Dormant company CT600 non-filing penalties

Dormant company CT600 non-filing penalties

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Two dormant companies which have never traded.

Dormant accounts filed on time at Cos House.

Previously HMRC would pick up on this and send out a letter saying we believe you are not trading so no CT600 needed. They now are raising £100 penalty notices and insisting on nil CT600's being filed. Two penalties because HMRC have these mad opening periods one of which is 365 days and the other is the surplus. Also had to write in and appeal penalties enclosing a copy of the dormant accounts. First appeal has been successful.

Anyone else experiencing similar? Is this a change of policy?

Replies (6)

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By Ruddles
26th Jun 2017 15:42

In order to charge penalties, HMRC must have issued a Notice to Deliver. Was this ignored?

And are you saying that HMRC have accepted an appeal in respect of only one of the accounting periods and are pursuing the other?

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Replying to Ruddles:
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By mumpin
26th Jun 2017 16:19

No, they have cancelled both penalties. I'm just interested in this change of procedure. They seem to expect nil CT600's to be filed for dormant companies.
In my experience, this is a new thing.

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Replying to mumpin:
By Ruddles
26th Jun 2017 16:41

To be honest, I've never seen a letter from HMRC advising that they consider a company to be non-trading based only on filed accounts. Their default position has, as far as I am aware, always been that a company is active - and required to file returns - unless and until told otherwise.

You didn't answer my question, though - was the CT603 ignored?

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By mumpin
26th Jun 2017 19:53

Difficult to know as I hadnt registered as CT agent for either so any Notice to Deliver would have gone to Client and I wouldnt have been copied in.
I guess I'd better start filing nil CT600's for all dormant cos.

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Replying to mumpin:
By Ruddles
26th Jun 2017 21:01

Or you could, as I do, ask HMRC to confirm that no return is required while the company remains dormant.

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Jennifer Adams
By Jennifer Adams
27th Jun 2017 17:08

If it is a dormant company then HMRC will not be interested in the submission of accounts but they have to be informed. So when a company becomes dormant I always send a letter telling them and saying that this will be the position for the future and I will, of course prepare accounts and submit should the situation change. They then make a note on their files BUT they also usually check every 5 years by sending a notice.
Re the year end dates - I always always shorten my clients years e.g set up 5 March they would normally expect 31 March accounts. I always make the first period from 5 march to 28 Feb and then this problem of 2 penalties wont arise.

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