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Dormant company account run from non business acc

Hi All, 

Think i've had a spot of bad avice from my accountant, my company became dornmat in 2015-2016, In June 2016 I closed my business account and transfered the remaining funds into a serparate account into my name - not the business name, my accountant said this was ok as the account was dornmant, he created my year dornmant end account for 2016-2017 but now year end 2018, he saying there is no money in the business as the account was closed, so will do a return of zero. Problem being my self assesment for 2016-2017 doesnt account for divdended payments for the amount withdrawn from the company - to redo would mean a 30% fine plus interest and the money has just been sitting there in a seperate account! Question is can a ltd company be run from a non business account, I've got records of all transactions - rougly three a year, and should my accountant create end of year accounts on that account? Thanks very much. 

 

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13th Dec 2018 18:06

who completed the 2016 17 self assessment return?
are you sure that the money transferred was a dividend?

you can use a non business account tho its highly inadvisable.

Go back to your accountant he should know what to do

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13th Dec 2018 18:05

Are you saying the company has entered into 3 transactions per year since June 2016? If so it's possibly not dormant.
What was the nature of these transactions?

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13th Dec 2018 20:05

I completed the 2016-2017 self assessment, I didn't treat the money from the closed business as a dividend as I created a new account - it just happened to be in my own name, the transactions are for my accountancy fees and I was taking a dividend out - so two a year.

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13th Dec 2018 20:35

Certainly the company is not dormant if it's been paying dividends. If the accountant was aware of the dividends then he should not have been filing dormant accounts. If you did not tell the accountant that you had been paying dividends then you can hardly blame him for not knowing. Assuming, of course, that the dividends were in fact dividends. Go back to the accountant, appraise him of the facts and follow his advice.

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to Tim Vane
13th Dec 2018 20:41

yup the accountant knew, i've been following his advice which seems to change on the spot.I've got myself into a bit of a pickle with him.

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13th Dec 2018 21:28

Thanks for your help think Im going to have to pay the penalties, its frustrating as I'm not an accountant and have paid someone for affectively bad advice, ultimately its my own responsibility.

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By Matrix
to Hunter2000
13th Dec 2018 23:46

I don’t really understand, you say you declared dividends but you didn’t put them on the tax return you prepared because the money was already in your bank account? How does the preparation of dormant accounts and your accountant’s view on this affect your tax return?

Had you actually taken dividends or just taken the money as a Director loan which you can now clear with a dividend?

Why are you keeping the company and paying fees to an adviser you don’t trust? Why didn’t you close it and claim capital treatment?

By the way, whether you filed dormant accounts or not doesn’t matter in my view since, if it was not trading, no tax return would have been due. If the accounts say that the company did not trade in the year then this is not incorrect.

I have a client with a company in a legal case and we file the same balance sheet each year and he pays my fees out of his own pocket.

Finally, why are there penalties?

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14th Dec 2018 08:48

Another dormant company query !!

I'm struggling to reconcile some of the information the OP gives. He implies that the original transfer of funds was a dividend but later says that the three transactions a year include a dividend which he didn't put on his return because he'd received the money earlier.

The first port of call is to establish what exactly happened.

Also, the OP should note that HMRC have a different interpretation of "dormant" to Companies House. This company is dormant for HMRC purposes but not for Companies House.

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14th Dec 2018 10:31

Did you sign the dormant accounts filed at @ Cos House or agree that they should be submitted ??

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