I need help figuring this HMRC situation out.

[Metabrand]

Hi everyone. Thanks in advance for any help you can offer.

I’ve been operating as a freelance marketer through a limited company since 2021. Last year, when I filed my accounts for 2021-2022, my QuickBooks account wouldn’t let me file between the dates HMRC were requesting. Since it was only about 2-days difference, I filed it anyway.

Naturally, ive been getting notices and fines from them, telling me to file for the dates specified.

There is no corporation tax or VAT to pay that year or in 2022-23, or this year in fact. The company brought in £500/week and I paid myself everything I earned (minus PAYE taxes and pension contributions, which have all gone to HMRC). In fact, the company operated at a loss due to work bills like QuickBooks and some freelancer tools.

The company is pretty much done now and I’m not operating through it anymore.

What should I do?

Thanks again.

 

[DWS]

It makes no difference if there is no C/Tax to pay, the Company still needs to submit a CT600 tax return, usually for the first year of incorporation this will mean submitting 2 returns, one for a 12 month period and one for a few days, but both need submitting to avoid penalties.

 

[Metabrand]

It makes no difference if there is no C/Tax to pay, the Company still needs to submit a CT600 tax return, usually for the first year of incorporation this will mean submitting 2 returns, one for a 12 month period and one for a few days, but both need submitting to avoid penalties.

Thanks. So I should just contact HMRC and explain the situation to them?

 

[DWS]

Thanks. So I should just contact HMRC and explain the situation to them?

You can do, but you should have already submitted Company tax returns, have you not done this?

 

[Metabrand]

You can do, but you should have already submitted Company tax returns, have you not done this?

I have but for the first twelve months of trading. There are a couple of days missing. For example, I've filed from 28th July 2021 - 27th July 2022 but they're asking me to file for the twelve months until 1st August 2022. Something like that anyway (I think it's probably obvious by now that I shouldn't be running a business. I'll stick to being an employee I think).

 

[Newchodge]

I have but for the first twelve months of trading. There are a couple of days missing. For example, I've filed from 28th July 2021 - 27th July 2022 but they're asking me to file for the twelve months until 1st August 2022. Something like that anyway (I think it's probably obvious by now that I shouldn't be running a business. I'll stick to being an employee I think).

I think you need to file from 28 July 2021 to 31 July 2021. Often, in the first few days of setting up there may be no transactions whatsoever, so the return may be nil for everything. Then file 1 August 2021 to 31 July 2022, then the same for 22-23.

Of course, what you really need to do is talk to an accountant.

 

[MyAccountantOnline]

Hi everyone. Thanks in advance for any help you can offer.

I’ve been operating as a freelance marketer through a limited company since 2021. Last year, when I filed my accounts for 2021-2022, my QuickBooks account wouldn’t let me file between the dates HMRC were requesting. Since it was only about 2-days difference, I filed it anyway.

Naturally, ive been getting notices and fines from them, telling me to file for the dates specified.

There is no corporation tax or VAT to pay that year or in 2022-23, or this year in fact. The company brought in £500/week and I paid myself everything I earned (minus PAYE taxes and pension contributions, which have all gone to HMRC). In fact, the company operated at a loss due to work bills like QuickBooks and some freelancer tools.

The company is pretty much done now and I’m not operating through it anymore.

What should I do?

Thanks again.

Generally HMRC will amend dates when requested.

What date was your company incorporated, what date did it commence trading, what dates have you prepared accounts to and what dates do HMRC want accounts for.

Have you also submitted the correct accounts to Companies House?

 

[Metabrand]

Generally HMRC will amend dates when requested.

What date was your company incorporated, what date did it commence trading, what dates have you prepared accounts to and what dates do HMRC want accounts for.

Have you also submitted the correct accounts to Companies House?

Thanks for your reply.

I've just checked and these are the exact details:

Incorporated 7th July 2021

First accounts I made up from 7th July 2021 - 31st July 2022 (Dormant company)

HMRC are saying I need to file accounts for the period of 7th July 2021 - 6th July 2022.

