Form 42 - market share price?

Re: shares

Alex,

You shouldl have added full details of the transfer in the register of members. This will (should) have been provided by the formation agents. You should also have issued a share certificate - but the register is definitive.

If you have made your first annual return they you should have included these details along with the officers etc.

If you did not pay for them then in the account the amount you were going to pay should be in the captial accounts as paid up share capital, you could simply then debit the directors current account for this amount. This could amount to a theoretical breach of the companies act (since it would go overdrawn). I doubt the shareholders (you) would make a complaint about being disadvantaged though.

Since this amounts to an interest free loan then you *should* declare this on your tax return and pay tax on the benefit. You can clear the overdrawn amount by paying the company or by other amounts the company owes you, e.g. salary, dividend, expenses etc.

Re: shares

For some reason form 628b springs to mind...

I blame the drugs.

Re: shares

I suppose you should really record the ownership of the shares in the company register thing (can’t remember the proper name) which you should have been given when you set up the company. And in the companies house return when that comes round (once a year).

Re: shares

From what little I remember of forming my Ltd, I just paid £100 into the company bank account.

If I was sufficiently motivated, I'd did out the paper work, but I'm not...

shares

Oh well, I needed to create company in a rush as I received short term but lucrative contract that I wanted to put through company. I did not want to have £100 shares as it looked to me like el cheapo company, so I gone for £1000 fully expecting to pay them, but I did not ... :rolleyes

Now, do I need to just transfer £1000 from personal to business account to close the matter? Do I need any special paperwork, perhaps letter from myself to the company stateing I am buying shares for that amount etc?

Re: answer

If you issued all 1000 shares to yourself then the market value of the company is £1,000 (assuming £1 per share) and legally you must put £1,000 of you own money into the company, as you bought them.

I gues you could sell 900 back to the company later and get some money back.

Silly boy. :rolleyes

answer

Well had a chat with official people about that and they said basically put face value as market value -- nobody can easily argue that its not the case, consequently there are no tax issues since no "free" shares were given.

The only issue is having actualy paid for shares to the company -- about 9 months after purchase took place. Can any sanctions be applied to me for that?

subscribed?

During company formation I personally subscribed to all 1000 shares, I take it this means they were "issued" to me?

issued shares

Damn good question -- I am checking now how many I issued to myself, I think all

Re: money

I’m not sure about this, but you didn’t necessarily issue all those 1000 shares. So you personally could have bought 10 of them (these become “called up” shares in the accounts). The other 990 remain with the company.

I think you (personally) have to pay the company for the shares you bought.

P.S. did I mention that I’m not sure of this.

Re: money

Yes, but how many did you issue? I specified 1,000 shares @ £1 each for my company also, but I've only issued 2.

money

don't think I can now since I specified 1000 shares worth £1 each during formation. :rolleyes

Can't you just assign a nominal value of 1p per share?

OH in "only guessing mind" mode

I am about to fill in Form 42 for New companies (www.hmrc.gov.uk/sharesche...anies.pdf) which is much simplified version of Form 42, and I am a bit confused as to what market price to put on shares. How the feck one can determine market price in case of a small company?

Particular concern is that on tax charged column. Suppose if I put same market price as the face value, then I won't have any "gains", ie shares won't be "free", so am I correct thinking I don't need to pay any stinking tax on these?

Finally, since I "bought" shares, should I actually transfer the amounts stated to business account to show that acquisition actually took place? :rolleyes