Reply to: help needed for Depreciation & VAT yr accounts

[css_jay99]

I'm confused as to how you managed to submit last year's accounts successfully. Did you not consider VAT or depreciation then?

I only registered for VAT last june year. Co. started in dec 2005 but was using a getting paid via a friend's Co.
I did not have any Fixed asset either, just issuing invoices

there is the option of a pre-registration expense, if the laptop was bought within six months prior to incorporation.
£850 is quite a lot for a second-hand laptop I think?

I bought the laptop a year previously for £1200 so not a bad price selling it to myself especilly after it was pimped out with a 300Gb HDD and WUXGA screen.

css_jay99

[dude69]

You are quite right, I am such a fool !


boy o boy i almost had a heart attack when speaking to hmrc.

After all the stress of trying to get my accounts finished today, it turns out that my 2007 return is not due until dates listed by dude69. That was the good news.

The bad news that almost gave me a heart attack was when they told me that I was already on penalty cos they have not received my 2006 returns except the payment for the period.

It turned out that when I stretched my Acounting period for 1 year and submited my return last year (2006 Return), their system rejected my return (unknown to me) but still gave me the acknowledgement confirmation.

I'm confused as to how you managed to submit last year's accounts successfully. Did you not consider VAT or depreciation then?

[css_jay99]

Not sure what the OP is on about. Tax year is Jan 2007 - Dec 2007, so the relevant dates are:

Companies House annual return: 28 January 2008
Corporation Tax payable October 1 2008
Accounts to Companies House October 31 2008
CT600 to HMRC December 31 2008

also PAYE return 19th May 2008

Also VAT returns every quarter.

You are quite right, I am such a fool !


boy o boy i almost had a heart attack when speaking to hmrc.

After all the stress of trying to get my accounts finished today, it turns out that my 2007 return is not due until dates listed by dude69. That was the good news.

The bad news that almost gave me a heart attack was when they told me that I was already on penalty cos they have not received my 2006 returns except the payment for the period.

It turned out that when I stretched my Acounting period for 1 year and submited my return last year (2006 Return), their system rejected my return (unknown to me) but still gave me the acknowledgement confirmation.

So this morning when HMRC told me I could not get an extension, she was going on the basis that it was 2006 rtn which would now be very very late by any account. Explains why she said NO.

They finaly figured the problem out and agreed to make the corrections and tick me off as a good boy. Strangely, I would have thought that they should have sent me demands which will bring the error to my notice..... A happy ending nevertheless .

So I now have more time to finish off my 2007 books!

Its such a good feeling if you dont have the taxman on your back.


Brings me to another question.
A friend of mine is in tulip with the inland revenue. He is a medical doctor that went via a bad patch with work (GMC complaint). Rather than keep working he went into a meltdown and stopped working. He obviously as a result of this lost interest in everything meanwhile HMRC filling & payments were ignored.

HMRC have now been on his case with owings and latepayment.....

Can he come to some arrangements with HMRC to freeze his debt ?.
Problem is I dont think he has any money left after almost 2yrs of not working. He is probably going to be loosing his house as well


As I said before, your contributions are priceless. Now i have more time finishing the payment system I am paid to do rather than sneakily preparing my accounts

what does OP mean?

css_jay99

[dude69]

css_jay99

£100 for late submission of CT600 (could be more if this is late for a second time)
£100 late filing penalty from Companies House (I presume you haven't submitted the accounts if haven't finished off the accounts for HMRC)
Interest is accruing on the corporation tax payable.


No doubt very soon you will be back asking if the fines / interest payable are allowable in the tax comps…

Not sure what the OP is on about. Tax year is Jan 2007 - Dec 2007, so the relevant dates are:

Companies House annual return: 28 January 2008
Corporation Tax payable October 1 2008
Accounts to Companies House October 31 2008
CT600 to HMRC December 31 2008

also PAYE return 19th May 2008

Also VAT returns every quarter.

[dude69]

Hi Robot,

Sorry missed the point about this being his own laptop to his company, you are correct that you cannot claim first year allowances as they are connected persons, this is covered under Capital Allowance act 2001 section 217.

Just WDA's should be claimed for the laptop at 25% for the year to 31/12/07

Thanks
Neil

there is the option of a pre-registration expense, if the laptop was bought within six months prior to incorporation.
£850 is quite a lot for a second-hand laptop I think?

[dude69]

I suspect it has.

But out of interest, I'm guessing your other clients pay for that level of advice whereas the OP has said before that he thinks accountants are a waste of time and money (despite our best advice...). So where would you draw the line between being helpful and giving away expensive-to-acquire business advice for free?

generally there are two reasons for this:

(1) the accountant is bored and likes to answer questions, it doesn't impact on his business in any way
(2) the accountant figures that by writing his name and company name in his signature he is getting plenty of publicity, as a clued-up guy, and even if the OP is never going to be a client, he is quite likely to get PMs and so on from other potential clients as a result.

[Robot]

The filling date is end of today, surely I cant get charged for corp tax yet since thats only due 9months after year end?

css_jay99

If the accounting reference date is 30 April 2008, why the big panic? You have time on your side; there will be no fines or penalties.

