Company accounts due for none trading company
Discussion
Hi,
Set up a LTD to handle a project outside of my normal business activities. The company is none trading and has received no income. The company accounts are due shortly, what is the process for a none trading LTD here? I don't have an accountant for this LTD and don't want to involve my accountant from my main business in this as I thought it would be a simple process I could handle myself.
Any advice appreciated - thanks
Set up a LTD to handle a project outside of my normal business activities. The company is none trading and has received no income. The company accounts are due shortly, what is the process for a none trading LTD here? I don't have an accountant for this LTD and don't want to involve my accountant from my main business in this as I thought it would be a simple process I could handle myself.
Any advice appreciated - thanks
Even though the company is "NON-Trading" it will still be required to submit a set of company accounts to Companies House. Failure to do this will result in automatic late filing penalties.
Is the company just "non-trading" or is it actually "dormant"? The two terms are not the same. "Non-trading" means that no BUSINESS transactions went through the company's books and records during its financial year.
"Dormant" means ABSOLUTELY NOTHING went through the books and record during the financial year.
If the company had a bank account and transactions went in and out of the bank account, such as interest received or the odd payment, then the company is not dormant.
Is the company registered for Corporation Tax and, if it is, has HMRC issued a formal notification to the company for it to submit a Corporation Tax return? If it has, then you must also complete and submit the Corporation Tax return ON-LINE only. To do this, you will need Government Gateway pass codes etc.
You may find that the easiest option is to let your accountant handle this company for you. If it is non-trading and/or dormant, I wouldn't expect his fee would be too much.
Is the company just "non-trading" or is it actually "dormant"? The two terms are not the same. "Non-trading" means that no BUSINESS transactions went through the company's books and records during its financial year.
"Dormant" means ABSOLUTELY NOTHING went through the books and record during the financial year.
If the company had a bank account and transactions went in and out of the bank account, such as interest received or the odd payment, then the company is not dormant.
Is the company registered for Corporation Tax and, if it is, has HMRC issued a formal notification to the company for it to submit a Corporation Tax return? If it has, then you must also complete and submit the Corporation Tax return ON-LINE only. To do this, you will need Government Gateway pass codes etc.
You may find that the easiest option is to let your accountant handle this company for you. If it is non-trading and/or dormant, I wouldn't expect his fee would be too much.
If you are registered with their gateway, Companies house has a simple mechanism for submitting annual accounts for truly dormant companies. Demo video below
https://www.youtube.com/watch?v=8UM13GM-cm8
This doesn't cover corporation tax which is another issue.
https://www.youtube.com/watch?v=8UM13GM-cm8
This doesn't cover corporation tax which is another issue.
Edited by anonymous-user on Monday 5th January 10:42
Thanks both.
LTD is none trading - not dormant. Would it be better for me to set this as dormant until a point whereby the project is incurring expense and receiving income?
No bank account, no expenses, no income - can I not just zero off the boxes when I submit via the gateway?
Think the first thing I'm going to do is ensure I have access as I know these codes can be a PITA and the deadline is looming.
LTD is none trading - not dormant. Would it be better for me to set this as dormant until a point whereby the project is incurring expense and receiving income?
No bank account, no expenses, no income - can I not just zero off the boxes when I submit via the gateway?
Think the first thing I'm going to do is ensure I have access as I know these codes can be a PITA and the deadline is looming.
If it's not officially dormant, then you CANNOT avail of the simplified dormant company submission form which replaces the need to submit formal limited company accounts.
What is the situation regarding Corporation tax? You haven't answered my earlier question.
To be honest, If I was your accountant I would not be very happy if you were not trusting me in regard to your business affairs - including not letting me know that you were involved in another company.
By the way, it's not "none-dormant" - it's "NON-dormant".
What is the situation regarding Corporation tax? You haven't answered my earlier question.
To be honest, If I was your accountant I would not be very happy if you were not trusting me in regard to your business affairs - including not letting me know that you were involved in another company.
By the way, it's not "none-dormant" - it's "NON-dormant".
Apologies Eric. I can not recall registering separately for CorpTax. I have received a notification from CH that company accounts are due in Feb in an acceptable format.
I've just tracked down all my codes to access the service I need. There is an option to file dormant company accounts:
This accounts format is only suitable for companies that:
have never traded
are not a subsidiary
the only transaction entered in the accounting records of the company is the issue of subscriber shares
DO NOT use this form if (at the balance sheet date):
the company was a charity
preparing accounts in accordance with International Accounting Standards (IAS)
the company was a community interest company
Companies House will send you an email within 3 hours to confirm receipt of your data. When you have received an email confirming receipt, the data will be processed within 2 working days, you will then be sent a second email to inform you if your data has been accepted or rejected. If your data is rejected the reasons will be included in the email. If you have not received an email confirming receipt within 3 hours please contact the helpdesk.
We tick the above boxes, can I not use this option and submit dormant accounts or will they reject this?
My accountant isn't as hands on as I expect you are with your clients Eric, all it will do it take up time explaining to them why this separate entity exists etc, until it's earning money I don't want to spend time having that chat. I like to keep things as simple as possible with my accountants based upon previous experience.
Appreciate the advice thus far
I've just tracked down all my codes to access the service I need. There is an option to file dormant company accounts:
This accounts format is only suitable for companies that:
have never traded
are not a subsidiary
the only transaction entered in the accounting records of the company is the issue of subscriber shares
DO NOT use this form if (at the balance sheet date):
the company was a charity
preparing accounts in accordance with International Accounting Standards (IAS)
the company was a community interest company
Companies House will send you an email within 3 hours to confirm receipt of your data. When you have received an email confirming receipt, the data will be processed within 2 working days, you will then be sent a second email to inform you if your data has been accepted or rejected. If your data is rejected the reasons will be included in the email. If you have not received an email confirming receipt within 3 hours please contact the helpdesk.
We tick the above boxes, can I not use this option and submit dormant accounts or will they reject this?
My accountant isn't as hands on as I expect you are with your clients Eric, all it will do it take up time explaining to them why this separate entity exists etc, until it's earning money I don't want to spend time having that chat. I like to keep things as simple as possible with my accountants based upon previous experience.
Appreciate the advice thus far
If the ONLY transaction was the issuing of the shares (and the payment into the bank of the cash relating to the shares), then the company is classed as being dormant and you should be able to file the "Dormant Company Accounts" form instead of having to prepare formal accounts.
You can do this on line -
https://www.gov.uk/government/uploads/system/uploa...
You can do this on line -
https://www.gov.uk/government/uploads/system/uploa...
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