife** · 22 March 2011, 16:05

Download all your company account bank statements.
Stick them in excel with everything "in" and "out" on separate sheets.
Check you can tick off each transaction with a receipt/invoice.

Pick a reputable accountant from on here.

Email them the spreadsheet and ask what it'll cost to fix.

Do it now.

**Clare@InTouch** · 22 March 2011, 16:23

Originally posted by Antoniouk View Post

Thank you very much for the quick reply guys.

I have just dug out the paper and it looks like its a bit longer than i thought. arrgghh!
it is for period ending "May 2010"

Do i need to contact them while am sorting out things with a new accountant? Apart from the late penalty what else can happen?

If you're a May year end then you're late at Companies House. You don't need to call them, just accept the fact that you'll get a penalty when you do file them. Late Filing Penalties - GP5

They can threaten to strike off your company if you're late filing, but will usually hold off if you let them know you're doing all you can to bring the record up to date.

The accounts need to be with HMRC 12 months after the year end, or they will issue a £100 penalty too. This may be a slightly odd date as opposed to the actual month end as it equates to 12 months from incorporation (then a stub period to take you to month end).

You should also have filed a tax return then for 09/10, and I'd suggest you contact HMRC to let them know as soon as possible. An accountant can of course also help you with this.

If you're willing to add your data into a spreadsheet/accounting program then I don't think you should be looking at more than around £550 plus VAT for the accounts.

**Antoniouk** · 22 March 2011, 16:57

Originally posted by Clare@InTouch View Post

If you're a May year end then you're late at Companies House. You don't need to call them, just accept the fact that you'll get a penalty when you do file them. Late Filing Penalties - GP5

They can threaten to strike off your company if you're late filing, but will usually hold off if you let them know you're doing all you can to bring the record up to date.

The accounts need to be with HMRC 12 months after the year end, or they will issue a £100 penalty too. This may be a slightly odd date as opposed to the actual month end as it equates to 12 months from incorporation (then a stub period to take you to month end).

You should also have filed a tax return then for 09/10, and I'd suggest you contact HMRC to let them know as soon as possible. An accountant can of course also help you with this.

If you're willing to add your data into a spreadsheet/accounting program then I don't think you should be looking at more than around £550 plus VAT for the accounts.

Thanks alot Clare..... am on it right now! got loads of papers to sort out.
I definately wont let it slip again...

Can anyone recommend any easy to use software?

**Pondlife** · 22 March 2011, 17:01

Originally posted by Antoniouk View Post

Thanks alot Clare..... am on it right now! got loads of papers to sort out.
I definately wont let it slip again...

Can anyone recommend any easy to use software?

Excel or the free openoffice spreadsheet.

It's all you will need since you don't have an accountant yet.

**Clare@InTouch** · 22 March 2011, 17:12

Originally posted by Pondlife View Post

Excel or the free openoffice spreadsheet.

It's all you will need since you don't have an accountant yet.

Agreed. Do as Pondlife suggested and list everything out in order on the bank and reconcile it to the bank statements, then a seperate list of any expenses, mileage and sales invoices. If you've done VAT returns, show logical workings for each submission there too.

If you can provide a full spreadsheet to an accountant that makes sense, the fee should take that into account.

**Antoniouk** · 22 March 2011, 17:38

Originally posted by Pondlife View Post

Excel or the free openoffice spreadsheet.

It's all you will need since you don't have an accountant yet.

Thanks alot

limited company accounting issues