Dormant Limited Company - difficult?

Dormant Limited Company - difficult?

Author
Discussion

Piglet

Original Poster:

6,250 posts

255 months

Friday 30th March 2007
quotequote all
I'd like to set up a couple of Limited Co's to protect the trading names (they match domains) and we may well trade through them in the future as the businesses get bigger.

I can deal with setting them up but am unsure what the ongoing requirements are for a dormant co. Am I just letting myself in for vast amounts of paperwork each year?

Eric Mc

122,042 posts

265 months

Friday 30th March 2007
quotequote all
Once a company is set up - it has a legal obligation to submit annual accoiunts to Companies House and also to complete an Annual Return form and submoit that to Companies House. These two obligations remain even if the company is dormant.
Neither tasks are particularly onerous. The dormant account requirement can be fulfilled by preparing Abbreviated Accounts and submitting these OR preparing formal Dormant Comany accounts and submiiting these OR completing a standard Companies House dormant accounts form (Form DCA).

The Revenue assume that once a company is set up it should start submitting accounts, tax computations and tax returns to them each year. However, if the company remains dormant the best thing is to notify the Revenue that the company is set up but obtain a formal dispensation from having to submit accounts and returns to them.

In the last few weeks the Revenue have gone on the rampage regarding the issuing of late filing penalties for non-submission of employer end of year returns. Starngely, many domant companies (which aren't usually registered for PAYE) have been included. It is not clear if this blitz has been carried out in error or whether it was an intentional targetting of all companies who didn't file PAYE end of year returns - whether these companies needed to file these returns or not.

Piglet

Original Poster:

6,250 posts

255 months

Friday 30th March 2007
quotequote all
Thanks for that Eric.

Sounds like I'd be taking on some extra aggro but as long as I keep on top of it and inform the Revenue it shouldn't be too bad.

Cheers

Busamav

2,954 posts

208 months

Tuesday 3rd April 2007
quotequote all
Eric Mc said:

In the last few weeks the Revenue have gone on the rampage regarding the issuing of late filing penalties for non-submission of employer end of year returns. Starngely, many domant companies (which aren't usually registered for PAYE) have been included. It is not clear if this blitz has been carried out in error or whether it was an intentional targetting of all companies who didn't file PAYE end of year returns - whether these companies needed to file these returns or not.


i got a fine through last saturday week .

£900 for non payment of contribtutions on a company that hasnt traded since 1984