Management or Unaudited Accounts

[legendfar]

Hi guys
I need to ask a question

My accountant made last six months Management accounts to send for extension , but according to policy guidance
"Businesses that are not required to produce audited accounts must provide unaudited
accounts, sometimes called management accounts"
it looks like Management account and unaudited accounts are same , but accountant saying unaudited must for a year and the statutory requirements they were asking as not liable for unaudited account rather than management account according to ACCA guidelines , so could you please let me know is it ok to send last six months accounts and management account withouth statutory requirements.
if we do 12 months unaudited account , i am sure my company will be loss
please help
thanks in advance

[zimba]

Hi guys
I need to ask a question

My accountant made last six months Management accounts to send for extension , but according to policy guidance
"Businesses that are not required to produce audited accounts must provide unaudited
accounts, sometimes called management accounts"
it looks like Management account and unaudited accounts are same , but accountant saying unaudited must for a year and the statutory requirements they were asking as not liable for unaudited account rather than management account according to ACCA guidelines , so could you please let me know is it ok to send last six months accounts and management account withouth statutory requirements.
if we do 12 months unaudited account , i am sure my company will be loss
please help
thanks in advance

Management accounts are pretty much unaudited accounts but the main difference is they are produced solely for the attention of directors/shareholders and unlike annual accounts, not submitted to HMRC and companies house.

[legendfar]

Hi zimba thanks
that i know my accountant knows as well
but the problem is whether we have to submit management account for last six months (without statutory requirement like The accounts must clearly show the
name of the accountant, The accounts must be prepared and signed off by the accountant
in accordance with statutory requirements.)
My accountant saying these statutory requirement is for unaudited account not management account
and if we submit management account for six months we dont really need to put these dont know confused?

is it ok to submit six months management account?
or do we have to submit unaudited account for last 12months ?
thanks in advance

[zimba]

Hi zimba thanks
that i know my accountant knows as well
but the problem is whether we have to submit management account for last six months (without statutory requirement like The accounts must clearly show the
name of the accountant, The accounts must be prepared and signed off by the accountant
in accordance with statutory requirements.)
My accountant saying these statutory requirement is for unaudited account not management account
and if we submit management account for six months we dont really need to put these dont know confused?

is it ok to submit six months management account?
or do we have to submit unaudited account for last 12months ?
thanks in advance

There is no such a thing as 12 months account. That period depends on your accounting period which for most people happens to be 12 months. You have up to 9 months after the end of your accounting period to submit your accounts (annual accounts)
However for immigration purposes, you accounting period and your visa period do not necessarily match.
HO accepts interim/management accounts too, this means you can prepare interim accounts exactly in the same way as your annual accounts with all the statuary requirements, but you do not submit it to HMRC.
Obviously management accounts do not need these requirements, but you ask your accountant to put them in for HO.

[moongesture]

in order to answer your question can you clarify following,

1) What was the mode of investment?
2) what was the duration of investment?

[legendfar]

Thanks Zimba
thats exactly me and my accountant were thinking to submit six months for management and do as we do annual account with all statutory requirements ....thanks

Hi abdhriz

thanks for your response
answer 1 . I invested as director's loan, money from back home to personal and from personal to business account
answer 2. I started investing in from February 2015 to December 2015 in 12 transactions and my transactions were not round off , it was like £4565, £3556 something like that..
would that be any issue to make management account for 6 months or do as Zimba saying
thanks

[moongesture]

Thanks Zimba
thats exactly me and my accountant were thinking to submit six months for management and do as we do annual account with all statutory requirements ....thanks

Hi abdhriz

thanks for your response
answer 1 . I invested as director's loan, money from back home to personal and from personal to business account
answer 2. I started investing in from February 2015 to December 2015 in 12 transactions and my transactions were not round off , it was like £4565, £3556 something like that..
would that be any issue to make management account for 6 months or do as Zimba saying
thanks

Now keeping in view of that your investment period company accounts should reflect D/L along its period clearly to avoid any confusion (which may including 245D(c)...), so if any annual account was due on or after Feb15 then it will coupled with management accounts.

