Accounts for Corporation Tax
Discussion
As a limited company, under company law the company MUST prepare full Statutory Accounts in compliance with Schedule 8 of the Companies Act and in compliance with current Financial Reporting Standards (FRS) and Statements of Standard Accounting Practice (SSAP). If the company is large enough, the accounts also need to be audited in compliance with Standard Auditing Statements.
These accounts need to be filed both at Companies House AND with HM Revenue and Customs.
Companies House allows small companies to file a cut down vesrion of the accounts known as Abbreviated Accounts.
HMRC require FULL accounts. They will NOT accept Abbreviated Accounts.
In additions to the accounts, HMRC also require a completed and signed Corporation Tax Return form (CT600) and ALSO a full set of Corporation Tax computations.
The accounts, tax return and computations are usually submitted to the Revenue as a single package.
Under both tax and company law, a limited company is required to keep adequate records of its financial transactions. These records are not set out in statute although basic books, such as Sales Day Books, Purchase Day Bookks, Cash Books, Petty Cash Books, Bank Statements and original vouchers and receipts would be expected to be retained.
The only books actually required to be kept by law are the "Stautory Books" - which means the Memorandum and Aricles of Association of the company, a Share Register and register of charges and the minute book.
These accounts need to be filed both at Companies House AND with HM Revenue and Customs.
Companies House allows small companies to file a cut down vesrion of the accounts known as Abbreviated Accounts.
HMRC require FULL accounts. They will NOT accept Abbreviated Accounts.
In additions to the accounts, HMRC also require a completed and signed Corporation Tax Return form (CT600) and ALSO a full set of Corporation Tax computations.
The accounts, tax return and computations are usually submitted to the Revenue as a single package.
Under both tax and company law, a limited company is required to keep adequate records of its financial transactions. These records are not set out in statute although basic books, such as Sales Day Books, Purchase Day Bookks, Cash Books, Petty Cash Books, Bank Statements and original vouchers and receipts would be expected to be retained.
The only books actually required to be kept by law are the "Stautory Books" - which means the Memorandum and Aricles of Association of the company, a Share Register and register of charges and the minute book.
DCA to companies house is OK.
You don't need to file a "nil" CT600 although we have had challenges from the Inland Revenue (now HMRC although now challenges from them) stating that a return and a computation must be filed.
A little scrap has (thus far) resulted in their acceptance that a Return and Computation is not required.
Suggest dont do it and you'll win the fight.
Phil
You don't need to file a "nil" CT600 although we have had challenges from the Inland Revenue (now HMRC although now challenges from them) stating that a return and a computation must be filed.
A little scrap has (thus far) resulted in their acceptance that a Return and Computation is not required.
Suggest dont do it and you'll win the fight.
Phil
The initials "DCA" in the DCA Form stand for "Dormant Company Accounts". Filling in the DCA form is the same as completing a "Dormant" set of accounts for a Dormant Company (as set out in the Companies Act, Section 249AA1). So, the answer to the question is, yes, accounts do need to be filed for a dormant company but completing the DCA and submitting it to Companies House will satisfy that requirement.
HMRC expect ALL companies to subnit accounts and tax returns, irrespective as to whether the company is trading or not. However, BY CONCESSION, they will accept that a dormant company does not need to submit accounts or tax returns and they will grant an exemption on that basis. HMRC needs to be informed that the company is genuinely dormant and also needs to be informed IMMEDIATELY the company ceases to be dormant.
Dormant means that the company did ABSOLUTELY NOTHING in the year. Merely having an open bank account which attracts interest credits or interest charges or bank charges is sufficient to stop the compnay from being truly dormant.
With the abolition of the Corporation Tax £10,000 Zero Rate band threshold, even £1 of bank interest received will generate a Corporation Tax liability and ensure that the company needs to submit accounts and a tax return to HMRC.
HMRC expect ALL companies to subnit accounts and tax returns, irrespective as to whether the company is trading or not. However, BY CONCESSION, they will accept that a dormant company does not need to submit accounts or tax returns and they will grant an exemption on that basis. HMRC needs to be informed that the company is genuinely dormant and also needs to be informed IMMEDIATELY the company ceases to be dormant.
Dormant means that the company did ABSOLUTELY NOTHING in the year. Merely having an open bank account which attracts interest credits or interest charges or bank charges is sufficient to stop the compnay from being truly dormant.
With the abolition of the Corporation Tax £10,000 Zero Rate band threshold, even £1 of bank interest received will generate a Corporation Tax liability and ensure that the company needs to submit accounts and a tax return to HMRC.
Edited by Eric Mc on Wednesday 31st January 22:17
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