New business new help hmrc

[Onsz]

Hi. Can someome advise me please. I am so confused. I set up a business name lsst october. I remember getting a letter to set up co-operation tax if i was trading but I never did it cause I wasn't trading. Around earlier this year I tried selling some things on tiktok. I sold 1 thing but only did it for 24hrs and haven't done anything since. So only was active fpr 24hrs and made like £2. Its now 12 month mark. Am I in trouble with hmrc for not signing up for co operation tax? Or is there anything else I was meant to do?

 

[Scalloway]

By setting up business name do you mean a limited company?

Are you planning to sell more stuff?

 

[Onsz]

By setting up business name do you mean a limited company?

Are you planning to sell more stuff?

Yes i set up a limited company for myself but not traded. Have business bank but I haven't really started properly selling. It was just fot a few hours that I tried to see how it works in last 12 months nothing. I might do start in december or new year but not in coming months. Just confused about if I was meant to tell hmrc anything or sign up for co op tax within first 3 months which I didn't..

 

[Mark T Jones]

Why do you want a limited company?

Id suggest you dissolve it and operate as a sole trader

 

[Onsz]

Why do you want a limited company?

Id suggest you dissolve it and operate as a sole trader

What I do about registeting for co op tax in my current situation? Do i just register as not trading/dorment?

 

[Newchodge]

Hi. Can someome advise me please. I am so confused. I set up a business name lsst october. I remember getting a letter to set up co-operation tax if i was trading but I never did it cause I wasn't trading. Around earlier this year I tried selling some things on tiktok. I sold 1 thing but only did it for 24hrs and haven't done anything since. So only was active fpr 24hrs and made like £2. Its now 12 month mark. Am I in trouble with hmrc for not signing up for co operation tax? Or is there anything else I was meant to do?

You'll need to send a confirmation statement to Companies House very soon.

 

[Onsz]

You'll need to send a confirmation statement to Companies House very soon.

Hi thanks yeah just wondering what to do about co operation tax as didn't register in first 3 months

 

[fisicx]

Hi thanks yeah just wondering what to do about co operation tax as didn't register in first 3 months

Give HMRC a call and ask them. The answer is probably you owe them nothing but you will need to file accounts.

As an aside, it’s corporation tax not co-operation tax.

 

[Onsz]

Give HMRC a call and ask them. The answer is probably you owe them nothing but you will need to file accounts.

As an aside, it’s corporation tax not co-operation tax.

Well i havent traded so nothing to owe just havent registered for co op tax as thought needed to.do it once strated trading

 

[Scalloway]

Personally I think the best way out of this is to dissolve the company. HMRC won't be worried about a couple of quid. As well as Corporation Tax you will have company accounts to deal with soon. For a non professional you are in for a world of pain.
I have been an accountant for 50 years and I leave limited companies to those who know the ins and outs.

 

[fisicx]

Well i havent traded so nothing to owe just havent registered for co op tax as thought needed to.do it once strated trading

Yes but you will have to file with companies house. This will cost you money even if you have never traded.

 

[WaveJumper]

Maybe a bit of light reading needed this weekend ...

Being a company director

Understanding your role as director of a limited company and your responsibilities to Companies House.

www.gov.uk

 

[Onsz]

I am not dissolving company. I will be starting amazon soon in a few months and you need to be a limited company to sell more then 40 items per month. Anybody can actually answer my question rather then tell me confirmation statement is due soon which i already know

 

[fisicx]

You need to call HMRC and ask them. They are the only ones who call fully answer your question.

 

[Newchodge]

Anybody can actually answer my question rather then tell me confirmation statement is due soon which i already know

You did ask

is there anything else I was meant to do?

 

[Ziggy2024]

All companies are registered for corporation tax when they are incorporated. You will have received a UTR from HMRC back when you set the company up. You need to self assess the tax due and report this to HMRC.

Recently I noticed HMRC assuming that the company is dormant. I'm not sure how they decide this, maybe unless told otherwise so there may be no notice to file. If a notice to file a return has been issued then you will get fined for not submitting a return.

It may be worth paying someone just to go through these basics with you if you intend to keep the company.

 

[Daybooks]

As I am sure you know your duties as a director commenced when you became a director not if and when you commenced trading. A company is either dormant or it is active. There is no ‘in test mode.’

When you ran your trial you opened for business and made a sale. You were therefore trading. This would be reinforced if the income went through the Company bank account. If on the other hand this had been accounted for in your personal capacity the Company would arguably remain dormant.

Your question as to whether you are in trouble with HMRC for not registering depends upon whether you were required to register. The Unique Tax Reference is normally issued shortly after incorporation. This is not quite the same as being registered for Corporation Tax because ‘registering’ notifies HMRC of your potential liability to Corporation Tax and thus HMRC will expect to receive a tax return.

Thus if you commenced trading then you should have registered. If you have never traded then you haven’t needed to formally register. Make sure your accounting records, your filings at Companies House and any need to file and pay taxes are all consistent with each other.

Hope this helps you answer your question satisfactorily.

 

[MyAccountantOnline]

Hi. Can someome advise me please. I am so confused. I set up a business name lsst october. I remember getting a letter to set up co-operation tax if i was trading but I never did it cause I wasn't trading. Around earlier this year I tried selling some things on tiktok. I sold 1 thing but only did it for 24hrs and haven't done anything since. So only was active fpr 24hrs and made like £2. Its now 12 month mark. Am I in trouble with hmrc for not signing up for co operation tax? Or is there anything else I was meant to do?

Hi Onsz

If you set up a limited company which hasn't traded and you dont want to keep the company dormant (which will save the cost of preparing and submitting to Companies House annual accounts and a Confirmation statement) you can apply to have it struck-off. Have a read here https://www.gov.uk/strike-off-your-company-from-companies-register

You said YOU (I am emphasing you as you and your limited company are separate) made £2 of Tiktok sales - no you aren't in trouble with HMRC. Have a read up on the HMRC trading allowance - broadly you can earn £1,000 which is tax free

 

[GLAbusiness]

Onsz

Based on your posts and questions I feel that your knowledge of the regulatory and accounting aspects of running a limited company is very rudimentary.

You have received advice above which you can follow if you insist on a DIY approach. There is (I would guess) a significant risk that you will do something either wrong or not taking full advantage of the savings you could make.

I would recommend getting an accountant involved at the earliest stage to avoid the potential pitfalls.

 

[Lisa Thomas]

I strongly suggest to employ an accountant to help with the company's requirements, and to sort it's tax returns etc. as mistakes can be costly...!

Some have kindly taken time out to reply to your posts so would recommend you start there.