Dormant company- small tax refund received

Can I ignore a trivial tax refund and keep my company's dormant status?

Didn't find your answer?

For a company that is dormant, HMRC recently sent a cheque for a tax refund of £7, without explanation but I think because the tax bill was paid before it was due so this represents interest.

Two problems with this: (1) the company no longer has a bank account and so I will need to reopen one to cash the cheque and (2) the company is dormant and I don't want to have to file anything other than dormant accounts.  Technically, I suppose the refund relates to a prior period so how do I account for it?  Should I just ignore the cheque and file accounts showing no movement on company balances for the year?

thanks

Replies (13)

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RLI
By lionofludesch
24th Jul 2018 16:11

If it's been trading, it's not dormant for CH purposes.

File FRS 105 accounts. They're almost the same, anyway.©

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Replying to lionofludesch:
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By mikebeadle
24th Jul 2018 16:57

Thanks. It's not been trading since it became dormant. The tax was paid for the prior period when it was trading.

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Replying to mikebeadle:
RLI
By lionofludesch
24th Jul 2018 17:19

Quote:

Thanks. It's not been trading since it became dormant. The tax was paid for the prior period when it was trading.

For CH purposes - as opposed to HMRC - once it's been trading it can never, ever be dormant.

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Replying to lionofludesch:
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By mikebeadle
24th Jul 2018 18:03

Sure, yes I get that. My question has two parts - tax and filing. No particular objection to filing abbreviated accounts.

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Replying to lionofludesch:
By Ruddles
24th Jul 2018 20:11

Want to re-think that?

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Replying to lionofludesch:
By Ruddles
24th Jul 2018 20:12

Duplicate

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By johngroganjga
24th Jul 2018 17:18

You need to ascertain with greater certainty whether, or to what extent, the £7 is interest - because interest (as opposed to overpaid tax) is taxable in the hands of the company so you will need a tax return as well.

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Replying to johngroganjga:
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By mikebeadle
24th Jul 2018 18:06

Thanks. I'm just wondering if there is a de minimus point her: there would be no tax due on that £7 as it's the only income this company will have.

In practice, what would happen if I just forgot that I had received the cheque?

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RLI
By lionofludesch
24th Jul 2018 17:21

What exactly is your objection to submitting FRS 105 accounts, given that they're pretty much the same as dormant ones in terms of disclosure ?

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By ireallyshouldknowthisbut
24th Jul 2018 18:50

Blimey o rama

DS01

Solves all known issues with pointless dormant companies

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Replying to ireallyshouldknowthisbut:
RLI
By lionofludesch
24th Jul 2018 18:53

Quote:

Blimey o rama

DS01

Solves all known issues with pointless dormant companies

We don't know that it's ready to be struck off yet.

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Replying to lionofludesch:
By ireallyshouldknowthisbut
24th Jul 2018 20:40

I've yet to meet a dormant company that was worth hanging onto.

Complete waste of time, nearly all of the time.

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Replying to ireallyshouldknowthisbut:
By Ruddles
24th Jul 2018 20:54

Nearly, perhaps, but I can think of several, including one particularly important tax, reasons to hold onto a dormant company.

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