New Business, end of financial year... - Business Forum UK

Mitev · 12-01-10, 04:18 PM

Hi everybody,

My name is Dimitar and I am new to the forum. However, I've already had a look around and it's great to see how friendly and helpful everybody is!

I'm currently experiencing a bit of a problem (mainly due to lack of knowledge) and any form of help would be greatly appreciated.

So firstly, I'm currently a student in Manchester and last year I registered a company (17th February), which was initially a dormant one (I had filed the necessary form to the HMRC) but then I got approved for a project funded by the EU and decided to roll with it.

The thing about this project is that I am not supposed to earn anything (no salary etc.). After all, I am doing this mainly to improve my CV... Anyway, the project also includes going to different business trips to UK towns and abroad.
Additionally, I'm a sole director. The company is limited by shares. There is a separate business bank account.

So bearing in mind all this, I am facing the fact that the financial year has already ended and I have to file all the accounting information to the respective authorities. Hence, a couple of questions/enquiries:

1. Could anybody either tell me in brief what other authorities I should file my information to (and what kinds of documents exactly - balance sheets, profit/loss etc? ) or just guide me to a place where I can find this kind of information?

2. What is the procedure in the UK (since I'm originally from Bulgaria) for accounting for business trip expenses (travel and subsistence expenses)? I mean, since I am the director and the person who is going to the aforementioned trips, should there be any kind of document/form filled? And is there a maximum to the money that is acceptable by the HMRC as travel and subsistence costs on a business trip? Is there some kind of specific report to be filled?

Again, I would be more than grateful if you could either briefly tell me what the whole procedure is, or just help me find a place where I can read about it. Because I've looked through all kinds of different Acts and laws but couldn't find anything...

3. Am I supposed to pay any kind of taxes since the business is supposed to work without any profit? The only cash inflow was the project funding, which respectively has to be all used as travel expenses for the mobilities/business trips.

I am aware that I am asking way too much but even some initial guidance where to begin from would be exceptionally useful.

Thank you for your time and thanks in advance

Cheers,
Dimitar Mitev

Indizine · 12-01-10, 05:22 PM

If you have registered a Limited Company you wll be liable to pay taxes where due on any profits. A not for profit does not mean you do not have to pay any tax. In any case, a not-for-profit is a different entity, it's limited by guarantee and you can never draw those profits for yourself personally, under any circumstance.

You would have received information from HMRC when you registered, telling you what to do regards paying tax etc. You would have filled in the form that let them know it was dormant from the off but that when it starts trading, that you would inform them of such. In any case, you need to submit your annual return to Companies Hosue which you should have had from them, and your CT600 form for HMRC. If you didnt emply yourself in this company, and drew no wages or dividends, then you dont have to pay any income tax or NI. You still have to keep accounting records for income and expenditure and provide the information to HMRC in the CT600 by the date specificed. And the info to CH by date specified. All this info can be found on both of their websites.