Perhaps it is time for you to review the filing dates, of the documents you are trying to produce.

[css_jay99]

css_jay99

£100 for late submission of CT600 (could be more if this is late for a second time)
£100 late filing penalty from Companies House (I presume you haven't submitted the accounts if haven't finished off the accounts for HMRC)
Interest is accruing on the corporation tax payable.


No doubt very soon you will be back asking if the fines / interest payable are allowable in the tax comps…

The filling date is end of today, surely I cant get charged for corp tax yet since thats only due 9months after year end?

you read my mind about if fines... are allowable , are they ?

Still though, should i just submit what i have for now and is it sufficient to stop the £100 penalty. Further what happens if my balancesheet is slighly off the mark should I submit it now as well?

css_jay99

[Robot]

Cheers,

Called HMRC this morning asking if I could get an extention till next week so i can sort my balance sheet out and then add that to my computation. The lady was a right old battle axe saying no deal........

I thought it was possible to get an extention (says so in Guide)?

If the answer is no, should I:-
1) Submit 1 week late and bear the £100 late fee
2) Submit now with all computations, P&L BUT no BalanceSheet - whats the implication of this?


css_jay99

css_jay99

£100 for late submission of CT600 (could be more if this is late for a second time)
£100 late filing penalty from Companies House (I presume you haven't submitted the accounts if haven't finished off the accounts for HMRC)
Interest is accruing on the corporation tax payable.


No doubt very soon you will be back asking if the fines / interest payable are allowable in the tax comps…

[css_jay99]

Hi,

Yes the corporation tax will be a creditor in your accounts at your y/end date

Thanks
Neil

Cheers,

Called HMRC this morning asking if I could get an extention till next week so i can sort my balance sheet out and then add that to my computation. The lady was a right old battle axe saying no deal........

I thought it was possible to get an extention (says so in Guide)?

If the answer is no, should I:-
1) Submit 1 week late and bear the £100 late fee
2) Submit now with all computations, P&L BUT no BalanceSheet - whats the implication of this?


css_jay99

[Danbro]

Danbro

cheers,

Its going to be hard job finishing off the balance sheet as I am having to reconcile my sage accounts with my Excel version and the bank. Good news is that I found a raised invoice that has not been paid from last year

Do I need to put the tax amount as a creditor in the BS ?. I did that for my 2006 accounts but not sure

looks like its going to be a sleepless night for me

css_jay99

Hi,

Yes the corporation tax will be a creditor in your accounts at your y/end date

Thanks
Neil

[css_jay99]

cheers,

Its going to be hard job finishing off the balance sheet as I am having to reconcile my sage accounts with my Excel version and the bank. Good news is that I found a raised invoice that has not been paid from last year

Do I need to put the tax amount as a creditor in the BS ?. I did that for my 2006 accounts but not sure

looks like its going to be a sleepless night for me

css_jay99

[Danbro]

Danbro Accounting Ltd

with the tax return,

Do I have to send in a Balance sheet as well ? or will the following be OK? :-
1) P&L
2) CA computation - schedule of Fixed assets showing CA/WDA charges for the year
3) Tax computation - using the maginal relief calculator on HMRC web

Final day is tomorrow

css_jay99

HI,

I would suggest sending in a balance sheet, not quite sure on HMRC's requirement as I have always sent a full set of accounts, they like to see balance sheets on small sole traders so I would definately suggest sending a balance sheet.

Balance sheet

Fixed Assets
Current Assets
Current liabilities

Net assets X

Represented by
Retained profits
Share capital

The top and bottom of the balance sheet needs to balance!!

Then send that in with the P&L, and tax computations, don't forget you will need to complete a CT600, the short version will probably be applicable for you, really its the CT600 they want the most

Thanks
Neil

Thanks

Neil

[css_jay99]

with the tax return,

Do I have to send in a Balance sheet as well ? or will the following be OK? :-
1) P&L
2) CA computation - schedule of Fixed assets showing CA/WDA charges for the year
3) Tax computation - using the maginal relief calculator on HMRC web

Final day is tomorrow

css_jay99

[css_jay99]

Let me know if this hasn't answered your question

Thanks very much, it answers my question

Don't get me wrong, I'm all for professionals helping out our unqualified co-freres with their problems and I'm not in any way saying you shouldn't.

But wearing the "educating the newbie contractor" hat on that I seem to have acquired over the years, it was a useful example of why "doing the accounts" is a far from simple exercise, and professional help is not about how much a year you pay, it's about how much a year it saves.

You guys make the forum the place to be with all your answers. getting similar answers off my accountant will leave me with the need for fast acting pain killers expecially when he takes 1/2 hour to answer a simple question that can be said in a few words. my accountant for instance knows nothing about the discount 13% on flat rate scheme; beign that he only deals with (big) companies.

Just WDA's should be claimed for the laptop at 25% for the year to 31/12/07

got that as well now


cheers Guys, I can now finish off my tax return.



css_jay99