Last year, I accidentally put my 'cash at bank and in hand' as too high

[leonag12]

I've been a fool. Last year I attempted to do my own abbreviated accounts. Purely accidentally (ended up paying more tax), I listed my 'cash at bank and in hand' as too much.

The Ltd company has less than £1,000 going in/out per year. I put the 'cash at bank and in hand' , as £146 too much. I paid a small amount of corporation tax.

How do I resolve this, for this accounting year? I am now earning a full-time amount so will get an accountant for the next year!

Do I put a modification on the 2nd years? (the year I am currently filing)
Could I just put an expense of £146? Since I have lost myself money, not HMRC - would this be ok do you think? I’m not very concerned with having paid slightly too much tax.

Thanks (lesson learnt)

[northernladuk]

Add some extra mileage to your your journey until you have recouped the cash you think you lost and don't go highlighting your failures to HMRC? ;-)

[leonag12]

Thanks. I was thinking about just listing it as a hosting expense or something similar. I'm the one who lost out (a bit), not HMRC, so i don't think it's much of an issue.

[Sockpuppet]

I'd be more worried that your accounts don't add up. Then again its £146. I'd just forget it and after 6 years "poof" HMRC will no longer be interested.

[Contreras]

Thanks. I was thinking about just listing it as a hosting expense or something similar. I'm the one who lost out (a bit), not HMRC, so i don't think it's much of an issue.

I'd be more concerned that the accounts don't balance. If you want to rectify it then probably you'd need to submit revised accounts - something the new accountant will advise on if he/she wants your business.

Do not cook the books whatever you believe the company 'owes' you. HMRC would rightly view it as falsifying expenses, in effect fraud.

Either fix the mistake properly or pretend it never happened.

[SarahL2012]

How did your balance sheet balance? Your cash figure wouldn't have given rise to the CT liability so did you overstate your P&L?

This year's accountant will have the wrong brought forward figures without an adjustment. They should advise you on best course of action

[Clare@InTouch]

How did your balance sheet balance? Your cash figure wouldn't have given rise to the CT liability so did you overstate your P&L?

This year's accountant will have the wrong brought forward figures without an adjustment. They should advise you on best course of action

^ This.

The nature of accounts mean that you can't have one figure wrong without another figure also being wrong as it's all double entry.

Cash balances don't effect CT. Did you also file your own CT return with the wrong profit figures?

[Scruff]

Just another foolish person who thinks that they can do their own Accounts and Tax return? At the end of the day 20% of £146 hardly makes sense in any event. It's going to cost you the best part of £1K to engage an Accountant to untangle the mess and deal with HMRC...

[Jessica@WhiteFieldTax]

For the amounts involved, you can probably adjust it this year? I doubt anyone at HMRC would loose much sleep over it.

[DirtyDog]

How did your balance sheet balance?

When I did accountancy in my first year at university, most of my balance sheets didn't balance. Nor did the trial balances.

That's why I pay an accountant now.