Is my limited company active?

[leventis]

Hi,

I am a bit unsure whether my company is considered to be active. I created my company at the end of November. Personally I started trading (claiming expense for now) last week.

From what I have read, I need to notify within 3 months HMRC that I am trading and that the company is active.

At the company's house I set up HMRC along with it. I have received my Unique Tax Payment code.

So is the company considered to be active or not? If it is not what do I have to do?

Thank you for your help.

 

[woodss]

Check WebCHeck on the companies house website and see if it's listed as Active or Dormant.

 

[leventis]

That was easy! It's active.

Thanks for your help.

 

[David Griffiths]

That was easy! It's active.

Thanks for your help.

It would be. All companies are listed as active from the day of incorporation unless you file dormant accounts after the end of the first year, or appoint a liquidator.

The question for HMRC is not is the company active by Companies House definitions, but is the company trading. Are you open for business? In that case you are trading. If you are merely preparing to trade then, evidently, you aren't.

 

[leventis]

Hi David,

Ok that makes sense as well.

So when HMRC speaks about being active, they mean if you are trading and considered for Corporation Tax which is what mostly I am interested in.

For the time being I am just setting up so I am claiming expenses for stationery and other things that I need to start off. I have read on their website that this is considered to be a "trading" company.

According to the following url, to register your company as active (trading):
hmrc.gov.uk/ct/getting-started/new-company/start-up.htm#3
1. the joint registration facility contained within the Companies House Web Incorporation Service
2. HMRC's online registration service


hmrc.gov.uk/ct/getting-started/new-company/start-up.htm#2
Companies House tells HMRC when any limited company is formed and registered with them. But if you use the Companies House Web Incorporation Service and your company is 'active' at the time you incorporate it, for example it has started trading or receiving income, you can choose to supply the statutory information you need to give HMRC when you become active at the same time.

HMRC uses the information they receive from Companies House to set up a computer record for your company and allocates it a reference number known as a Unique Taxpayer Reference (UTR). They then send form CT41G (Corporation Tax - Information for New Companies) to your company's registered office. This form includes your company's UTR so please keep it safe as you will need it to contact HMRC. It also tells you what you need to do if your company has become 'active' and suggests other tax implications your company may need to consider.

It's important that you read form CT41G carefully and take any action that's needed promptly. The following sections cover the main things you need to do and when.

My question basically is:
Do I have to do an extra step since I registered through the company house to be considered as trading by HMRC?
Is there a way of checking either in Companies House or in HMRC?


I never received a CT41G form, but I did receive a paper with my Unique Tax Payer number. I think it becomes more clear to me as I write about it. I have read about these things but I just want to make sure its done correctly (I will be getting an accountant soon)

To answer my own question, I think that I have to log in to the following address and set my company as trading.
online.hmrc.gov.uk/registration/options?GAURI=


Please let me know if I am on the right track. Thank you for taking time to respond.

 

[David Griffiths]

Details of what you need to do are in the letter that advised the company UTR. It depends on what options you took when you set the company up.

I never give any HMRC information on incorporation, simply because we usually don't know the exact date of trading. Then when it comes to registration, we can do this as agents, using our own logins, so I'm not much use when it comes to the detail of how to fill in the forms as a taxpayer, I'm afraid

 

[leventis]

That's ok David. You definitely made it clear for me the difference between being active for Company's House and being active (trading) for HRMC.