Unsure of accounts to prepare for HMRC, Dormant or not?

[newbieuk]

Hello, I have a company that is not currently trading at all but i am confused as to how to prepare accounts for HMRC as it is now due. I have a bounce back loan which im paying off so this means there are still loan repayments coming out of my business accounts and bank charges of maintaining my account. These are the only transactions coming out of my business account . There has been this debate about what is classified as being dormant for Corp tax and with Companies House.

Pls, my question is

• Should I declare the company ‘dormant for corporation tax’ on HMRC as i know i cant make the company dormant on companies house? No income but loan repayments and bank charges are only expenses (I have prepared Micro entity accounts with Companies House in May when this was due)
• When trying to fill the questions on HMRC filing page, it says do you want to submit to HMRC or both HMRC and Companies house? Which do i choose?

Thanks a lot

 

[MyAccountantOnline]

Hello, I have a company that is not currently trading at all but i am confused as to how to prepare accounts for HMRC as it is now due. I have a bounce back loan which im paying off so this means there are still loan repayments coming out of my business accounts and bank charges of maintaining my account. These are the only transactions coming out of my business account . There has been this debate about what is classified as being dormant for Corp tax and with Companies House.

Pls, my question is

• Should I declare the company ‘dormant for corporation tax’ on HMRC as i know i cant make the company dormant on companies house? No income but loan repayments and bank charges are only expenses (I have prepared Micro entity accounts with Companies House in May when this was due)
• When trying to fill the questions on HMRC filing page, it says do you want to submit to HMRC or both HMRC and Companies house? Which do i choose?

Thanks a lot

It's clearly explained on Gov.uk when a company is dormant for HMRC and Companies House here -
https://www.gov.uk/dormant-company

Based solely on your post the company was dormant for HMRC purposes but not for Companies House.

 

[newbieuk]

Thanks a lot

so on the HMRC site when trying to start the CT return, it asks file for HMRC or HMR and Companies house? do i choose both or just HMRC?

 

[WaveJumper]

Well I have to ask is this truly classed as a dormant company if loan repayments are going through the accounts.

 

[Scalloway]

o on the HMRC site when trying to start the CT return, it asks file for HMRC or HMR and Companies house? do i choose both or just HMRC?

You choose both unless you have informed HMRC the company is dormant for tax purposes. Failing to file accounts with Companies House will result in penalties.

 

[Lisa Thomas]

Is the company insolvent?

 

[newbieuk]

Well I have to ask is this truly classed as a dormant company if loan repayments are going through the accounts.

This is what im confused about . But i read it is dormant for Corporation tax purposes if it has no trading income which is different to dormant for Companies house which isn't because loan repayments are going through

 

[newbieuk]

You choose both unless you have informed HMRC the company is dormant for tax purposes. Failing to file accounts with Companies House will result in penalties.

Thanks a lot. Although i have filed Micro entity accounts in May with Companies House (just balance sheet). This is what i wanted to clarify.

 

[newbieuk]

Is the company insolvent?

Technically yes , but i don't want to leave the loan unpaid so still paying this off

 

[Lisa Thomas]

So you are personally paying the company's debt out of a moral stance?

 

[newbieuk]

So you are personally paying the company's debt out of a moral stance?

Yes

 

[Lisa Thomas]

Thank you for clarifying. I presume you know you are not obligated to do that.