the period of accounts required by ch is 09 nov 2010 to 30 nov 2011, and they are still active on ch website, so all income after 30 nov 2011 will be on next return and accounts I gather, from what I understand. Even if they close company, otherwise wouldn't it be a bit dodgy to run it through now so no tax is paid?. Because as far as I am concerned there is no evidence to say its closed, so what if they dont bother to close it at all??
-- Edited by lor on Tuesday 31st of July 2012 02:41:44 PM
Sorry, hard to know what to put as the title lol, I will explain.
I have a Ltd comp client, new one, they started the co in nov 2010, then it ceased in april 2012.
I have done the accounts and calc the tax payable - for the period from Nov 2010 to 12 months.
But the client has said "we don't have any money to pay the tax and the business has now closed, can I put through all the expenses to april 2012 and also all income to april 2012,
I personally think not!, please something correct me if I am wrong. As the income and expenses would be in the next set of accounts and tax return, even though I believe they have said that they are setting up a partnership from april 2012. But the company is an entity in it's own rights, as we know.
Think I've just answered the question myself, but just wanted some reassurance really.
If the company has been wound up and dissolved then nothing can be done.
Thought would be surprised if it has as would have expected HMRC to have put in an objection until they received a tax return for the company.
If the company has ceased trading but is still active according to companies house then the company is still liable to settle it debt with HMRC and still able to put through the other income and expenditure. Will depend on what period accounts are due to be submitted to Companies House for.
If the company has ceased trading then the easiest thing to do would be a long period from 09 nov 2010 to whenever in april 2012 (as you can extend an accounting period up to 18 months).
They would then need to do a company tax returns for the period (probably 2 returns from 09 nov 2010 to 08 nov 2011 then 09 nov 2011 to whenever in apr 2012). The company would then be liable for any CT on the profits.
If they dont close the company then the company will still be due to submit company tax returns, annual accounts and annual tax returns. Penalties can attach to directors personally if these arent done.
Ok, I will have the client confirm that they have definitely closed the business and informed both hmrc and ch, and if so do a long period accounts and tax return. Thanks for your help!
1. Notify CH about the long period. You need to submit a form extending the period end
2. Complete and submit the accounts and tax returns.
3. Settle all creditors
4. Ensure all assets are removed from company
5. Submit wind up form to CH and notify all shareholders/directors and HMRC. Unless HMRC debt is settled they will probably object to wind up.
Regards
MarkS
will doing this change the amount of time ch expect the accounts to be done by as currently expected by 8th aug 2012. don't want to leave till last min!
-- Edited by lor on Wednesday 1st of August 2012 10:02:14 AM
