Can a Ltd Company be dormant?
Discussion
Didn't want to hijack the "How to close a limited company" thread so..
Is there a way I can keep my Ltd Company alive, without it costing any money?
Basically I've finished all paid work so no new money will be coming into the company, as I have gone permie.
It is still possible however that I'll go back to contracting in a year or two, so wanted to effectively close the company, with the option of re-opening it in a year or so's time, just in case, in the event that the current company goes belly up.
Is this even possible? I'm guessing it's either trading (& needing end of year accounts requiring payment to my accountant to fill in as I'm rubbish with paperwork) or not, as in closed, whereby someone else could take the Company name off the pile..
Cheers
Is there a way I can keep my Ltd Company alive, without it costing any money?
Basically I've finished all paid work so no new money will be coming into the company, as I have gone permie.
It is still possible however that I'll go back to contracting in a year or two, so wanted to effectively close the company, with the option of re-opening it in a year or so's time, just in case, in the event that the current company goes belly up.
Is this even possible? I'm guessing it's either trading (& needing end of year accounts requiring payment to my accountant to fill in as I'm rubbish with paperwork) or not, as in closed, whereby someone else could take the Company name off the pile..
Cheers
Hi
As stated, as long as the company stays "alive" annual accounts will need to be filed by the normal statutory due deadline. If the company is genuinely dormant, then dormant company accounts can be filed each year. However, dormant means dormant i.e. the company did absolutely nothing at all during the year. If any monies moved in the compoany bank account, such as interest being credited or debited or funds taken out or put in, the company wasn't dormant and proper accounts neeed to be completed and filed.
In addition to the annual accounts, the Companies House annual return will need to be filed each year. If filed electronivclally, the fee for this is £15. If filed on paper, the fee is £30.
You will also need to notify HMRC that the company is no longer generating taxableincome - but only if there is genuinely no income in the year. Interest received on a bank account is taxable income and will generate a Corporation Taxz liability - which will require a set of accounts, a computation and a Corporation Tax return to be submitted.
As stated, as long as the company stays "alive" annual accounts will need to be filed by the normal statutory due deadline. If the company is genuinely dormant, then dormant company accounts can be filed each year. However, dormant means dormant i.e. the company did absolutely nothing at all during the year. If any monies moved in the compoany bank account, such as interest being credited or debited or funds taken out or put in, the company wasn't dormant and proper accounts neeed to be completed and filed.
In addition to the annual accounts, the Companies House annual return will need to be filed each year. If filed electronivclally, the fee for this is £15. If filed on paper, the fee is £30.
You will also need to notify HMRC that the company is no longer generating taxableincome - but only if there is genuinely no income in the year. Interest received on a bank account is taxable income and will generate a Corporation Taxz liability - which will require a set of accounts, a computation and a Corporation Tax return to be submitted.
There is no real mechanism in the UK for registering a business name outside of keeping a limited company of the same name in existence.
If you shut down the business bank account, that should ensure that the company really does become properly dormant and therefore the simpler dormant accounts can be submitted each year. In fact, dormant company accounts can be submitted by simply filling a form in each year. There may even be a facility to do this online these days and you should really need any assistanmce from an accountant to do this so it would essentially cost you nothing. The key thinhg would be to ensure that the filing deadline for the accounts isn't missed as this would cost you a late filing penalty.
The Annual Return form will always need to be done so, if done on-line, you would find that the annual cost of keeping the company in existence in a dormant state may notr exceed £15.
If you shut down the business bank account, that should ensure that the company really does become properly dormant and therefore the simpler dormant accounts can be submitted each year. In fact, dormant company accounts can be submitted by simply filling a form in each year. There may even be a facility to do this online these days and you should really need any assistanmce from an accountant to do this so it would essentially cost you nothing. The key thinhg would be to ensure that the filing deadline for the accounts isn't missed as this would cost you a late filing penalty.
The Annual Return form will always need to be done so, if done on-line, you would find that the annual cost of keeping the company in existence in a dormant state may notr exceed £15.
We had a similar problem last year. We merged the International Institute of Security with the Security Institute, retaining the name of the the latter for operations.
However, the former still has subscription income (which will be trnsferred). Therefore, that has become a dormant company and is likely to cease next year. Part of the reason for following that path was to retain both names (we own intelelctual property in the form of publications and qualifications).
However, the former still has subscription income (which will be trnsferred). Therefore, that has become a dormant company and is likely to cease next year. Part of the reason for following that path was to retain both names (we own intelelctual property in the form of publications and qualifications).
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