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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If it's been trading, it's not dormant for CH purposes.
File FRS 105 accounts. They're almost the same, anyway.©
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.
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.
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 ?
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.
I've yet to meet a dormant company that was worth hanging onto.
Complete waste of time, nearly all of the time.
Nearly, perhaps, but I can think of several, including one particularly important tax, reasons to hold onto a dormant company.