[legendfar]

Hi Abdhriz
Thanks for your reply
yes my last six months management accounts reflecting D/L £50,000 in the accounts and my accounting period is 1st april to 2015 to 31st of march 2016 and i will submit my case before 31st of march thats the reason i am preparing management accounts for last six months

and i cant see anything in 245D(c)

245DC. Period and conditions of grant
(a) Entry clearance will be granted for a period of 3 years and four months and will be subject to the following conditions:
(i) no recourse to public funds,
(ii) registration with the police, if this is required by paragraph 326 of these Rules, and
(iii) no employment other than working for the business(es) the applicant has established, joined or taken over, but working for such business(es) does not include anything undertaken by the applicant pursuant to a contract of service or apprenticeship, whether express or implied and whether oral or written, with another business, and
(iv) no employment as a professional sportsperson (including as a sports coach).
(v) study subject to the condition set out in Part 15 of these Rules where the applicant is 18 years of age or over at the time their leave is granted, or will be aged 18 before their period of limited leave expires.

[legendfar]

Hi i just read

245DD. Requirements for leave to remain
To qualify for leave to remain as a Tier 1 (Entrepreneur) Migrant under this rule, an applicant must meet the requirements listed below

(i) The applicant must provide a business plan, setting out his proposed business activities in the UK and how he expects to make his business succeed.

do we really need to submit business plan for extensions, i dont think so, so why is it mentioned here

[moongesture]

Hi Abdhriz
Thanks for your reply
yes my last six months management accounts reflecting D/L £50,000 in the accounts and my accounting period is 1st april to 2015 to 31st of march 2016 and i will submit my case before 31st of march thats the reason i am preparing management accounts for last six months

and i cant see anything in 245D(c)

245DC. Period and conditions of grant
(a) Entry clearance will be granted for a period of 3 years and four months and will be subject to the following conditions:
(i) no recourse to public funds,
(ii) registration with the police, if this is required by paragraph 326 of these Rules, and
(iii) no employment other than working for the business(es) the applicant has established, joined or taken over, but working for such business(es) does not include anything undertaken by the applicant pursuant to a contract of service or apprenticeship, whether express or implied and whether oral or written, with another business, and
(iv) no employment as a professional sportsperson (including as a sports coach).
(v) study subject to the condition set out in Part 15 of these Rules where the applicant is 18 years of age or over at the time their leave is granted, or will be aged 18 before their period of limited leave expires.

The refrence was from 6A para245D(c)(ii) Invested’ or ‘spent’ which will link your investment to next assessment. So any duration which covers D/L should cover other mandatory requirements

[legendfar]

Hi Thanks for your reply , i am not really getting your point , so basically i invested as director's loan from feb 15 to december 15 i transferred and i made the director's loan agreement dated 15 february 2015 before i first started andmy accountant made management account for last six months and reflecting £50,000 D/L in there and i will ask him to put all tha statutory requirements as zimba said we need to put in annual account usually but i will ask him to put in this management account , will i be fine with all these details thanks

[moongesture]

Hi Thanks for your reply , i am not really getting your point , so basically i invested as director's loan from feb 15 to december 15 i transferred and i made the director's loan agreement dated 15 february 2015 before i first started andmy accountant made management account for last six months and reflecting £50,000 D/L in there and i will ask him to put all tha statutory requirements as zimba said we need to put in annual account usually but i will ask him to put in this management account , will i be fine with all these details thanks

The point is that, company accounts (Annual + Management Or Management) should cover the entire period in which you Invested & spent D/L.

[legendfar]

Hi abdhriz
thanks for your reply
i invested from february 15 to december 15
and my management accounts for last six months from september 15 to febreuary 16 and in the management account D/L is showing anyway
this should be fine shouldn't?
thanks in advance

[zimba]

Hi i just read

245DD. Requirements for leave to remain
To qualify for leave to remain as a Tier 1 (Entrepreneur) Migrant under this rule, an applicant must meet the requirements listed below

(i) The applicant must provide a business plan, setting out his proposed business activities in the UK and how he expects to make his business succeed.

do we really need to submit business plan for extensions, i dont think so, so why is it mentioned here

It is a requirement which is intended for initial applications. several cases here extended with no business plan.