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First Year tax return

17/03/2017 09:52:23
How long as a ltd company do I have to be running before i have to put in a tax return and what period of time?
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First Year tax return

17/03/2017 10:08:37
Hello, please find useful information here:https://www.gov.uk/prepare-file-annual-accounts-for-limited-company
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First Year tax return

17/03/2017 12:17:11
Hello Colin,
If the first link doesn't open please try this one:
https://www.gov.uk/prepare-file-annual-accounts-for-limited-company

Apologies for any inconvenience.
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Re:First Year tax return

17/03/2017 14:30:03
Thanks, very helpful.

Regards
Colin
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Re:First Year tax return

17/05/2017 10:13:25
Hello,
may I have additional question to this one?

https://www.gov.uk/first-company-accounts-and-return

For the first year/period, I need to file two tax returns, as the period would exceed 12 months. This is clear.
In all guidelines HMRC says there should be a tax return submitted for the first 12mo period and the second tax return should cover the rest till accounting reference date. Right?

My question is. Is there a variability to split the period exceeding 12 months? For me, it would be more handy to make the first part shorter.
e.g.. for company set up on January, with accounting reference date on March, I'd prefer to cover first 3 months by the first return and remaining 12 months by the second tax return, rather than covering 12 in the first and 3 in the second.
Is it something I can do?

Best regards
Jan
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First Year tax return

19/05/2017 13:48:22
Hi Jan, I am afraid this reply is not as straightforward.

Corporation Tax (CT) accounting periods (AP) differ from other tax areas, for example VAT, or other government agencies such as Companies House.

A company or organisation's CT AP is normally for a 12 month period and in most cases is the same as their 12 month financial year which begins and ends with the dates covered by the company's annual report and financial accounts as submitted to Companies House.

Occasionally an AP will not be the same as their financial year. For example, if

· their accounts cover a period of more than 12 months, such as if their newly-formed company is preparing its first accounts to cover a period of more than 12 months, or their existing company changes its financial year end
· their company has been dormant and they then start to carry on business activity
An AP cannot be longer than 12 months. A company would be required to file two company returns for two APs, one for 12 months and one for the rest of the time but only one set of accounts needs to be filed at Companies House.

It's difficult to give you a definitive answer and you might benefit from speaking to my colleague on the CT Helpline 0300 200 3410 who will be able to access your records and arrange for the dates/periods to be changed. You can also find further help here,
https://www.gov.uk/corporation-tax-accounting-period

Regards

This message was edited 1 time. Last update was at 19/05/2017 13:48:41

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First Year tax return

30/06/2017 09:23:01
Hello,
I'm submitting my first return but I have a question regarding share capital. The full amount was paid for them when the company was incorporated, giving the company some start up funds so to speak. Do I add this figure to the 'other income' box as it forms part of the balance of the accounts?

Many thanks
Emma
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First Year tax return

04/07/2017 07:42:48
Please bear with us as we need to seek technical guidance for your post.
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First Year tax return

05/07/2017 09:27:00
The amount of share capital wouldn’t be included on the CT return or in the profit and loss part of the accounts as other income as it is not an income as such.

It would however be shown on the balance sheet as part of the capital and reserves. When the balance sheet is prepared, in its very simplest form it should give the result of;

Assets (what the business owns) – Current Liabilities (what the business owes) = Capital and reserves (share capital + profit & loss account + retained profits)

This equation has to balance because everything the firm owns (assets) has to be purchased with something, either a liability or share capital.
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First Year tax return

12/07/2017 18:01:00
How was the money put into the business to buy the shares? Again this reply is unhelpful?
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First Year tax return

16/07/2017 15:45:49
Hello Anonymous,
We both paid money into the business account when we set it up. We're only a very small business, 100 shares at £1 each.
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First Year tax return

17/07/2017 09:58:15
Debit Bank £100, Credit Directors Loan Account £100. Debit Directors Loan Account £100, Credit Share Capital £100. Share Capital is an equity account. Directors Loan account if an "other current liability account.