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    • Flakjack
    • By Flakjack 14th Aug 19, 9:42 PM
    • 3Posts
    • 0Thanks
    Micro-Entity Corporation Tax Help!
    • #1
    • 14th Aug 19, 9:42 PM
    Micro-Entity Corporation Tax Help! 14th Aug 19 at 9:42 PM
    Hi Guys,

    Let's see if the fine people of MSE can help with this one (I've already recommended she gets an accountant next time and considers re-registering as a sole trader, rather than a Ltd company).

    A friend of mine has asked for some help, she runs a small photography business and has a Corporation Tax Return due by Thursday next week. Her books are really well kept and everything has been recorded but she's panicking as she doesn't understand the terminology.

    From going through her accounts over the time for which the return is due, her turnover was fairly small (it was her first year of trading and she had twin babies at the same time) but she's made 2570 from her clients, offset against 2217 of costs, of which 1800 is equipment she's bought for the business (cameras, cards and lenses). She owns no other assets as part of the business, owes no money, no salaries have been taken or money deducted from the business and all invoices generated in the period due were paid on the day, so nothing should carry over.

    Does anyone have the faintest idea how I would record this against the fields in a Corporation Tax Return form as follows:
    • Called up share capital not paid:
    • Fixed Assets:
    • Current Assets:
    • Pepayments and accrued income:
    • Creditors (amounts falling due after one year):
    • Provisions for Liabilities:
    • Accruals and Deferred Income:
    • Total Net Assets (Liabilities):
    • Capital and Reserves:r

    Any help would be greatly appreciated and recognised!
    Last edited by Flakjack; 14-08-2019 at 9:46 PM.
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    • 00ec25
    • By 00ec25 14th Aug 19, 10:34 PM
    • 8,392 Posts
    • 8,255 Thanks
    • #2
    • 14th Aug 19, 10:34 PM
    • #2
    • 14th Aug 19, 10:34 PM
    sorry but you are asking for a lesson in how to prepare statutory format accounts for a Ltd Co and you don't have a clue what the words mean let alone where to start

    begin with an accountancy text book and come back when you have read it

    you cannot do a CT 600 until you've done the accounts from which you take the numbers. 1,800 should, on the info you provide, be covered by annual investment allowance and so would be an allowable cost in year 1 . The profit appears to be 353 but we have no idea if the balance of the costs are all allowable or not and therefore if that figure is genuinely the taxable profit.

    I recommend you tell her it is beyond your ability and she gets an accountant now, not next time.
    • phill99
    • By phill99 15th Aug 19, 7:26 PM
    • 8,552 Posts
    • 7,728 Thanks
    • #3
    • 15th Aug 19, 7:26 PM
    • #3
    • 15th Aug 19, 7:26 PM
    I have been in business for nearly 20 years. The primary piece of advice I would give is this: get an accountant.

    It is a fools errand to think that you can prepare a statutory document without the slightest bit of knowledge.
    Eat vegetables and fear no creditors, rather than eat duck and hide.
    • BoGoF
    • By BoGoF 15th Aug 19, 8:54 PM
    • 4,842 Posts
    • 4,524 Thanks
    • #4
    • 15th Aug 19, 8:54 PM
    • #4
    • 15th Aug 19, 8:54 PM
    Who's bright idea was it to form a Ltd company for that level of turnover?
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