The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Pre Incorporation Expenses
Post Info TOPIC: Pre Incorporation Expenses
Wella


Expert

Status: Offline
Posts: 2256
Date:
Pre Incorporation Expenses
Permalink  

Hi guys

Yet another Ltd Co question

Any ideas how to post expenses incured before the official financial year start.

It is a new Ltd Co that was incorporated on 26/06/09. HMRC have set the year end date at 30/06/10 effectively 12months and 1 week.

If you set the financial year start date in Sage to 01 July, it doesn't like entries pre dating that.

I had thought about entering opening balances in the appropriate accounts but not sure if HMRC would approve for CT purposes. (fortunately it isn't a vast amount, just the costs of incorporation and a couple of fuel expenses)

As usual, all input gratefully received.

Bill


__________________

 

 
Sue T


Veteran Member

Status: Offline
Posts: 94
Date:
Permalink  

Hi Bill

As long as there is paperwork to back up the opening journal entries I shouldn't think it should be a problem with HMRC.

Sue

__________________
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

Hi Bill,

Yearend date is always 12 months from the end of the month of incorporation unless you change the year end date.

I always post these transactions at the 1st of the following month to get round Sage. Unfortunately sage can only worki in calendar months so theer is no alternative that I can see.

__________________
Rob
www.accounts-solutions.com
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:
Permalink  

Hi Bill,

Put the costs through for the opening week as though they had happened then.

They're not really opening balances as they're fresh transactions.

Most times with mileage it's a couple of months later before I put my own through anyway.

Don't forget to get your client to keep a mileage log for business miles.

I think that Robs there or there abouts methodology is rubbing off on my purist mentality!

Hope that this helps,

Shaun.

__________________

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.
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

Shaun it will be on my grave stone! Actually that will probably say'Rob's body lies here...or hereabouts'

__________________
Rob
www.accounts-solutions.com
Wella


Expert

Status: Offline
Posts: 2256
Date:
Permalink  

Thanks everyone.

This working lark is really inconvenient, it's interrupting my forum time!!

Shaun, it gets a bit complicated with the fuel, as he is not reliable enough to log his mileage everyday, so for this and the other reasons, he is going to transfer ownership to the company (as previous posted). He did tell me it was only used for work but confessed that it does get used for private use too. I have explained that will incure a personal tax liability of a benefit (£3000 Van + £500 flat rate for fuel, if I understood HMRC website correctly). It still works better in his favour. Anyway that a problem for another day.

How are the Amigos? I see we have recruited an Amiga to the ranks

Bill

__________________

 

 
Shamus


Forum Moderator & Expert

Status: Offline
Posts: 11981
Date:
Permalink  

Hi Bill,

I'm good cheers.

Not been on here for most of the day myself.

Now Peters home from school all the other parents think that it's fine to let their children come to his house to give them a rest with no consideration for the fact I'm trying to work!

So, figured I might as well log on here and check my fan mail whilst watching him through the window.

Glad I did as enjoyed Debbies VAT question.

Actually, on your point I think that minimal private use of a van (as opposed to a car) is allowable. If I get chance I'll check it later and post more details.

Talk in a bit,

Shaun.



__________________

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.
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

I seem to recall the rules on personal use of van being if the usage is incidental then it's fine. I think they give an example of taking an old matress to the tip. It would save a few quid and would be perceived as excellent advice from you Bill. Just tell him always to have an old matress in the back in case one of her Majesty's inspectors pull him over!

__________________
Rob
www.accounts-solutions.com
lor


Guru

Status: Offline
Posts: 941
Date:
Permalink  

RobH I like your there or there abouts attitude! thumbs up from me!

__________________
RobH


Expert

Status: Offline
Posts: 1963
Date:
Permalink  

Another convert! Welcome to the dark side Lorraine! I'm off home now so have a good weekend. Rob

__________________
Rob
www.accounts-solutions.com
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Pre Incorporation Expenses
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About