Yet another dormant accounts thread

[braddo]

My company stopped trading at end of December last year. I notified HMRC that the company has been dormant since then.
The company had traded for a few months of its financial year. I've filed a final set of accounts covering those months and settled the corporate tax bill.
Now I need to file dormant accounts each year. Since the company has alread traded, the AA02 document is not applicable. Yes - my company qualifies as a microentity.
Is it something I can do myself? I can't seem to find a straight answer on what exactly dormant accounts need to show. Can anyone point me to an info source that explains and illustrates it clearly? I assume it can or should show the same balance sheet as the final set of accounts that were filed when it ceased trading?

 

[WaveJumper]

Im sure one of our trusted accountants will be along at some point but I would say yes its fairly straight forward when you log into your online account pick the option for filing dormant accounts and run through the "box's basically your putting zero in everything its quite straight forward make sure you tick the box for a copy to be sent to CH.

 

[Heyes]

If a company has traded, it can't ever file dormant accounts for Companies House.

You'll need to file micro-entity, which of course you can do yourself because your post suggests you've already done similar for either CH or HMRC.

 

[braddo]

I've never filed micro-entity accounts. I've paid an accountant to file proper accounts each year.

 

[Heyes]

I've never filed micro-entity accounts. I've paid an accountant to file proper accounts each year.

My assumption was based on 'I've filed a final set of accounts'.

Nonetheless, the micro-entity accounts you'll need to file are straightforward, and you already have the figures from those aforementioned accounts.

 

[Scalloway]

If there are no transactions then log onto Companies House where you will find an option to fill in your company accounts on a template. Just fill in the same figures as last year.

 

[braddo]

If there are no transactions then log onto Companies House where you will find an option to fill in your company accounts on a template. Just fill in the same figures as last year.

When you say log in to Companies House, do you mean I log into the Web Filing system that I use to submit my Confirmation Statements each year?

 

[Gyumri]

If a company has traded, it can't ever file dormant accounts for Companies House.

Sorry to have to correct you but a company that has traded can file dormant accounts if no trade has been carried out in a financial period. It can revert to filing trading accounts if it resumes trading.

Filing accounts for a dormant company

Companies House provides guidance on the processes and requirements

www.accaglobal.com

 

[Scalloway]

When you say log in to Companies House, do you mean I log into the Web Filing system that I use to submit my Confirmation Statements each year?

Speaking from memory (I'm away from home and my PC at the moment) yes.

 

[Heyes]

Sorry to have to correct you but a company that has traded can file dormant accounts if no trade has been carried out in a financial period. It can revert to filing trading accounts if it resumes trading.

Filing accounts for a dormant company

Companies House provides guidance on the processes and requirements

www.accaglobal.com

Confusingly, although CH states 'a company is called ‘dormant’ by Companies House if it has had no ‘significant accounting transactions’ during the accounting period', it uses a different interpretation when using their system to file.

The article to which you linked contains this paragraph:
'WebFiling offers a simple online template enabling easy and quick electronic submission of dormant accounts for companies that have never traded.'

When online-filing (whether web-filing or the 'find and update company information service') and selecting 'dormant accounts' as the type to be filed, the service presents messages of 'these accounts are suitable for companies that have never traded' and 'this accounts format is only for companies that the only transaction entered in the accounting records of the company is the issue of subscriber shares' [this is misleading, because the filing of a confirmation statement might not breach dormancy].

So although a company may have had no 'significant' transactions in the year, it is not dormant for for the purposes of using their online filing which can only be used for a company which has never traded.

Additionally, the AA02 (dormant company accounts) paper form (for filing by post) contains the same message of 'these accounts are suitable for companies that have never traded'.

I don't know what the situation is when using software (rather than browser) to file - which might enable the filing of dormant accounts for companies which have previously traded. Likewise nor am I aware whether dormant accounts can be filed by post without an accompanying AA02 form. So, on these two points (for which I'll welcome factual - rather than opinion-based - clarification), I could be incorrect in my earlier statement of 'can't file dormant having traded', and if so I of course duly apologise for any confusion I may have caused.

 

[Gyumri]

I can see where the confusion lies - what CH should be saying is that dormant accounts are suitable for companies that have never traded and for companies that have made no significant transactions in an accounting period - ie companies which are dormant because they've not done any trade in a financial period.

Many companies have traded at one time but then go dormant for a number of years before starting up again. In the meantime they are still require to file accounts for the periods when they are dormant. Whether CH calls these "dormant accounts" by some other name I do not know so perhaps you could check and post back.

 

[Heyes]

I can see where the confusion lies - what CH should be saying is that dormant accounts are suitable for companies that have never traded and for companies that have made no significant transactions in an accounting period - ie companies which are dormant because they've not done any trade in a financial period.

Many companies have traded at one time but then go dormant for a number of years before starting up again. In the meantime they are still require to file accounts for the periods when they are dormant. Whether CH calls these "dormant accounts" by some other name I do not know so perhaps you could check and post back.

I missed the 30-minute limit to edit my previous post and add this to clarify:
A company can trade and subsequently become 'dormant for CH', but then cannot file dormant accounts with form AA02 or web-filing or the 'find and update company information service' - these can only be used by companies which have never traded.

Getting a definitive answer from CH is so unlikely as to not be worth bothering with - my experience is that although polite and usually friendly they're extremely non-committal and do not provide definitive interpretations. More importantly, 'just file micro' is a better use of time and energy than trying to determine whether a company is eligible to file dormant accounts - the difference/advantages of dormant are minimal.