Can a non-trading parent company file dormant acc?

Didn't find your answer?

Hello all

We have a small company which trades, the trading company is owned by a parent company which does not trade at all.

My question is do we have to file consolidated accounts for parent company or can we just file dormant accounts via Companies House webfiling for parent company?

Thanks,

YQ

Replies (8)

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By Truthsayer
14th Feb 2024 11:26

Who prepares the accounts for the trading company? What do they say?

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By Yarn1
14th Feb 2024 11:39

Thank you Truthsayer

I have been told by my accountant that due to small company consolidation is not required but at the same time I have also been told that a consolidation is required due to company structure by another accountant, hence my question here.

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Replying to Yarn1:
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By Tax is always taxing
14th Feb 2024 11:59

Why don't you trust your accountant to know? I would imagine he knows the size and the structure of your business better than anyone on here.

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Replying to Yarn1:
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By David Ex
14th Feb 2024 12:01

Yarn1 wrote:

I have been told by my accountant that due to small company consolidation is not required but at the same time I have also been told that a consolidation is required due to company structure by another accountant, hence my question here.

Have you spoken to your accountant, about the opinion you have sought from another accountant, and asked them to comment?

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By paul.benny
14th Feb 2024 12:04

Per Companies Act 2006 s399 and following, if you qualify as Small company, you are exempt from requirement to prepare group accounts. There are a few exceptions to that.

It's not obvious why the provider of your second opinion would believe you do have to prepare consolidated accounts. Did they explain?

If you are exempt from preparing group accounts, you may well be able to file as dormant . But bear in mind that dormant means no transactions other than filing fees. If there are dividends paid to shareholders or received from Subsid, then Parent is not dormant.

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By DKB-Sheffield
14th Feb 2024 12:08

Your accountant knows the facts... we don't. Did you relay all of those facts to the 'other accountant'? The facts are pertitent and will lead to the answer.

OOI how big is the trading sub? T/O, NAV, Employees. That should give you the information needed to find some idea of the answers - and question the relevant advisers.

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VAT
By Jason Croke
14th Feb 2024 16:38

When clients shop around for answers that can often lead to confusion...Your proper accountant knows more about the business than another accountant who you might call and ask a question of but may give a different answer because i) you are not their client and they cannot give specific advice so anything they say will be generic and limited in scope and ii) will in no way have the same intimate knowledge of your business in a 15 minute call than your actual accountant.

So of course you'll have different answers, correct answers require detailed understanding of your business and most crucially, payment of a fee to secure that answer, else you'll end up with varying answers based on varying levels of understanding yland go around in circles.

It's that old classic example, the plumber visits and taps a hammer on a pipe and fixes your leak and charges £200, you aren't paying plumber for his time, it's for his knowledge of how to fix things, he knows where to tap the hammer.

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Stepurhan
By stepurhan
14th Feb 2024 22:34

This sounds like a two-company setup, parent and subsidiary.

If that is the case, why keep the parent company at all? It doesn't seem to serve any purpose. If profits from the trading company are being passed up to the ultimate shareholders as dividends, it won't be dormant. If not, then how do the owners benefit from the profits the trading company makes?

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