Dormant Company Accounts (DCA)

[roydeck]

Hi Guys,

I have started a company 11 months ago, but I haven't done any trading at all. The company suppose to do some IT consultation services, but havent done any projects yet.

My question is: When filling the account file at the company house (using web filling) should I fill it as Dormant Company Accounts (DCA)?

The company house state that a company can be filled as Dormant if:

* are limited by shares
* have never traded
* does not have any subsidiaries
* is not a charity
* is an authorised insurance company, a banking company, an e-money issuer, a MiFID (ie Markets in Financial Instruments Directive) investment firm or a UCITS management company or which carries on insurance market activity
* have a total issued share capital of 50p or more

To the best of my knowledges, these apply to my company, but not sure about the bullet that preced the last bullet (i.e. is an authorised insurance company...etc)

Thank you for your help,
Roy

 

[elaine@cheapaccounting]

If you have no accounting transactions except these then you can file dormant accounts:

• payment for shares taken by subscribers to the memorandum of association;
• fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
• payment of a civil penalty for late filing of accounts

 

[elaine@cheapaccounting]

Oh and here is the format of the accounts:

http://www.vtsoftware.co.uk/final_accounts/dormant.pdf

Did you inform HMRC that it is dormant as well.

 

[jholden]

You are dormant if you have not traded.

The point to which you refer I don't think applies, because if it did trust me you would know.

Jason

 

[JulianB]

hi

I also have a "dormant" company. Or is it dormant?
I've done no trading, ie have had no sales in the past year.
However, I received a small amount of bank interest. Also, the guy who did my accounts last year told me that his fees qualified as a cost for this financial year.

Does the above mean my company was not technically dormant?

Does anyone want to help do with company tax return for the last financial year?

Julian

 

[elaine@cheapaccounting]

Julian

The fee should have been included in last year's accounts.

Technically again a small amount of bank interest means it is not dormant and the bank interest would be subject to corporation tax as it would have been received gross.

PM me if you wish to obtain a price for the work.

 

[jholden]

Julian,

No it is not dormant.

This is an area I know causes confusion, to be dormant you must have no transactions except the following can be disregarded:

• payment for shares taken by subscribers to the memorandum of association;
• fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
• payment of a civil penalty for late filing of accounts.

This is the problem with setting up a Limited Company, unlike a sole trader/partnership it is far more complex to deal with.

Contact a local accountant and ask for a quote to do a quick set of accounts for companies house, CT600, Corporation Tax Computation and Statutory Accounts for the Revenue.

I have no idea what they would charge you, as unfortunately, before they take you on they need to issue an engagement letter and go through client identification procedures and all this adds to the costs, which in your case is a shame as it will cost you when you have not actually traded.

Best of luck.

Jason

 

[roydeck]

Thanks for your help..all the best.