- 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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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.
Accounts
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.
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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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.
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.
@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.
Very Apt
@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!!)