A new client of mine came to me and required two years of company accounts to be prepared. Once these were done and filled he received an unexpected tax bill for a year in which he believed the company was dormant.
Upon checking companies house I can see a dormant set of accounts were filed for that year. And the tax which HMRC state is due, is a determination which was recently made shortly after the accounts we prepared was filed. So it appears HMRC were never informed of the dormant status, and have made a determination of the tax due.
My question is, can I retrospectively inform HMRC the company was dormant during that period and thus remove the liabilities, or do I now need to submit a set of dormant accounts?
My concern is, if I were to submit a set of dormant accounts, the penalties for late filing would still stand, whereas if they had been informed on time, there would have been no requirement to file with HMRC.
Thoughts please? Thank you.