Should a residential flat management company submit dormant company accounts as it is non trading?
I have taken over the running of a RTM. the company does not own the freehold. the previous person had submitted dormant company accounts and i wondered if this was correct? we (4 flats) each pay service charge to cover insurance and general maintenance and have a small surplus left each year.
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If the insurance premium and maintenance costs are billed to & paid by the company then it is not a dormant company. A dormant company is (basically) a company that has no transactions.
RM
Sorry, it may not be trading but it isn't dormant.
You may well have been right about five years ago when accountants changed their minds but we've changed them back again so that we can look like idiots in front of our clients.
But - that's theorists for you.
As you are not a managing agent member of ARMA, who are required by ARMA to prepare service charge accounts (in accordance with TECH 03/11) together with dormant company accounts, you have the option to prepare ordinary non-dormant statutory accounts for the company.