Company with no profits

Is it exempt from filing CT600's?

Didn't find your answer?

A long standing client has asked us to act for a Limited Company which is acting as a recharge operation, running essentially outsourced payrolls. 

It will always make no profit in the UK, as the exact sum of the payrolls+operating costs are recharged to the customer. 

Whilst returns will be needed for Companies House, can we apply to HMRC to not file CT600's, or is that only available for Flat Management Companies? 

 It wont be much effort if we do file essentially a nil return, but the less work the better.

Replies (3)

Please login or register to join the discussion.

avatar
By Trannysister
05th Sep 2019 12:41

HMRC can "exempt" a company from filing returns by agreement, which they use for mutual trading clubs etc. Write and ask the inspector.

Thanks (0)
avatar
By WhichTyler
05th Sep 2019 13:33

What will they do iuf they change their business strategy (for instance to a cost plus basis) and start making profits (like normal businesses)? or starting another activity

will they pinky promise to ask HMRC to start sending them again?

Thanks (0)
Replying to WhichTyler:
By ireallyshouldknowthisbut
05th Sep 2019 13:50

That wouldn't happen in this scenario, but in such a circumstance clearly the business would need to make returns.

Thanks (0)