First Year Accounts - Not Yet Traded
Discussion
Can anyone point me to some online resource or advise please? I've searched the .gov.uk site and not found what I'm looking for.
I set up a limited company 12 months ago but HAVEN'T done any trading yet. I've had a letter from HMRC to say my Company Tax Return is due. I'm hoping it will be pretty simple seeing as no money has come in or gone out of the Company since it was set up? I'll have an accountant for when I start trading, but in the meantime hoped to just fill anything in myself.
I've registered on the .gov.uk for online form submission.
I set up a limited company 12 months ago but HAVEN'T done any trading yet. I've had a letter from HMRC to say my Company Tax Return is due. I'm hoping it will be pretty simple seeing as no money has come in or gone out of the Company since it was set up? I'll have an accountant for when I start trading, but in the meantime hoped to just fill anything in myself.
I've registered on the .gov.uk for online form submission.
Once a limited company has been set up, strictly speaking it is required to do the following -
i) prepare a set of accounts covering the first accounting period (date of incorporation to its formal year end date)
ii) submit these accounts to Companies House within a set time limit after the financial period end (there are fines for missing that deadline)
iii) submit a Corporation Tax return for the first period of trade (which may not be exactly the same as the first accounting period) to HMRC together with an accompanying set of accounts and related Corporation Tax computations. There is a fine for failing to submit the Corporation Tax return late
If the company has not traded in its first accounting period, it MAY be able to file simplified accounts to Companies House. Indeed, if it was dormant for the entire accounting period, it can submit a Dormant Accounts form (AA02) to Companies House instead of actual accounts. However, "not trading" is not the same as "being dormant" so whether a form AA02 is appropriate will need to be checked.
As far as HMRC is concerned, if the company genuinely didn't trade during it's first financial accounting period, the best option is to telephone HMRC and tell them that. There should be a telephone number in the letter you mention.
i) prepare a set of accounts covering the first accounting period (date of incorporation to its formal year end date)
ii) submit these accounts to Companies House within a set time limit after the financial period end (there are fines for missing that deadline)
iii) submit a Corporation Tax return for the first period of trade (which may not be exactly the same as the first accounting period) to HMRC together with an accompanying set of accounts and related Corporation Tax computations. There is a fine for failing to submit the Corporation Tax return late
If the company has not traded in its first accounting period, it MAY be able to file simplified accounts to Companies House. Indeed, if it was dormant for the entire accounting period, it can submit a Dormant Accounts form (AA02) to Companies House instead of actual accounts. However, "not trading" is not the same as "being dormant" so whether a form AA02 is appropriate will need to be checked.
As far as HMRC is concerned, if the company genuinely didn't trade during it's first financial accounting period, the best option is to telephone HMRC and tell them that. There should be a telephone number in the letter you mention.
Eric Mc said:
Once a limited company has been set up, strictly speaking it is required to do the following -
i) prepare a set of accounts covering the first accounting period (date of incorporation to its formal year end date)
ii) submit these accounts to Companies House within a set time limit after the financial period end (there are fines for missing that deadline)
iii) submit a Corporation Tax return for the first period of trade (which may not be exactly the same as the first accounting period) to HMRC together with an accompanying set of accounts and related Corporation Tax computations. There is a fine for failing to submit the Corporation Tax return late
If the company has not traded in its first accounting period, it MAY be able to file simplified accounts to Companies House. Indeed, if it was dormant for the entire accounting period, it can submit a Dormant Accounts form (AA02) to Companies House instead of actual accounts. However, "not trading" is not the same as "being dormant" so whether a form AA02 is appropriate will need to be checked.
As far as HMRC is concerned, if the company genuinely didn't trade during it's first financial accounting period, the best option is to telephone HMRC and tell them that. There should be a telephone number in the letter you mention.
Thanks for the replies. The Company is genuinely dormant and hasn't done "anything" yet. It was set up ready for when things get going, so no costs or sales, no profit or loss etc. at all yet.i) prepare a set of accounts covering the first accounting period (date of incorporation to its formal year end date)
ii) submit these accounts to Companies House within a set time limit after the financial period end (there are fines for missing that deadline)
iii) submit a Corporation Tax return for the first period of trade (which may not be exactly the same as the first accounting period) to HMRC together with an accompanying set of accounts and related Corporation Tax computations. There is a fine for failing to submit the Corporation Tax return late
If the company has not traded in its first accounting period, it MAY be able to file simplified accounts to Companies House. Indeed, if it was dormant for the entire accounting period, it can submit a Dormant Accounts form (AA02) to Companies House instead of actual accounts. However, "not trading" is not the same as "being dormant" so whether a form AA02 is appropriate will need to be checked.
As far as HMRC is concerned, if the company genuinely didn't trade during it's first financial accounting period, the best option is to telephone HMRC and tell them that. There should be a telephone number in the letter you mention.
Based on what you've said above (thank you for taking the time to write that) I should submit a form AA02 to Companies House and telephone HMRC to let them know?
What monetary transactions has the company experienced in the first accounting period -
were shares issued to the shareholders?
did the shareholders put the required money into the company bank account?
has the company actually opened a bank account?
if it has have any transactions of any sort been processed through the bank (such as opening deposits from shareholders or directors, bank charges etc) ?
were shares issued to the shareholders?
did the shareholders put the required money into the company bank account?
has the company actually opened a bank account?
if it has have any transactions of any sort been processed through the bank (such as opening deposits from shareholders or directors, bank charges etc) ?
Eric Mc said:
What monetary transactions has the company experienced in the first accounting period -
were shares issued to the shareholders? 1 share for £1 to myself as the sole shareholder
did the shareholders put the required money into the company bank account? No
has the company actually opened a bank account? Yes, but no money has gone through the account, no charges, zero balance since creation
if it has have any transactions of any sort been processed through the bank (such as opening deposits from shareholders or directors, bank charges etc) ? None whatsoever
were shares issued to the shareholders? 1 share for £1 to myself as the sole shareholder
did the shareholders put the required money into the company bank account? No
has the company actually opened a bank account? Yes, but no money has gone through the account, no charges, zero balance since creation
if it has have any transactions of any sort been processed through the bank (such as opening deposits from shareholders or directors, bank charges etc) ? None whatsoever
Eric Mc said:
Sounds pretty dormant to me. You should be able to file an AA02 instead of actual accounts at Companies House.
You need to talk to HMRC though.
My bill is in the post.
Yes, I now have your fees to put through as costs so will need a whole new lot of advice from you You need to talk to HMRC though.
My bill is in the post.
Thank you for your advice.
Eric Mc said:
Sounds pretty dormant to me. You should be able to file an AA02 instead of actual accounts at Companies House.
You need to talk to HMRC though.
My bill is in the post.
gotta' love Eric.You need to talk to HMRC though.
My bill is in the post.
I enjoy many of his financial posts.
I have a company very similar, no transactions in or out.
I just filed simplified accounts with all relevent boxes containing a zero.
Job jobbed.
Online submission is easy.
Gassing Station | Business | Top of Page | What's New | My Stuff