Can I go dormant if I had expenses

Can I go dormant if I had expenses

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I am taking a permanent job abroad so I will probably not freelance and need my company for a while. My company has not traded in its current financial year yet, however I have been taking out PAYE salary.
  • Can I make my company dormant in this case?
  • If so, who do I need to notify of its dormant status?
 
 

Replies (11)

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By cheekychappy
21st Jul 2015 12:52

A company that has paid wages is not dormant.

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By johngroganjga
21st Jul 2015 12:56

... until after the end of the last period in which it did so.

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By johngroganjga
21st Jul 2015 13:01

If you want to keep the company alive you will have to keep its accounts and annual returns up to date at Companies House. If you have told HMRC that the company is in business you will need to submit the next accounts to them with a CT return. Then tell them that the company is expected to be dormant going forward. Close the PAYE scheme when you have issued yourself with a P45 and made the last RTI returns.

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Replying to brumsub:
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By crocodile
21st Jul 2015 13:10

Thanks

So am I expected to complete my accounting for the current financial year as usual, with my expenses(including my PAYE pay) but without any incoming revenues?

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Replying to DJKL:
By johngroganjga
21st Jul 2015 13:45

Accounts

crocodile wrote:

So am I expected to complete my accounting for the current financial year as usual, with my expenses(including my PAYE pay) but without any incoming revenues?

Yes - as I said if you want to keep your company it will need to prepare and file its accounts every year. In any year in which it had transactions the accounts will show those transactions. In any year in which it has no transactions it will be dormant, but will still need to prepare and file accounts for that year.

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By Tim Vane
21st Jul 2015 13:14

Yes, of course. What else did you think? If you are paying salaries with no income then your company is making a loss, but that does not mean it is dormant.

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By ireallyshouldknowthisbut
21st Jul 2015 13:25

.

On the plus side, your accountant should be able to 'pay their way' by simply carrying back the loss in the current financial year to the prior period (assuming profits) and claiming a corporation tax rebate. 

And then closing the whole thing down. 

That is to say if you do it by the book you may actually be up financially, as opposed to shutting it down, crossing your fingers and hoping for the best which may not end too well.

Of course I don't know the figures involved or if a loss relief claim would be valid.

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By johngroganjga
21st Jul 2015 13:41

But the OP says he wants to keep the company not close it down.

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RLI
By lionofludesch
21st Jul 2015 13:45

Fuss

Again - another big fuss over being dormant.

Just file abbreviated accounts.  If there are only a few transactions, it can't be that much harder.

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By ireallyshouldknowthisbut
21st Jul 2015 13:49

@john.  Missed that, albeit

@john.  Missed that, albeit if the OP gets some proper advice they will no doubt tell them to 'get rid'.  i would, or as you say they will need to file proper dormant accountants not just the quick form.  

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Replying to mbee1:
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By bernard michael
22nd Jul 2015 10:05

Very Apt

ireallyshouldknowthisbut wrote:

@john.  Missed that, albeit if the OP gets some proper advice they will no doubt tell them to 'get rid'.  i would, or as you say they will need to file proper dormant accountants not just the quick form.  

 

I've often thought that some accountants would be better dormant (inc possibly me!!)

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