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Is the business classed as trading if?

Discussion in 'Accounts & Finance' started by iwednesday, Mar 7, 2018.

  1. iwednesday

    iwednesday UKBF Newcomer Free Member

    3 0
    Hi All,

    New here and will definitely be checking in often from now on.
    I have read through a few posts to try to find an answer to my question but to no avail.

    As the title asks: Is my business classed as trading if:
    1. I put personal funds into the company's account (Dloan)?
    2. The company uses said funds to buy pre-business stuff (website, logo, email, business cards)?
    3. The company uses said funds to produce/develop prototypes of a product to eventually sell in the later in a year or two?
    4. Items bought from abroad that incurred import fees and taxes to be paid for sampling purposes (packaging samples)?
    5. If the business has never sold anything?
    I ask this because I'll need to file company accounts with CH by Aug 2018 and just wanted to know what to class the business current state as?

    Many thanks!

    Tony~
     
    Posted: Mar 7, 2018 By: iwednesday Member since: Mar 7, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    13,233 2,862
    The company will be classed as trading for Company House purposes. You can submit a Corporation Tax return to HMRC if you want to use the loss to set off against future profit.
     
    Posted: Mar 7, 2018 By: Scalloway Member since: Jun 6, 2010
    #2
  3. iwednesday

    iwednesday UKBF Newcomer Free Member

    3 0
    @Scalloway Thank you for the quick and simple reply. Much appreciated.
     
    Posted: Mar 7, 2018 By: iwednesday Member since: Mar 7, 2018
    #3
  4. UK Contractor Accountant

    UK Contractor Accountant UKBF Big Shot Full Member - Verified Business

    4,098 699
    I don't believe the company is 'trading' for HMRC purposes.

    It is not dormant either - it will be regarded as 'active' which means you will not be able to file dormant accounts at CH.
     
    Posted: Mar 8, 2018 By: UK Contractor Accountant Member since: Sep 18, 2013
    #4
  5. SteLacca

    SteLacca UKBF Enthusiast Free Member

    804 157
    You may also want to consider whether you will qualify for R&D relief/tax credits given point 3.
     
    Posted: Mar 8, 2018 By: SteLacca Member since: Jun 16, 2016
    #5
  6. iwednesday

    iwednesday UKBF Newcomer Free Member

    3 0
    @UK Contractor Accountant Good to know. I'll most likely file with both HMRC and CH to keep everything synced.

    @SteLacca Thank you for the info. I will look into R&D relief but i believe we will not qualify.
     
    Posted: Mar 10, 2018 By: iwednesday Member since: Mar 7, 2018
    #6