Companies House have asked me to revise my accounts, but I need to be sure I make the right corrections. Below is my Annual accounts followed by the Companies House response and my question:
Assets Owned 1000
Assets Cash 7000
Liabilities Owed Loan 12000
PROFIT & LOSS ACCOUNT
Gross Profit Loss -1010
Net Profit Loss -1010
Companies House response:
1.) The balance sheet needs to show Net assets and this should then balance against the total shareholder’s funds.
2.) The capital and reserves section of the balance sheet needs to show the called up share capital. Our records indicate a share capital of 20,000 ordinary shares with a nominal value of £1.00 each for a total of £20,000
Could you please show how I need to revise my accounts? I am particularly confused about how my accounts are affected by a nominal share capital.
From the information that you have provided it is impossible to produce accounts. Accounts are prepared from the accounting double entries. The balance sheet must balance and the share capital of £20,000 must be shown in the accounts somewhere.
Filing accounts in the correct format needs to be done at Companies House. Full accounts along with a CT600 corporation tax return also needs to be filed at HMRC, even if a loss has been made.
If you do not have the experience and expertise to prepare the statutory accounts and tax returns yourself then you will need to appoint an accountant to do this on your behalf.
Late filing of the accounts at Companies House incurs a fine as does late filing of the Corporation Tax Return at HMRC. So it is in your interest to get someone to look at this asap.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.