Making a new company dormant

[MrButton]

Hi Guys,

I incorporated my company with companies house in August this year with the intention to become a self employed IT contractor. I have not registered for TAX or VAT yet and the business hasn't begun trading. I am a single director.

However I have recently taken a permanent role and won't be reassessing my position until the end of next year (2016).

I don't know what I need to do. Do I need to make the company dormant and do I need to file company books? and personal tax returns?

Is it worth hiring an accountant to take care of this for me?

Thanks!
Ben

[SueEllen]

Close the company down completely and open a new one when you need it
It's easier and cheaper.

[jamesbrown]

Close the company down completely and open a new one when you need it
It's easier and cheaper.

This.

[MrButton]

Cool thanks very much. I'll do that then.

Is there anything special I need to do to close it down and do I need an accountant to do anything?

Cheers
Ben

[northernladuk]

https://www.gov.uk/strike-off-your-c...n-your-company

[ASB]

You will need accounts for this year because there have to be transactions of a capital nature related to the shareholders.

it should be fairly cheap to get these done if you are not confident.

I suspect in these circumstances it is not uncommon for the directors to resign and let nature take its course culminating in strike off.

the company of course is committing an offence by having no directors but that should have no comeback on the last director resigning. Being a director is a personal choice and I fail to see how a court could sucessfully force reinstatement. If the company were trading it could be a different story.

[JB3000]

You will need accounts for this year because there have to be transactions of a capital nature related to the shareholders.

it should be fairly cheap to get these done if you are not confident.

I suspect in these circumstances it is not uncommon for the directors to resign and let nature take its course culminating in strike off.

the company of course is committing an offence by having no directors but that should have no comeback on the last director resigning. Being a director is a personal choice and I fail to see how a court could sucessfully force reinstatement. If the company were trading it could be a different story.

Most, if not all, of the above is complete nonsense

Just simply submit Form DS01 to Companies House to close the company (if you have a company bank account it will be frozen) and write to HMRC to let them know that it was dormant and now you are planning to strike off so no corporation tax returns are due. Companies House and HMRC will then write back confirm the company is being struck off and no accounts/corporation tax are due.

Feel free to call CoHo and HMRC Corporation tax if any of the above steps are not clear- both offices are very helpful.

[SueEllen]

You will need accounts for this year because there have to be transactions of a capital nature related to the shareholders.

The OP hasn't started trading so there may not be any transactions.

So s/he can simply wait until the company is struck off by not filing anything.

I know people who have done that in the past as they also didn't have a company bank account. However the OP hasn't told us this information.

[ASB]

The OP hasn't started trading so there may not be any transactions.

There has to be a transaction. The initial shareholders have to exist; even if nil paid that will cause a capital transaction. However it appears there is a specific exemption for this (I didn't think there was) . Ie it is not necessarily a significant accounting transaction.

[ASB]

Most, if not all, of the above is complete nonsense

Just simply submit Form DS01 to Companies House to close the company (if you have a company bank account it will be frozen) and write to HMRC to let them know that it was dormant and now you are planning to strike off so no corporation tax returns are due. Companies House and HMRC will then write back confirm the company is being struck off and no accounts/corporation tax are due.

Feel free to call CoHo and HMRC Corporation tax if any of the above steps are not clear- both offices are very helpful.

The bit that was nonsense was my belief that the capital transactions (which do exist) were still significant accounting transactions whci would force non dormant accounts. Yes, this was wrong.

the specific situation the op is in appears to need Aa02 form.