My Ltd company made no income for last year : Can I file the return by myself?

malc_b

Is your called up share capital really £10k? Is is very odd for small companies to be set up that way.

Typically, although you may have a possible £10k of shares you only issue enough to give dividend rights. So for a man and wife company you would issue 2 x £1 shares so that each would get equal dividends to make best use of each's tax allowances. If the company needed £10k working capital to start up then then that would be done as a loan from the man and wife. That way when the company made profits you could pay the £10k back straight away. With £10k in shares you cannot get the £10k seed money back without reducing the number of shares.

Also, you cannot pay dividend unless the company made a profit or at least is in profit from previous years (and the latter would be risky). It is trading fraudulently (AFAIR) to pay dividend (which is on profits) when the company is making a loss. If you have paid dividend when in a loss then you need advice.

liam8282

As the OP is only talking about a loss of £9400 in 2012, I would presume that is the amount of reserves brought forward.

As there has been no income, the dividend of £6000 would be illegal.

OP, you need to go to an accountant.

There isn't enough information for anybody to go on here, mistakes are going to be made and you could find yourself in a whole lot of trouble.

What happened to the £6000 you took out of the business, can't you use that to pay your accountancy bill?

With losses this year and last year, your accountant may even be able to claim some tax back (if you have paid any) and that might end up covering your fees.

SarahPink

The 6000 as dividend was for year 2011-2012 : in fact I think my accountant made a mistake ssince I wanted to reduce the capital I put in the company to just 4000 or less.I called companies house a week ago for this purpose and they said I can reduce the capital by myself on their website.

lazer

SarahPink wrote: »

The 6000 as dividend was for year 2011-2012 : in fact I think my accountant made a mistake ssince I wanted to reduce the capital I put in the company to just 4000 or less.I called companies house a week ago for this purpose and they said I can reduce the capital by myself on their website.

In that case the £6,000 should already be included in the Profit & Loss of - 9,400

Be aware that if you remove £6,000 of the capital then your shareholders funds will be negative - and it will therefore be technically insolvent (AFAIK as liabilites are greater than assets)

SarahPink

liam8282 wrote: »

As the OP is only talking about a loss of £9400 in 2012, I would presume that is the amount of reserves brought forward.

As there has been no income, the dividend of £6000 would be illegal.

OP, you need to go to an accountant.

There isn't enough information for anybody to go on here, mistakes are going to be made and you could find yourself in a whole lot of trouble.

What happened to the £6000 you took out of the business, can't you use that to pay your accountancy bill?

With losses this year and last year, your accountant may even be able to claim some tax back (if you have paid any) and that might end up covering your fees.

There is a misunderstanding since on the account there are different Profit & Loss fields. For 2012 I have :

Profit/(loss) on ordinary activities before taxation = +£9300
Profit/(loss) for the financial year = +£9300

Net assets/(liabilities) = 539

Profit and loss account = - £9400 (I think it should be -£9300)
Shareholders' funds = 539

SarahPink

lazer wrote: »

In that case the £6,000 should already be included in the Profit & Loss of - 9,400

Be aware that if you remove £6,000 of the capital then your shareholders funds will be negative - and it will therefore be technically insolvent (AFAIK as liabilites are greater than assets)

My liabilities are just around £500, could that be fine to reduce the capital £500 or £1000?

lazer

SarahPink wrote: »

There is a misunderstanding since on the account there are different Profit & Loss fields. For 2012 I have :

Profit/(loss) on ordinary activities before taxation = +£9300
Profit/(loss) for the financial year = +£9300

Net assets/(liabilities) = 539

Profit and loss account = - £9400 (I think it should be -£9300)
Shareholders' funds = 539

I'm confused now

Do you have another field accounting for the missing amount as your Shareholders funds match your net assers liabilities

Called up share capital 10,000
P&L Account (9,400)
?????? (61)

Total Shareholders Funds 539

liam8282

As I said, there isn't enough information here, mistakes are going to be made and you could in end up in a lot of trouble.

You are trying to get your accounts done for free, by asking random people on an open internet forum, giving them snippets of information and then just taking the bits that seem to suit your needs, and then trying to prepare a set of accounts from that.

No offence or confrontation intended, but you would be better off biting the bullet and going to an accountant.

imoneyop

liam8282 wrote: »

As I said, there isn't enough information here, mistakes are going to be made and you could in end up in a lot of trouble.

You are trying to get your accounts done for free, by asking random people on an open internet forum, giving them snippets of information and then just taking the bits that seem to suit your needs, and then trying to prepare a set of accounts from that.

No offence or confrontation intended, but you would be better off biting the bullet and going to an accountant.

Totally agree.

I could say "put £10 in Box A and 1000 in Box B" if you did that and it proved wrong it is you that is going to be facing the fines - I'm just a random anonymous person on the net who gave a few numbers that you stupidly chose to accept on face value.

If the company has traded as little as you claim then the accounts should be a simple matter for an accountant to produce and will probably cost a lot less than the fines if you get it wrong.

Atidi

SarahPink wrote: »

I am trying to file my account but I have a question :

If for 2012, my "Called up share capital" was £10000 and the "Profit and loss account" was -£9400 that means for 2012 the shareholders's funds was £10000-£9400=£600.

So, I would like to know : for the next year (2013) if it is right that the "Called up share capital" to be £600 instead of £10000 (there is no cash anymore in the business account)?

I've just answered this in the thread you created asking this question :cool:

https://forums.moneysavingexpert.com/discussion/4811224