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.
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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.
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.