Called up share capital not paid

Where it appears

It is item A, the first line, in the statutory balance sheet formats, including the micro-entity format. Companies using the fuller formats can show it within other debtors instead. The same amount is also counted in called up share capital under capital and reserves, so the balance sheet still balances. See how it fits with the other micro-entity balance sheet lines.

Example

XYZ Consulting Ltd was set up with 100 ordinary shares of £1. The director never paid the £100, so the first balance sheet shows £100 as called up share capital not paid and £100 of called up share capital.

Clearing the balance

The shareholder pays the amount into the company’s bank account. From then on, the £100 appears as cash at bank rather than as a debt owed by the shareholder.

Dormant companies

Paying for the subscribers’ shares does not stop a company being dormant. Companies House ignores money paid for shares taken on incorporation when deciding whether a company had significant transactions.