Company filed as dormant, but wasn't quite.


T

tomt

I filed accounts for the first year of my company stating that it was
dormant I wasn't actively managing the company however I did have some
sales equating to about £100 and some costs, overall I made a loss. So
I don't owe any tax but what I did was incorrect, at the time I was
suffering ill health which clouded my judgement and I didn't
appreciate the consequences of what I'd done. Im keen to rectify the
situation but what are the consequences of going back to Companies
House and Inland Revenue to admit to my mistake. Or should I keep
quiet and role the revenues and costs into my following years account.
 
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T

Troy Steadman

I filed accounts for the first year of my company stating that it was
dormant I wasn't actively managing the company however I did have some
sales equating to about £100 and some costs, overall I made a loss. So
I don't owe any tax but what I did was incorrect, at the time I was
suffering ill health which clouded my judgement and I didn't
appreciate the consequences of what I'd done. Im keen to rectify the
situation but what are the consequences of going back to Companies
House and Inland Revenue to admit to my mistake. Or should I keep
quiet and role the revenues and costs into my following years account.
Common sense suggests you should do exactly that.

It is normal when you are doing this year's accounts to find something
you got slightly wrong in last year's. Unless there is material tax
due - and there obviously isn't - put the error right this year and
stop worrying about it.
 
T

tomt

Common sense suggests you should do exactly that.

It is normal when you are doing this year's accounts to find something
you got slightly wrong in last year's. Unless there is material tax
due - and there obviously isn't - put the error right this year and
stop worrying about it.
wrt to costs one cost was a capital cost, the purchase of a computer.
Now whether sales were in year one or year two makes no difference
total P&L for year 2, but whether I applied deprecation on the
computer for years one and two or just start from year two does make a
difference. Im happy to just start from year two even though it was
purchased in year one, is this the most sensible thing to do?
 
T

Troy Steadman

wrt to costs one cost was a capital cost, the purchase of a computer.
Now whether sales were in year one or year two makes no difference
total P&L for year 2, but whether I applied deprecation on the
computer for years one and two or just start from year two does make a
difference. Im happy to just start from year two even though it was
purchased in year one, is this the most sensible thing to do?- Hide quoted text -

- Show quoted text -
Depreciation does not make a difference because depreciation is not an
allowable expense. You claim capital allowances on your computer, and
I suppose you have disclaimed your First Year Allowance of 50%, but
can claim Capital Allowances at 25%.

Peter will be along shortly to tell you you need an accountant. In
twiddling these various options and complications, ensuring nothing
goes to waste, a good accountant can often save you more than he
charges.
 
P

Person

On 23 Jun, 10:51, (e-mail address removed) wrote:

Peter will be along shortly to tell you you need an accountant. In
twiddling these various options and complications, ensuring nothing
goes to waste, a good accountant can often save you more than he
charges.

"a good accountant" = not Peter
 
T

tomt

Depreciation does not make a difference because depreciation is not an
allowable expense. You claim capital allowances on your computer, and
I suppose you have disclaimed your First Year Allowance of 50%, but
can claim Capital Allowances at 25%.

Peter will be along shortly to tell you you need an accountant. In
twiddling these various options and complications, ensuring nothing
goes to waste, a good accountant can often save you more than he
charges.
I thought depreciation was put against the Profit and Loss Account at
a rate of 25% for office Equpiment (Same as Capital Allowance), and
that the First Year Allowance was just the IR saying you can claim a
larger depreciation rate than than normal in certain circumstances.
 
E

Edward Cowling London UK

In message said:
I filed accounts for the first year of my company stating that it was
dormant I wasn't actively managing the company however I did have some
sales equating to about £100 and some costs, overall I made a loss. So
I don't owe any tax but what I did was incorrect, at the time I was
suffering ill health which clouded my judgement and I didn't
appreciate the consequences of what I'd done. Im keen to rectify the
situation but what are the consequences of going back to Companies
House and Inland Revenue to admit to my mistake. Or should I keep
quiet and role the revenues and costs into my following years account.
I love the way you're practising the mitigation statement on us :)

No one is going to call in the SFO for 100 quid. Put it in the following
year and don't lose sleep over it.
 
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T

Troy Steadman

On 23 Jun, 10:51, (e-mail address removed) wrote:

Peter will be along shortly to tell you you need an accountant. In
twiddling these various options and complications, ensuring nothing
goes to waste, a good accountant can often save you more than he
charges.

"a good accountant" = not Peter
Not "a good accountant" <> not Peter?
 
T

Troy Steadman

I thought depreciation was put against the Profit and Loss Account at
a rate of 25% for office Equpiment (Same as Capital Allowance), and
that the First Year Allowance was just the IR saying you can claim a
larger depreciation rate than than normal in certain circumstances.
Depreciation can be at any rate and should represent the true cost of
writing off a piece of capital equipment.

Say you buy a £100K machine which you expect to last 10 years. Write
it off at £10K a year and you have some way of working out whether you
are making a Profit or a Loss using that machine, year on year.

The tax treatment is unconnected and usually very different.
 
A

Alan Ferris

I love the way you're practising the mitigation statement on us :)

No one is going to call in the SFO for 100 quid. Put it in the following
year and don't lose sleep over it.
Simply not material.....

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
( ) . ( )
(")_(")
 
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