Cashback for opening business bank acct = trading income?

Cashback for opening business bank acct =...

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A client has a new company that has not traded in year 1 - however they received £50 cashback for opening a business act with Barclays.  No other income.

Does this count as trading income?  As the cash has not been touched, can the co still file dormant acts?

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By Stuart.thomson
04th Feb 2015 00:53

2 questions

I think you are asking two questions here.

1) Can the company file dormant accounts for the period?

I do not think it can. This is a transaction which is for the company's benefit - both practically and contractually.

2) Is it trading income?

I think on balance it is trading income. I cannot think of anything which makes this specifically and as it is a company I assume its articles permit the usual wide range of activities including this.

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Woolpit Gus
By nutwood
04th Feb 2015 06:00

What is the source of the 'reward'?

I had one of these recently although not a dormant company.  The company's records showed the £50 received as being from Barclays, but when I checked the bank statement it was actually from the formation agents.  In my case the director had paid the formation costs personally so I credited it to DLA.

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By petersaxton
04th Feb 2015 06:10

My view

"Does this count as trading income?"

This is not trading.

"As the cash has not been touched, can the co still file dormant acts?"

It can't file dormant company accounts. It's irrelevant whether the money has been touched. It is a transaction in the company books.

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RLI
By lionofludesch
04th Feb 2015 08:20

Dormant Accounts

If there is only one transaction preventing dormant accounts, surely this isn't a big issue.

How much longer can it take to prepare micro accounts instead of dormant ?

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