non-trading 1st set of accounts


J

jim

Hi, I'd appreciate some advice.

Having set up a Ltd company 10/10/2002, companies house has just reminded me
that my accounting date is 31 Oct, and accounts should be deliverd by
10/8/2004.

I have not traded, but have spent some money (some with receipts, some with
VAT receipts) on the business - approx £2000 on PC, office, web design, web
hosting.

I will probably spend some £3000 more before October, and have little or no
sales by 31 Oct.

Questions:
1) Am I allowed to do my own accounts? (I've done ACCA Cert Diploma, so
understand the basics)

2) Assuming I either don't trade or only trade a little bit (eg sales<£1000)
is there any point in getting a professional to do the accounts. ie is there
a potential for an accountant to save me money.

3) Can I defer costs from this year to offset against profit or VAT next
year ?

TIA
jim
 
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P

Peter Saxton

Hi, I'd appreciate some advice.

Having set up a Ltd company 10/10/2002, companies house has just reminded me
that my accounting date is 31 Oct, and accounts should be deliverd by
10/8/2004.

I have not traded, but have spent some money (some with receipts, some with
VAT receipts) on the business - approx £2000 on PC, office, web design, web
hosting.

I will probably spend some £3000 more before October, and have little or no
sales by 31 Oct.

Questions:
1) Am I allowed to do my own accounts? (I've done ACCA Cert Diploma, so
understand the basics)
Yes. But consider getting a book showing disclosure requirements for
statutory accounts for small companies. The following link may help
with layout

http://www.vtsoftware.co.uk/final_accounts/samples.htm
2) Assuming I either don't trade or only trade a little bit (eg sales<£1000)
is there any point in getting a professional to do the accounts. ie is there
a potential for an accountant to save me money.
You will have to do a corporation tax return. If you have enough tax
knowledge to do that I wouldnt have thought it necessary at this
stage.
3) Can I defer costs from this year to offset against profit or VAT next
year ?

TIA
jim
You can capitalise fixed asset purchases and calculate capital
allowances and any tax losses can be carried forward.

You can include in your VAT return assets still used in the business
purchased 3 years previously and services 6 months previously to
registration. You need to consider whether it's worth the effort or
economically favourable to voluntarily register for VAT. Generally
speaking it makes more sense if your customers are VAT registered and
less sense if they aren't.



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Peter Saxton

Thanks for the reply.
(note: I forgot that I won't be registering for VAT until I have to!)

In question2 I was assuming that if sales are <£10k then profit will be
<£10k and so no corporation tax. As there is no tax to pay, what financial
benefit could an accountant bring?
As long as any losses are brought forward I don't suppose it would
make a difference. The problem is that every case is different and
unless an accountant looks at the paperwork it is impossible to be
100% certain. I'd guess that there's a good chance it is not relevant
as long as you know how to do a basic tax computation.
Is the corporation tax return a form? And is a basic accounting knowledge
plus common sense enough to complete/produce it?
You would only have to do 2 or 3 pages of the form. A basic tax
knowledge should suffice in your case.



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