Small accounts/CT600 error

[VectraMan]

I had my first experience of the new online accounts/CT submission to replace the old PDF. One positive thing I will say is that it's occurred to somebody in HMRC that the help should actually provide additional information and help people, which it never did with the PDF version.

Like the old you have to enter and submit the CH accounts before you get to the CT section. Doing this it asks for "tax" and explains that this is a % of ( turnover - costs ) and gives you a link to find the current rate whereupon a big box appears saying "20%". And this is also included in "amounts falling due within one year", because it is. All very simple.

Having submitted the accounts section I get to the CT section and it asks if I have previous losses to include. Because I was a permie the previous year my company did nothing but lose money in bank charges, about £70, so I included that. But now I've included that the CT calculated and that I have to pay is about £8 less than I entered in the accounts.

Do I need to worry? Do I need to hire an accountant to ask? Will I get a prison cell with a nice view? And should I correct the 2016 values when I submit the 2017 accounts?

Thanks for any help / abuse from NLUK.

[northernladuk]

Sounds far too complicated for me.. I'm out.

[FK1]

Hi VectraMan

Hope you are well there in a prison cell and there still is enough space for another freeman.

Did you use
https://www.tax.service.gov.uk/cato ?

Did you use "micro entity" option?

https://www.gov.uk/government/consul...cros-directive

HMRC’s online filing software to file basic micro entity accounts with Companies House using simplified financial statements (profit & loss account and balance sheets).

BTW I pay directors using annual frequency via Basic PAYE tools. HMRC charged me with £200 as "Special charges" for "Late filling" as it seems they still expect NIL FPS every month. Will call them.

[VectraMan]

Haven't had the knock at the door yet.

Yes I think it was those. The NIL PAYE submission is a PITA; I think I may have had that once many years ago though got away without a fine.

This is still a serious question if anybody wants to tackle it. When I do the accounts for 16/17 and I have to put in the previous years values should I put in the same value with the error so that it matches last year, or should I correct it so that it matches reality?

[Darren at Fox-Bartfield]

Corp Tax

Any over/underpayments of corp tax go against the CT charge in the profit and loss account for the following year. So you don't adjust the comparatives in the 15/16 accounts, they stay as you'd submitted, just take any difference to the CT charge in the current year's P&L.

In effect this will mean this year's P&L CT figure will be a few quid different to the provision in the balance sheet.

[Maslins]

Just to clarify your concern is that due to using (fairly trivial) losses brought forward, the final CT liability per the CT return doesn't quite match the CT liability quoted in the accounts? If so, don't worry about it.

From a legal perspective, the CT figures shown in the accounts are arguably an estimate anyway. Reason being whilst you've basically got 9 months to submit your accounts, you've got 12 months to submit your CT return. Hence at the point of submitting your accounts you could quite legally not yet have finalised your CT figures, so just using an estimate.

In the following year you'll have a small overprovision of CT going through the P&L CT code, to offset the fact that what you actually paid will be slightly lower than the CT liability in the last year's (ie the ones you're doing now) accounts.

Also...it's £8, so nobody except pedants will care anyway.

[FK1]

Discovered we may file simplified micro-accounts (Balance Sheet).
https://ewf.companieshouse.gov.uk//formlist --> Confirmation statement and accounts --> Micro-entity accounts

That screen (from 2013) is different now just could not attach my own screenshot