first web-filing (inactive ltd company)

[horizon101]

Hello
I am a director of a non-trading Ltd company.
Not even having bank account, not VAT registered.
No any activity at all, let alone shares issue after creation.

Company never started trading, but I still hope to start business sometimes, so, for this reason I am not closing this company yet.

This is dormant company and feels wrong to hire accountant to submit accounts (looks single page only). Instead, I hope to get some guidance from this forum.

I am also using KashFlow to document my expenses which I've incurred as a Director and paid from my own pocket to cover those costs (internet domain name, design, hosting, virtual office, various subscriptions). All together I've spend around 1100 GBP since company creation.
So, if I run Balance Sheet report in Kashflow it says:
P&L account '-1100 GBP',
Total Current Liabilities: '1100 GBP'.


Question 1 :

while doing web filing (AA02) Dormant Company Accounts (DCA)

in section Cash at bank and in hand, should I state '-1100 GBP' or '0 GBP'?

Question 2:

in section 'Issued share capital'

Number of shares (does it means issues during company creation???)
Select or enter a share class
Select Value of each share
Issued share capital total Current period
Shareholders' fund (does it means capital issues during company creation???)

thank you,
horizon101

 

[john1989]

You cannot file dormant accounts to CH in these circumstances.

 

[UK Contractor Accountant]

File abbreviated accounts not 'dormant' accounts.

 

[horizon101]

thank you John1989, for answer, but I am struggling to interpret what you saying. I trust if you give more details I will be able to understand it.

Forum prevents me from posting link to screenshots so I must spell it out:
I am not filing Abbreviated Accounts but filing Dormant Company Accounts.
Hope this helps?

 

[john1989]

You cannot file dormant accounts to Companies House.

You must file abbreviated accounts.

 

[GraemeL]

I am not filing Abbreviated Accounts but filing Dormant Company Accounts.

If there is any income or expenditure, the company is not dormant.

 

[horizon101]

GraemeL, there is neither income nor expenditure by my ltd company. However there are my personal expenditure as a director. How do I fill the form?

John1989, since forum is not allowing me to post screenshots, I will try to send it to you via site internal messaging system; but I am positive, Companies House allowing me to file dormant account, I just need to know how to do it properly.

 

[GraemeL]

GraemeL, there is neither income nor expenditure by my ltd company. However there are my personal expenditure as a director. Companies House allowing me to file dormant account, I just need to know how to do it properly.

Nope. Not sure how to make it any clearer. If you are charging the company anything at all, including your personal expenditure as a director, then you cannot file dormant accounts. The accounts for a dormant company must show no expenditure

If you are not claiming your personal expenses as a director, then it is not clear why you mentioned them at all.

The cash at hand should reflect the monies paid for shares. You must have issued shares when the company was formed.

 

[horizon101]

GraemeL,
I think you just nailed this for me.

That's correct I paid out of my pocket, never claimed it from ltd company, but entered this in the books because of my ignorance. I should correct this retroactively in KashFlow somehow...

No changes have been made to shares since company formation.

 

[Scalloway]

As I see it you have two options with the money you spent on behalf of the company.

1. Forget about it and file dormant accounts. If you do this the domain name etc you have paid for will never belong to the company.
2. Keep the loss in the Profit and Loss account for setting against future profits and file abbreviated accounts.

As I see it option 2 is the best.

 

[horizon101]

thank you, Scalloway, and everyone who replied: this is great forum.

I've decided to go for submission of abbreviated accounts.

I already prepared my 1st submission it looks following way:

FIXED ASSETS:
==================
all fields are zero.


CURRENT ASSETS:
==================
all fields are 0, except
Cash at bank and in hand: -£1096 (negative figure)


CAPITAL & RESERVES:
====================
all fields are zero, except
Called up share capital: £4
Profit and loss account: -£1100 (negative figure)

Do I understand 'mechanics' of accounting correctly?
Thank you very much.

 

[Scalloway]

There should be a creditor balance of -£1,100 and a cash balance of £4.

 

[horizon101]

hm.... do you mean the line on abbreviated account form that say:
"Creditors: amounts falling due within one year"...

Is this right place to put -£1,100 amount?

I am not convinced these are 'due' because there already paid y director from personal credit card.

 

[john1989]

Exactly.
So you should have a credit balance on your DLA for £1100
It isn't negative cash

 

[horizon101]

John1989, is DLA means "director’s loan account" ?
My balance sheet does not even have such line. I am using Kashflow software... will try to research where and how to enter this....

 

[john1989]

Yes, that's what it means.

 

[Scalloway]

How to set up a DLA in Kashflow
https://www.kashflow.com/support/kb/directors-loan-account/

 

[horizon101]

Merry Christmas and Happy New Year, everyone!

thank you for all guidance last year for my non-trading company.

Just trying to be careful and wanted to share with forum before I submit my abbreviated accounts at Companies House.

This is how balance sheet in KashFlow looks like:
=====================
Fixed assets : 0
Current Assets:
current account £4 (this is director's paid-in share capital into company)

Current liabilities:
- Dir Loan Account £1100

Current assets less current liabilities : -£1096

P&L account: -£1100
=====================


This is how I submit my abbreviated accounts to Company House:

=====================
FIXED ASSETS:
all fields are zero.

CURRENT ASSETS:
all fields are 0, except
Cash at bank and in hand: £4 (entered as positive figure)
Creditors: amounts falling due within one year : £1096 (entered as positive figure)

CAPITAL & RESERVES:
all fields are zero, except
Called up share capital: £4 (positive)
Profit and loss account: - £1100 (negative figure)
=====================

Hope all looks correctly and I am good to submit?
thank you in advance.

 

[Scalloway]

Your Creditors: amounts falling due within one year should be £1,100 otherwise the accounts will not balance. Net current liabilities will be £1,096.

 

[GraemeL]

You need an accountant!