Hi All,
A new client of mine has ceased trading and informed HMRC thus. For the year ending 31/3/17, he did zero trading.
HMRC is fine with no accounts being filed.
Companies House however requires a set of dormant accounts posted and filed
Question: should I post the depreciation for the year? Likewise the debtors need to be written off. All of this will generate a loss in the dormant year.
And if I do all of this, are they classed as significant transactions meaning filing with HMRC and revoking the dormant status?
Thanks in advance
Replies (19)
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You say "Companies House however requires a set of dormant accounts posted and filed" but I think you have included the word "dormant" in error.
Companies House always require accounts. It is for those preparing and filing those accounts to decide what is in them, not for Companies House.
If you are an accountant you will know how to prepare accounts. Whether you need to send them to HMRC depends on what is in them.
Bit shirty with John but yes.
A company is only dormant if it has either no transactions at all, or one of three exempt kind of transactions:
1. Payment of the companies house fee
2. Issue of shares
3. Dividends received and immediately then dividend itself further up the corporate tree
Given it will have bad debts to post and fixed asset depreciation to charge it cannot be dormant.
NOW you should've asked if it was non-trading, which is not the same thing.
I did answer the question, which was that whether you should submit the accounts to HMRC would depend on what was in them - in particular income or gains, or a loss that you want to claim relief for.
What do you need the Company for going forwards?
Apply for it to be struck off and CH requirements disappear?
Some further free “advice”, while you’re in the mood, it “advised” not adviced (sic).
There are some worldly wise members on this forum and, they provide, professional opinion, absolutely free of charge. If you’re unable to demonstrate a modicum of humility, you will receive a suitable response.
On the (scant) information in your OP, there would actually appear to be an advantage to filing with HMRC.
But since you've decided to cop an attitude on a forum where you are getting answers for FREE, I will leave it to you to work out what that is.
Are you sure?
I would have thought cessation of trade in YE 31.3.17 might well lapse any trading losses.
If there are to be unused losses ,and client is intent on trading in the future ,I would likely rather have been looking at ways to possibly argue the trade continued, accordingly I would certainly not even consider "non submssion" to HMRC in such a scenario, it sinks any argument, however poor, I might possibly have had.