Hi, hoping someone can help please as have not been able to find clear guidance elsewhere - apologies if I have missed an obvious source.
(New) client is a company limited by guarantee, formed 5 years ago (to own a freehold) and no trading activitiy until recently. They have recently started to receive a small trading income and now need to file a tax return. Director insists he has never received a CT603 (notice to file tax reutrn) or had correspondence to or from HMRC to confirm the company is dormant and did not need to file a tax return. Director has not informed HMRC that the company has started trading.
a) Can this be correct? My understanding it the only difference for accounts and tax between a company ltd by guarantee and a company ltd by shares is simply that - both have members, but a company limited by guaranteee has no shares, instead members provide a guarantee of their liability to the company, often £1. Otherwise the regulatory and compliance framework is the same, and so as a matter of course, HMRC will have sent a CT603 to the company as part of registration of the company - is my understanding correct please?
b) Director should of course have let HMRC know within 90 days that the company is trading, are there any penalties for not doing so?