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CT600 required for a dormant company?

I have client who has a company for which we completed a dormant set of accounts as the company has not traded for the financial year under review. I’ve heard that all you need to do is ring the tax office & inform them that company was dormant & that will negate the need to file a CT600 on behalf of the company that was dormant.   

However as I am not sure about this, do we need to file a CT600 for a company that was dormant?

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29th Nov 2012 13:59

No you don't

But if HMRC don't know the company was dormant you will get an automatic penalty to appeal against. Sometimes is it just easier to file a nil return than deal with consequential hassle.

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30th Nov 2012 00:14

Good god!

Mouse007 wrote:

Sometimes is it just easier to file a nil return than deal with consequential hassle.

Old Greying Accountant wrote:

In the time you've been writing your posts here ...  

... you could have produced and filed a nil CT600!

time? less than 5 minutes! Stop flapping about and just do it.

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By Ruddles
29th Nov 2012 14:22

And ...

... apparently HMRC are changing their stance as regards such penalties. Whereas in the past they would have been quick to cancel a penalty in cases of dormancy, the position now (or coming) is that if a Notice to Deliver is issued and agreement not to submit is not reached by the filing deadline then any penalty for non-compliance with the Notice is going to stick.

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29th Nov 2012 17:27

Ok...But what if....

Thank you all for your response. Now in addition to the above, you know that unlike a self assessment return for individuals where in you can check on the HMRC website & see whether the client has been issued a tax return or not, this is not the case for a company. So checking the HMRC website does not show if the company has been issued a notice to complete a tax return. The problem is, if we have to file in the CT600 for the dormant company this will push up the cost up as well for which the client may not be happy to pay. So would it be an idea to ring the tax office or alternatively send them a letter explaining that the company was dormant & so does not need to file a CT return? Are there any other options of informing the tax office of this situation? 

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By BKD
29th Nov 2012 18:56

Notice to Deliver

If HMRC's records show the return period as being live, you can be pretty sure they've issued a Notice to Deliver. Any periods for which HMRC don't want a return will be either marked as superseded or non-existent.

Best thing to do is put it in writing, asking them to confirm that no return is required for a particular period and for all subsequent periods whilst it remains dormant.

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By Old Greying Accountant
29th Nov 2012 19:55

In the time you've been writing your posts here ...

... you could have produced and filed a nil CT600!

If you want the client's goodwill I would have done this, if you don't bill them full whack and hope they go away!

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29th Nov 2012 20:04

CT600 required for a dormant company

see the link

http://www.hmrc.gov.uk/news/dormat-co-active-ct.htm 

 

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By Old Greying Accountant
29th Nov 2012 20:11

Isn't that ...

R DODHIA wrote:

see the link

http://www.hmrc.gov.uk/news/dormat-co-active-ct.htm 

... the wrong end of the stick?

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By BKD
29th Nov 2012 20:43

OGA - I'd say ...

... that it's the end of the wrong stick

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By Old Greying Accountant
29th Nov 2012 20:53

BKD ...

... I defer to your superior wisdom :o)

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By JAADAMS
02nd Dec 2012 14:27

I wrote an article on the subject of Dormant Companies...

... which tells you what needs to be done.

See this link

http://www.accountingweb.co.uk/article/dormant-companies-get-details-right/520788 

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