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nil set of accounts

MarieMarie New MemberRegistered Posts: 14
Hi,

Do a nil set of accounts have to be set out in any particular style or can they just have the company name at the top and then nil besides sales, purchases, etc. I assume if the company didn't trade the balance sheet will also be all nils?

Comments

  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    You could prepare a dormant set of accounts. There is a dormant proforma which can be obtained from companies house.

    Regards

    Steve
  • MarieMarie New Member Registered Posts: 14
    Can they do a dormant set of accounts if they purchased business stationary & office suppliers during last year which they paid for on their own personal visa card.

    They didn't start trading until July this year.

    Thanks
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    No they won't be able to - a dormant set of accounts is strictly for a company that hasn't traded, so the accounts may show minimal amounts but they cannot be prepared on a dormant basis.

    Kind regards
    Steve
  • MarieMarie New Member Registered Posts: 14
    Thanks for the reply.

    Can they not produce a nil set of accounts?

    They don't to produce a set of accounts that will show only £2500 of expenses & no sales?

    Can I also ask another quick question. If they incorporated the company on 15/05/2006. Do they start their accounts from 01/05/2006 or 01/06/2006?

    Thanks
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    They have to produce accounts from when business transactions commenced. So even if the results are nil sales but £2,500 worth of expenses they should still produce financial statements showing a £2,500 loss. Financial reporting standards and companies act requirements overrule directors wishes.

    Financial statements can be produced from either the date of commencement of trade or date of incorporation (for tax purposes it starts from the date of trade i.e. the date the 1st transaction takes place). Note, however, if the first accounting period is more than 12 months you have to file them within 22 months of the date of incorporation, if it 12 months or less you have 10 months and this deadline continues for subsequent years (though for accounting periods beginning on or after 6 April '08 this will reduce to 9 months for all companies).

    Regards
    Steve
  • MarieMarie New Member Registered Posts: 14
    Thanks once again.

    They assumed that they would have to start the financial year from 01/05/2006 but they have told me that they received a letter from companies house asking about accounts for the period 15/05/2006 to 31/05/2007.
    Therefore would I be correct in informing them that their next financial year is 01/06/2007 to 31/05/2008?



    Thanks
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Yes the reporting date would be 31/5 commencing on 1/6.

    They must have incorporated on 15/5/06 for Companies House to be requesting the accounts for 31.5.07. As this is a period LESS than 12 months they should be filed by 31/03/08.

    Regards
    Steve
  • MarieMarie New Member Registered Posts: 14
    Thanks
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    Hi Steve

    Am I correct in saying that this company could have opted to extend their first accounting period end to be 12 months after they actually started to trade ie have a first really long period and then to have gone into the 12 month cycle from the end of year of actual trading?

    This could probably have avoided the need to submit a dormant or loss making set of accounts at the start?

    Poodle
  • peugeotpeugeot Experienced Mentor Registered Posts: 624
    Yes they could have done - you can change your year end dates to suit yourself though you can't extend the year end date so it ends up more than 18 months from the start of the accounting period, nor can you extend it more than once in 5 years.

    Kind regards
    Steve
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