 

[MyAccountantOnline]

Thanks for your reply.

I've just checked and these are the exact details:

Incorporated 7th July 2021

First accounts I made up from 7th July 2021 - 31st July 2022 (Dormant company)

HMRC are saying I need to file accounts for the period of 7th July 2021 - 6th July 2022.

When did the company commence trading?

 

[Metabrand]

When did the company commence trading?

11/11/2022

 

[MyAccountantOnline]

11/11/2022

I'd give HMRC a call, give them those dates and they should be very happy to amend their records.

 

[Metabrand]

I'd give HMRC a call, give them those dates and they should be very happy to amend their records.

Thanks. I'll let you know how it goes for reference.

 

[DWS]

Thanks. I'll let you know how it goes for reference.

Did you not say upthread that you have already submitted a CT600 return for the first 12 months?

 

[Metabrand]

Did you not say upthread that you have already submitted a CT600 return for the first 12 months?You’ll h I’m not sure if there’s

You’ll have to forgive my lack of knowledge on the subject of filing tax returns. I don’t know the difference between filing a CT600 and telling HMRC that your company is dormant. I’m really not cut out for this ??‍

Basically, the business was incorporated on 7/7/2021 and didn’t start trading until 11/11/2022. I filed accounts to HMRC for the period of 7/7/2021-31/7/2022 which were dormant company accounts. Now they’re chasing me for the period 7/7/2021-6/7/2022.

 

[MyAccountantOnline]

You’ll have to forgive my lack of knowledge on the subject of filing tax returns. I don’t know the difference between filing a CT600 and telling HMRC that your company is dormant. I’m really not cut out for this ??‍

Basically, the business was incorporated on 7/7/2021 and didn’t start trading until 11/11/2022. I filed accounts to HMRC for the period of 7/7/2021-31/7/2022 which were dormant company accounts. Now they’re chasing me for the period 7/7/2021-6/7/2022.

When people say 'filing a CT600' they are referring to completing and submitting to HMRC a Corporation tax return.

You dont need to submit a Corporation tax return to HMRC if the company is dormant.

HMRC are chasing you for that period as they dont know the company was dormant. A phone call should sort this.

Do bear in mind Companies House need accounts and ensure you understand what dormant is - it has different meanings for Companies House and HMRC.

 

[MyAccountantOnline]

@Metabrand

Have a read here https://www.gov.uk/dormant-company

 

[DWS]

You file a Company tax return to HMRC and Company Accounts to Companies House so did you submit the first 12 months accounts to both of these?
I was just trying to clarify what you have actually submitted?

You’ll have to forgive my lack of knowledge on the subject of filing tax returns. I don’t know the difference between filing a CT600 and telling HMRC that your company is dormant. I’m really not cut out for this ??‍

Basically, the business was incorporated on 7/7/2021 and didn’t start trading until 11/11/2022. I filed accounts to HMRC for the period of 7/7/2021-31/7/2022 which were dormant company accounts. Now they’re chasing me for the period 7/7/2021-6/7/2022.

 

[Metabrand]

You file a Company tax return to HMRC and Company Accounts to Companies House so did you submit the first 12 months accounts to both of these?
I was just trying to clarify what you have actually submitted?

I sent the dormant company accounts to both of them. It's a little bit more than 12 months though: it's 12 months and 25 days all in one filing.

 

[Newchodge]

Both of them, yes. It's a little bit more than 12 months though: it's 12 months and 25 days all in one filing.

Which HMRC cannot accept. File the first few days then 12 months to 31 July 2022. As previously advised.

 

[Lisa Thomas]

If you ever start another limited company, please get advice from an accountant. It's not worth the risk when things go wrong.

 

[MyAccountantOnline]

I sent the dormant company accounts to both of them. It's a little bit more than 12 months though: it's 12 months and 25 days all in one filing.

The accounts can cover period of longer than 12 months (they can be up to 18 months) but a Corporation tax return cant - that can only be for a 12 month period. If the dates are correct and a Corporation tax return is required you apportion the figures in the accounts to go on two tax returns.