Question - re: Dormant Company Status

[Joe777]

Hello,

Just over a year ago myself and a family member started a Private Company, but since starting it we've never actually traded and we've remained 'Dormant' for the whole time. We mainly setup the company just to reserve the name, in case we ever decided to do anything with it.

A few weeks ago I completed the first AR01 Annual Return online.

I'm just checking the status of the company online (via the search facility on the companies house website), and it's showing us has having a 'Status' of active, but with 'Nature of Business' as being '999 Dormant Company'.

Is the status of 'Active' right, or should it say 'Dormant' (or Inactive)?

I'm slightly concerned because the family member who is classed as the Director seems to have had his Tax Code changed this month, and as a result has just paid 40% tax on his monthly salary for some reason (instead of his usual ~25%). The tax code change might be completely unrelated, but still I'm not sure about the "Status" of "Active" that we seem to have (I'm not sure if it said 'Dormant' before as I've never checked)...

Status: Active
Date of Incorporation: 14/10/2008
Country of Origin: United Kingdom
Company Type: Private Limited Company
Nature of Business (SIC(03)): 9999 - Dormant Company

[MyAccountantOnline]

Thats fine - dont forget you must still send accounts to Companies House for a dormant company.

The tax code change really wont be related to the status of the company at all. This will be something related to the persons tax affairs.

[elainec100@cheapaccounting]

Is the status of 'Active' right, or should it say 'Dormant' (or Inactive)?

It wilsay active as opposed to dissolved etc.

This is correct.

It may be dormant but it is sti an active company which must file accounts, returns etc

I'm slightly concerned because the family member who is classed as the Director seems to have had his Tax Code changed this month, and as a result has just paid 40% tax on his monthly salary for some reason

Sounds like the company has been set up as an employer with the directors as employees.

What this means:

- they class hos main job as a second job and so apply a BR tax code to it
- you need to be aware of the need to file employer returns. A nil return is required and you can be fined £100 for each month that this is late

The director needs to phone / write to his local tax office to say that his job is the main and only job to get his code changed.

You need to be aware of your filing duties for a limited company, here:

http://www.franklyaccounts.co.uk/fivefile.php

The act of saying it is dormant as a SIC code has no bearing on this.

[Joe777]

Sounds like the company has been set up as an employer with the directors as employees.

What this means:

- they class hos main job as a second job and so apply a BR tax code to it
- you need to be aware of the need to file employer returns. A nil return is required and you can be fined £100 for each month that this is late

The director needs to phone / write to his local tax office to say that his job is the main and only job to get his code changed.

Thanks for taking the time to reply.

Q. If the (only) 'Director' is in-fact classed as an employee, do we need to do anything (i.e. fill some form in) which changes that (i.e. so we don't need to file the employer returns)?

[elainec100@cheapaccounting]

As I said you either file a nil return or write to HMRC to tell them there are no employees and to de-register as an employer.

I would always suggest writing not phoning HMRC!!

[Joe777]

As I said you either file a nil return or write to HMRC to tell them there are no employees and to de-register as an employer.

I would always suggest writing not phoning HMRC!!

I just checked with HMRC and we aren't listed as an employer.

The tax-code thing, we've just found-out that it was completely unrelated and actually a mistake by the real employer.

Thanks a lot for the replies anyway, much appreciated :)

[onefortheroad]

Hi.
Sorry but I'm a complete numpty when it comes to business law/accounts or the like.
But I have an interest (non-financial) in a limited company that is listed as : 9999 - dormant company.
Would someone be so kind as to explain the meaning/relevance of the 9999 prefix, please.
Thanks,
Dave

[bbbbb]

Hi.
Sorry but I'm a complete numpty when it comes to business law/accounts or the like.
But I have an interest (non-financial) in a limited company that is listed as : 9999 - dormant company.
Would someone be so kind as to explain the meaning/relevance of the 9999 prefix, please.
Thanks,
Dave
Standard Industry Classification Code - see here (http://www.companieshouse.gov.uk/about/gbhtml/gba2.shtml#sic)

[onefortheroad]

Many thanks for that, bbbbb. It's not as complicated as I thought then.

I don't suppose you'd know why someone would want to own a dormant company and submit yearly accounts.

My interest in this is the company's name which has historical family connections. How would I go about offering to buy the company?

Sorry for the further questions.

Dave

[bbbbb]

Look at the opening post in this thread (http://www.ukbusinessforums.co.uk/forums/showpost.php?p=1060359&postcount=1)and you will see one of the reasons people have dormant companies. Obviously you can always write to he company at the registered office address and ask whether the company is for sale but probably unlikely if they are keeping the filing up to date

[onefortheroad]

Thanks very much for your time and expertise, bbbbb.

Dave