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Is it possible to account for expenses incurred while the company had filed dormant accounts?

hello

the company was incorporated in august 2007 and was dormant for 2 years.  although dormant account where filed in august 2009 and august 2010 there were some costs incurred but no income though. can any of these costs go into the current accounts for august 2010 - august 2011?

the costs include;

  • business related travel expenses namely planes, trains, cabs and petrol
  • internet hosting expenses
  • registered office service
  • mobile phone
  • printing and postage
  • business entertainment expenses
  • equipment namely laptops and other technology materials
  • consultancy expenses

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28th May 2012 12:14

Surely it was trading (albeit loss making) and not dormant in the period. Why were dormant accounts filed?

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28th May 2012 14:59

due to bad advice it sounds like
that is what we were told to do at the time if we were not sure what expenses had been incurred.

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28th May 2012 16:05

Agree

The company was making transactions ergo it was not dormant.

You are in breach of Companies House rules.

Perhaps you should get legal advice as to what is the best thing to do now, including whether to sue the person who gave you the wrong advice.

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28th May 2012 17:28

what fun

thank you all; for confirming our suspicions. we will proceed as advised.

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You can submit amending accounts

Hi - although company law has been broken, it's not a capital offence and you can merely submit "amending accounts" to replace the original dormant versions, see guidance.

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By BKD
29th May 2012 08:18

From a tax perspective

You may be able to argue that the expenditure was pre-trading expenditure, ie incurred in getting the company ready to trade - and therefore claimable in the first 'live' period. But that is without knowing the exact nature of the expenses (and what was being done as regards income generation). But I agree with the above - for Companies House purposes, the company clearly wasn't dormant.

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