What do I need to do if I haven't used my company?
Laura Arbuckle • October 25, 2019
Following on from last week's blog, the one situation when it's not too difficult to prepare your own limited company accounts is when your company hasn't yet traded and you can therefore file “dormant accounts”.
However, just to make life more interesting, the definition of a dormant company is subtly different between Companies House and HMRC. Companies House allow you to submit dormant accounts if you have no significant transactions during the period whereas HMRC consider your company to be dormant if the company is not trading.
How do I file my dormant accounts with Companies House?
You can simply log on to the Companies House website and fill out the information to complete dormant accounts. Generally, your dormant accounts will simply show your share capital and either your bank account with the share capital in it or a current liability showing that the shareholders have yet to pay the share capital into the company.
You need your company authentication code to be able to submit your accounts online. If you don’t have one, you can ask Companies House to send it out to your registered office address by working through the steps here.
Do I need to send a tax return for my dormant company to HMRC?
Don’t forget that HMRC may still be expecting you to do a tax return.
If your company hasn't traded in the financial year you don't usually need to send in a return but you MUST speak to HMRC and make sure that they are aware that your company is not trading. They will confirm whether or not they require you to send them a return. They may need you to send a nil return if you have already been asked to for one.
You can call them on the Corporation Tax helpline, details here. You will need your company UTR number to hand, which you should be able to find on any HMRC correspondence.
What else do I need to do for my dormant company?
The last thing you will need to remember to do each year is complete your annual return on the Companies House website. This is a simple confirmation of all of the administrative details for your company and your annual fee of £13 is due at the same time.
How do I get rid of a company I no longer need?
If you no longer need your company, take a look at my striking off blog here
for instructions as to how to close down the company. Otherwise, make sure you remember all the steps above to avoid penalties from both HMRC and Companies House.
If you are unsure about any of the requirements, please get in touch by clicking one of the buttons below. Armet Accounting offers a simple dormant account filing service for a small fee.
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