You do the accounts to 31 March and then apportion for 365/369 and 4/369 for your tax return periods. If you are using software, it will do it for you.
Can anyone suggest suitable software that will do this please? I've purchased Andica but it doesn't and I've attempted to do it manually using HMRC CT600 but then getting confused when it comes to balance sheet. On the attachment I'm pretty sure I can't apportion the balances as per my figures on the left, or can I? I stopped when I saw that the cash in hand would be £1.46 on the second CT600 (Rounded to nearest pound obviously)
Note to Michelle: In no way is this questioning your reply, its's just me getting confused. My previous first year clients I did were short followed by long, and there was no trading in the short bit, so everything went in the long bit, if you get my drift.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
John, sweetie! Contact me through email and I'll sort it with you. Try going through my website via contact page. I want to see if it's still working ok!!
Thanks Michelle, I tried sending from your website but when I clicked send nothing happened, so I sent one direct to your email address as well.
That link looks interesting as well Shaun, thanks. I'm going to have to get to grips with alternative software though in light of the changes coming, so if I can get to grips with Andica I'll be a happy bunny
-- Edited by Leger on Saturday 26th of September 2015 10:54:19 AM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Andica might require you to prepare the main return, and then do the stub return. Sage does it all for me, but it should be simple enough to do it manually.
You will have a main return for the 365 days, and a stub return for the extra 4. All you need is the profit and turnover apportionment for the returns, and your capital allowances will depend on the date the asset was purchased.. hopefully all before 27th March!
You would only send the full IXBRL accounts with the main. The first page will have "making one more than one return for this company now" ticked and also Accounts "for a different period". This return will show the first 365 days as the period.
The first page of the stub return would have "making one more than one return for this company" now ticked, and the info box at the bottom would say "PoA differs from AP-acs with sep return" - the period dates would be the 4 days.
Bharat and Mona are brilliant if you email them. I have never tried calling them, not even sure if they are this country, but they have always been super helpful and very quick to reply.
NOTE: John and I are working on this over email, and will come back with more info once we have sussed it out.. such as computations etc. This is just a quick overview for anyone who is interested!
-- Edited by FoxAccountancyServices on Monday 28th of September 2015 10:52:04 AM
Just to be a bit more clear - apportioned profit is adjusted profit. So after add backs of depreciation and entertaining, plus any bank interest receivable.
Capital allowances will then depend on the date the asset was purchased.
So lets say adjusted profit is £5000
Year to 27.03.15 would be £4946 then you would deduct for any AIA on assets bought up to 27.03.15, as well as any WDA 18% on non AIA assets - and add for any bank interest, using loan relationships - which should be a tab within the software. This gives you taxable profit for the 12 months
Period to 31.03.15 would be £54 less any AIA on assets bought within those few days, and 4 days worth of WDA 18%. This gives you taxable profit for the 4 days.
Andica should allow you to adjust the profit within the software, so that it can do the computations.
Mark - TaxCalc is a tad too expensive for my needs, but thanks
Sharon - I looked at BTC a couple of years ago. Its a bit expensive if you don't have may CT returns ( I only have 4 or 5 a year, but the guy was very helpful and did offer a reduced rate. I wasn't keen on the software (Excel based) but now I have a bit more understanding I nay well look at that one again in the future. It's also got the added benefit of linking with VT accounts (also excel based, which I do like) so I probably didn't give it a goiod enough go at the time.
Phil - Cloud based? Wash your mouth out with soap and water lol. Actually it's fine as I do use some cloud based systems, just not for doing bookkeeping on. Looked at it and it doesn't look bad at all.
We found out that Andica doesn't apportion the accounts, but I was able to do two returns together within the software, and apportion the tax computation accordingly.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
