Unused limited company end of year

[Supernova190188]

Hello, my wife set up a Ltd company towards end of last year, she was planning on doing it as a bit of a sideline, however due to us expecting out first child soon, nothing ever happened, she just registered the company and that was that, there’s never been any income or expenditure at all.
Do we need to do anything with regards to annual accounts, paperwork wise? Or can we just leave it as is or must the company be registered as dormant.
Thanks.

[Eric Mc]

When are the first accounts due to be prepared and submitted?

Was a company bank account opened and if so, is there any money in it?

[Supernova190188]

I’m sure they are due 31st March. Not opened any company bank account at all. Literally set up company and that was that.

[Eric Mc]

Go on to the Companies House website. Search for your company on the site. The site will tell you -

the financial year end of the company
the date the first set of accounts need to be filed

I am going to PM you.

[Supernova190188]

Had a nos on there.
First accounts made up to July 31st 2020
Due by April 22 2021
Confirmation statement first by 21st July 2020
Due by 4th August 2020

Thanks.

[Eric Mc]

Fine - so now that you know the exact important dates, you can see how much time you have to make a decision.

If you really think the company is never going to be used, the easiest option is to apply to have it struck off. This process can be done on-line through the Companies House website but it will cost you a £10 filing fee.

[2 sMoKiN bArReLs]

Hopefully she didn't register for PAYE? (as she'll be behind with her nil returns)

[Supernova190188]

Well realistically company won’t be used for one year at least at the moment.
PAYE wasn’t applied for so that’s fine.
So maybe need to do confirmation statement and see from there on whether to make company dormant or what not?

[Eric Mc]

You can keep the company in existence indefinitely. As long as it stays in existence, you will need to submit to Companies House a Confirmation Statement every year and a set of accounts every year. The Confirmation Statement always requires a £13 filing fee to be paid to Companies House.

If the company is genuinely dormant (as described under the Companies Act), then, instead of a set of accounts, a special form called an AA02 can be filed at Companies House each year. There is no filing fee for that or for filing accounts.

HMRC may have issued a Corporation Tax reference for the company. If they have, they will be expecting the company to submit accounts and Corporation Tax returns each year. Failure to submit these can result in late filing penalties. If the company has been issued with a Corporation Tax reference, and it is, and remains, dormant, HMRC needs to be contacted to let them know that the company is dormant. They should then issue a waiver to the company removing the need to submit Corporation tax returns.

If the company ever starts trading, then HMRC would need to be contacted again letting them know that it is up and running.