Guide to Dormant and Non-Trading Companies

 

If a company is engaged in some commercial operation, such as purchasing and selling products or offering services, earning dividends, controlling investments, or otherwise gaining revenue, it would not be considered dormant for corporate tax purposes.

If HMRC considers a business to be inactive, it would be excluded from the obligation to file an annual corporate tax return.


Company house


Companies House has identified only a few, very basic transactions that a business can report and still send dormant accounts:

1. Payment of filing fees to Companies House

2. Penalties for late account reporting

3. The amount charged for the company's shares before it was formed.





Non-Trading Companies


A non-trading firm (one that does not do business) maybe engaged in other financial dealings on a daily basis. Leasing, salaries, bank fines, and legal bills, for example, must be reflected in the firm's financial records; if this is the case, the company would not be deemed dormant, even if it is not trading.




Please contact our specialist team at Accotax.co.uk or email info@accotax.co.uk if you have any questions or if we can assist you in any way.


Resources:

1. https://ext-5636255.livejournal.com/4199.html

2. https://12shanzarao.wixsite.com/accotax-nontrading

3. https://accotax-london-accountants.weebly.com/

4. https://accountantsforsmallbusinesses.wordpress.com/2021/03/09/what-is-a-non-trading-company/

5. https://clearcollectiveposts.tumblr.com/post/645174351028781056/dormant-companies-what-is-a-dormant-company

6. https://12shanzarao.medium.com/dormant-company-explanation-f64fbf78d17b

7. https://gumroad.com/accotaxlondon1/p/dormant-companies-what-is-a-dormant-company


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