I have already made my first year's accounts and Corporation Tax submission to HMRC (online using 'the Gateway') and completely messed it up ending up paying too much tax. (Yes, I know... "If I had paid an accountant in the first place I probably would have ended up paying less overall". Fair enough but it's too late now). My only excuse for this daft error was that - as ever - I left it all until the last minute, got in a tizzy and... well, there it is.
I am also aware (having read many similar forums) that there are lots of other directors in the same boat as me, starting out with relatively simple affairs - complicated only by the transition from 'hobby' to business - who would welcome saving several hundred pounds DIY'ing their accounts - initially at least.
I have taken my tale of woe to at least one other accounting forum and have been persuaded to at least try VT Cashbook (VTCB) as a free app to prepare my first years accounts, second time around. I spoke to HMRC and they have confirmed it is not the end of the world and that I can re-submit the accounts using the 'gateway' but before I do I want to make a proper job of it.
It is my intention (having spent the best part of a week getting to where I am now with my understanding of it all - time-consuming but worth the effort) and I have installed VTCB on my iMac (using a Windows emulator) and it is up and running.
I was hoping someone could rattle through what it is I need to do to prepare my accounts using VTCB, hopefully by 'simply' combining all the accounting period's sales, costs etc into single figure entries. Is this possible, for starters?
Regards, MW.
-- Edited by martinwinlow on Monday 9th of January 2017 02:56:53 PM
-- Edited by martinwinlow on Monday 9th of January 2017 02:57:56 PM
Hi martin
Sorry but we cannot help you on here - this is a forum for Professional Bookkeepers and Accountants.
Can add a couple of things worth considering though - VT cashbook will NOT aid you preparing Company Accounts. Its just a basic cash book program. You need the VT final accounts module. Plus possibly the VT Trans+ for the bookkeeping side of it, unless of course you use some other bookkeeping software (which Im presuming you dont!)
You will need to know under what accounting standards you are presenting your accounts (absolutely crucial as there are a pile of changes afoot and a decision now that is incorrect could make things very expensive later) plus all about accrual accounting and about prepayments/accruals/deferred income etc to ensure that what you have in the accounts is correct. Plus then there is the non allowable expenses adjustments and the capital allowance adjustments.
Its never too later to get someone to do the job properly for you.
Plus what they could save you in tax (never mind fines for errors) will more than save what you will save by doing it yourself.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Just out of curiosity, how do you know you've paid too much tax? Assuming you used the computation section, it would assess tax based on the figures entered. Presumably you will have used some sort of software (even if just a spreadsheet) to get your accounts ready in the first place?
At the very least you need VT Transaction + (Cashbook is a stripped down version of this but won't help with preparing final accounts) Not sure VT accounts will help as you still need filing software (although you can use the figures to enter into the gateway.)
If you go to their website there is a 60 day trial version of both Transaction + and accounts. You use Transaction + to input your figures and do year end adjustments (see Joannes post) the accounts imports that information and prepares a lovely set of accounts and allows you to do the tax computation. It goes without saying that software is very much of an aid, and relies heavily on the user knowing what they're doing.
If you feel out of your depth an accountant will be happy to do the year end for you if you've done the bookkeeping part properly. I know the fees may feel high, but you're paying for their skill and knowledge, which as you've discovered, can actually save you money.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi and thanks to you both for taking the trouble to respond.
I only considered VT as I thought it would suffice for now and was free. If I have to pay for an app, I'll pick something else as I have a Mac and running VT is a bit of a pain.
I have been keeping a pretty good record of sales on an Excel spreadsheet - unfortunately I haven't done the same for purchases thinking that downloading the statements from my PayPal and bank accounts would suffice. It doesn't.
"...this is a forum for Professional Bookkeepers and Accountants." Fair enough.
"...how do you know you've paid too much tax?" I have re-done my accounts from what I have learned recently and my 'profit before tax' is somewhat smaller than what it was on my first application (when I hadn't a clue what I was doing - as opposed to now when I know only enough to be dangerous!) But if you are interested this is a link to my other forum activity... www.ukbusinessforums.co.uk/threads/help-with-hmrc-online-accounts-submission.368286/
(Exits, stage left, with tail firmly between legs.)
-- Edited by martinwinlow on Monday 9th of January 2017 06:04:29 PM
-- Edited by martinwinlow on Monday 9th of January 2017 06:06:24 PM
VT is not an app. Excel is absolutely fine to use and better than most 'apps'
Only scan read your 'other forum' Qs and the As - lots pop out as issues, some mentioned, some not even covered.
Renting out your property to your Limited - very problematic and costly in the long run!!!!!! Use of home includes items it shouldnt!
It takes upwards of 10 years to become a Chartered Accountant, slightly less to become an Accounting Technician - the advice to get someone in who really knows what they are doing will save you money than they will cost at seeing some of those comments - can you really afford not to. Better than using duff info, facing an investigation further down the line and ending up with a big fat fine and penalties (or worse, being struck off as a Director).
-- Edited by Cheshire on Monday 9th of January 2017 06:30:17 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Think that I would buy a PC rather than move away from VT. If your hardware cant run the best software then get better hardware.
Also, you state corporation tax so its obvious that you are limited. VT Cashbook is (as John says) the wrong software, you need VT Accounts which comes with VT Transaction+ thrown in. VT Cashbook is literally that, a cashbook intended for end users to enter stuff to give to the accountant who will import it VT Transaction+ and from there into VT Accounts. Think of the difference between VT Accounts and VT cashbook as the difference between a BMW M3 and a pair of rollerskates and you are about on the right track.
VT Accounts will cost you a very reasonable 200 per year.... The knowledge to be able to prepare accounts and tax returns properly will (as indicated by Joanne) cost considerably more.
Save yourself time and money and get a good accountant to sort you out as the Gazette is litterered with first year start ups who tried to save a few bob.
As the old ICAEW advert says "Its easier to sleep with a Chartered Accountant" (meaning that you're not staying awake all night worrying rather than we're all tarts... Well ok, some of us are but thats a whole different conversation).
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Shaun
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.
"...how do you know you've paid too much tax?" I have re-done my accounts from what I have learned recently and my 'profit before tax' is somewhat smaller than what it was on my first application (when I hadn't a clue what I was doing - as opposed to now when I know only enough to be dangerous!) But if you are interested this is a link to my other forum activity... www.ukbusinessforums.co.uk/threads/help-with-hmrc-online-accounts-submission.368286/
That's a good thread, and helps me understand the situation better. Sounds like it's been a bit of a culture shock for you. Just one piece of advice based on that thread. You said that adding the closing stock figure will increase the loss, actually it will reduce it eg 20k stock, 8 k still in hand will record £12k stock purchases
Right, I'm going to upset my bkn colleagues here and suggest Capium. It's free and it's web based, so will run on the mac.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
