Filing company tax return but never traded

[robdex1]

About two years ago I set up a ltd company with the intention of selling on amazon. I registered with companies house and got a revolut business account but due to one thing or another I never actually got round to doing any trading. I'm wondering what to do as I need to submit tax return by 7th March but I don't want to pay £300 to an account when there has never been any trading. What are my options here? Should I register my company as dormant? It says you dont need to do a tax return if it's dormant unless you have received a letter saying you should, I received a letter a while back so I'm not really sure what I'm supposed to do. I received a letter from an accounting company saying they can do tax return dormant accounts for £80. Don't want to spend a lot of money however I want to make sure it's done properly. Any advice please?

 

[Lisa Thomas]

one for @Scalloway...?

 

[Paul Kelly ICHYB]

Close the business?

 

[Scalloway]

If there are no transactions you can file dormant accounts.

File dormant accounts with Companies House

find-and-update.company-information.service.gov.uk

Tell HMRC your company is dormant for Corporation Tax

Tell HMRC your company is dormant for Corporation Tax

How to manage tell HMRC your company is dormant for Corporation Tax if you have stopped trading or have never traded.

www.gov.uk

Then apply to have the company dissolved.

Strike off your limited company from the Companies Register

How to close down your limited company by getting it struck off the Companies Register

www.gov.uk

 

[robdex1]

Close the busines

Close the business?

I thought about that but I keep saying to myself I want to try and start it but struggling to find the time. If I closed it how would that work with submitting accounts or tax return. Wouldn't HMRC still need to know if I need to pay any tax. If I closed it and decided to start up again would I just set up another new company?

 

[Scalloway]

Did the company have any transactions through the bank? If it didn't sell anything then just tell HMRC it was dormant.

 

[ethical PR]

About two years ago I set up a ltd company with the intention of selling on amazon. I registered with companies house and got a revolut business account but due to one thing or another I never actually got round to doing any trading. I'm wondering what to do as I need to submit tax return by 7th March but I don't want to pay £300 to an account when there has never been any trading. What are my options here? Should I register my company as dormant? It says you dont need to do a tax return if it's dormant unless you have received a letter saying you should, I received a letter a while back so I'm not really sure what I'm supposed to do. I received a letter from an accounting company saying they can do tax return dormant accounts for £80. Don't want to spend a lot of money however I want to make sure it's done properly. Any advice please?

If you don't want to pay for professional advice look on the HMRC website . Why have you kept a limited company open that you are not using for two years .

 

[robdex1]

Did the company have any transactions through the bank? If it didn't sell anything then just tell HMRC it was dormant.

No transactions, just £250 that I transferred in initially but then withdraw several months later. No business transactions though. To update, the letter I received was from an accounting company saying that I need to submit my end of year accounts to companies house, the letter from hmrc says I need to submit my tax return by end of June. If my company is dormant then do I follow the link that you sent to submit dormant files to companies house. Is it easy to do myself? Also if I have made my company dormant after receiving the hmrc letter for tax return do I still need to file it?

 

[robdex1]

Also to add, I have just signed in to the webfiling site and under your companies it says you have not added any company to your WebFiling account. Do I just add the company and continue from there?

 

[Scalloway]

If my company is dormant then do I follow the link that you sent to submit dormant files to companies house. Is it easy to do myself?

As I recall it is very simple. You just need to enter the share capital on one side then either show it as unpaid or held as cash.

Also if I have made my company dormant after receiving the hmrc letter for tax return do I still need to file it?

You shouldn't need to file it but check with HMRC.

Do I just add the company and continue from there?

I think so. It is a while since I did this.

 

[robdex1]

As I recall it is very simple. You just need to enter the share capital on one side then either show it as unpaid or held as cash.

You shouldn't need to file it but check with HMRC.

I think so. It is a while since I did this.

I have zero in my business bank account so would I put unpaid?

 

[robdex1]

i don't know what to put for the shares do I just enter zero in each section. It asks for number and value of shares. I have to select type of share do I just put ordinary. I tried to post a link of the page but it says I'm not allowed

 

[Scalloway]

i don't know what to put for the shares do I just enter zero in each section.

You should have selected a number and value of shares when you set the company up. If you can't remember look up your company on the Companies House website.

I have zero in my business bank account so would I put unpaid?

Yes.

 

[robdex1]

You should have selected a number and value of shares when you set the company up. If you can't remember look up your company on the Companies House website.

Yes.

Thanks I have found it. What I am now concerned is that I have only registered with hmrc as dormant as of yesterday. When I go to companies house WebFiling service it says account active. Does it take a certain amount of time for companies house to be notified as dormant by hmrc and to update, can I still submit dormant accounts now? I only have until the 7th March and worried that I submit dormant accounts but companies house think I'm still trading. Do you know if this could cause an issue? I don't want to end up with a penalty or anything

 

[StevensOnln1]

Companies House and HMRC are two separate organisations, each with a different criteria for whether a company is dormant/non-trading. Companies House will list the company as active until you tell them otherwise by filing dormant accounts. CH don't publish information from HMRC.

 

[robdex1]

Companies House and HMRC are two separate organisations, each with a different criteria for whether a company is dormant/non-trading. Companies House will list the company as active until you tell them otherwise by filing dormant accounts. CH don't publish information from HMRC.

Ok great thank you so I don't need to worry