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People often set up a limited company for various reasons but never use them. This could be they just want to keep a name, or their plans change and it’s no longer the right time.

However, it comes as a surprise when they find that their limited company has been struck off the register and, therefore, no longer exists.
Once you are a director, you must comply with Companies House and HM Revenue legislation.

Here is what you must do if your limited company is not trading but you would still like to keep it:

Inform HM Revenue that the limited company is dormant otherwise they may expect a corporation tax return to be filed. Failure to submit a corporation tax return results in penalties and its either pay up or appeal.

You MUST file a confirmation statement at Companies House every year and pay a fee of £13.

You MUST file dormant accounts even if the company is not trading.

Doing the above is pretty straight forward and there are a number of helpful demos to guide you through the process of filing a confirmation statement.

https://www.gov.uk/government/news/watch-our-video-on-completing-your-confirmation-statement

This guide will help you file dormant accounts if the limited company is not trading yet:

https://www.youtube.com/watch?v=8UM13GM-cm8.

Remember you will need your company number and authentication code to be able to do this.

I would strongly recommend that you engage an accountant as soon as you start trading to ensure that you get your tax planning done from the word go. Leaving this for later might be too late to claim some tax allowances.

Get in touch if you have already stated trading and need the help of an accountant, or read about how a Financial Health Check can serve you and your business.