Hello everyone, I am an IT contractor and registered my ltd company last August. I traded/contracted for 4 months. However I have not contracted since then and was wondering whether its worth making my ltd company dormant from Jan 2015 since I have not had a contract this year. I am currently doing my PhD which has taken up much of my time this year in research. My questions are 1) Can I register my ltd company as dormant since January as I have not contracted and would this disadvantage me in any way 2) What do I do with the funds in my business account, am I allowed to take it out? I have not had a salary since I began contracting 3) I asked my accountant about making the company dormant a few months ago and they said they would charge me a hefty amount to do this, to be honest my accountant is not the most helpful. Please could you kindly assist and thank you.
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Speak to your accountant again, you are paying him for a service aren't you1) Can I register my ltd company as dormant since January as I have not contracted and would this disadvantage me in any way 2) What do I do with the funds in my business account, am I allowed to take it out? I have not had a salary since I began contracting 3) I asked my accountant about making the company dormant a few months ago and they said they would charge me a hefty amount to do this, to be honest my accountant is not the most helpful. Please could you kindly assist and thank you.
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Getting Some Closure: How to shut down your limited company :: Contractor UKThe Chunt of Chunts. -
Your company cannot be shown as dormant in the current company year as it has traded.
Also it is unlikely to meet the criteria to enable dormant accounts in future years if funds remain in the company bank or the company holds any assets.Comment
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Thank you for your response MrMarkyMark. I am with a big well know accounting firm which has been good at taking money from me, but the accountant is no good. My apologies for not stating that I am looking at contracting again in January 2016. I thought I could declare Jan to date as dormant so I don't incur any tax as I have not traded. Am a bit concerned about not being able to take money out of my business account in the meantime. Might as well get back on the phone and try and get something out of this accountant .............Originally posted by MrMarkyMark View PostSpeak to your accountant again, you are paying him for a service aren't you?
Getting Some Closure: How to shut down your limited company :: Contractor UKComment
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Some of them post on here, unsure whether yours does.I am with a big well know accounting firm which has been good at taking money from me, but the accountant is no good.
Worth giving them another call in any case. You should escalate the issue against the accountancy if you think the service is poor.
I'm with a large one (15 years now) and the service has always been excellent, although they were a lot smaller when I signed up.The Chunt of Chunts.Comment
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Why not keep your ltd co open and do a bit of consulting on the side to supplement your PHD?Comment
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I think that would be a good idea and the finance would go a long way in enabling me to fund conferences as well as field research. Many thanks for your input.Originally posted by PurpleGorilla View PostComment
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You are probably misunderstanding. Dormancy isn't a magic route to not incurring tax, it isn't a way out of escaping any tax liabilities already incurred when you were trading. If the company isn't trading, therefore isn't receiving any income, then it would not be racking up a tax bill, dormant or not.Originally posted by magnum View PostTaking a break from contractingComment
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This....Originally posted by chopper View Post
I'd love to know the OPs thinking behind that statement. Has he got a fundamental problem with his understanding of the whole financial picture?
To the OP. Could you explain which taxes you believe are affected by being dormant?Last edited by northernladuk; 29 October 2015, 20:44.'CUK forum personality of 2011 - Winner - Yes really!!!!
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