Dormant company accounts

Dormant company accounts

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I have a limited company client that is no longer trading. I appreciate that, in order to maintain a dormant status, there need to be no significant transactions in the year. Presumably it would be advisable for the company to close its bank account in order to avoid bank charges. Should I invoice the shareholder rather than the company for my annual fees? Should the Annual Return fee be paid privately?

I think that I can inform HMRC that the company is dormant and thereby avoid having to file CT Returns for the next 5 years (and then repeat the process). Is that correct?

Many thanks.

Replies (5)

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By bernard michael
20th Jan 2016 14:41

Any transactions mean it's not dormant including bank charges

Thanks (2)
Euan's picture
By Euan MacLennan
20th Jan 2016 14:47

What is the significance of dormant status?

As the company has previously traded, it cannot file form AA02 (DCA) at Companies House, so normal accounts will have to be prepared.  Why is it so difficult to include a P&L including accountancy fees and bank charges - it doesn't have to be filed at Companies House.

Thanks (2)
Universe
By SteveOH
20th Jan 2016 15:28

Thank you

I thought that I had the option to file dormant accounts with Companies House but I see from Euan's reply that I can only file using form AA02 if the company has NEVER traded. I missed that one. So very straightforward accounts it is then.

Thanks (0)
RLI
By lionofludesch
20th Jan 2016 15:35

Dormant

HMRC don't need to know that the company is dormant.  They need to know whether it is trading.

I can never understand the fuss about dormant accounts.  As you say, the accounts will be very straightforward.  They can't take much more time to prepare than dormant accounts. The P and L account can be done  on the back of an envelope.

Thanks (2)
Universe
By SteveOH
20th Jan 2016 16:04

Fair point

You're quite right, Lion. It probably only takes an extra 10 or 15 minutes. Mind you, at my age, every second counts!!!

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