Ltd Co falsely lodging dormant accounts

[Kermit007]

Hello,

First forum post so I hope that I am in the right place.

My wife is the owner of a fitness studio and is looking to engage a fitness instructor to run a couple of classes per week. After narrowing the last few candidates down to a shortlist, we thought it wise to use the government company check web service to check the background of these instructors' companies, before making a final choice.

One instructor is well established (Incorporated in 2013 and we know that they run a high volume etsy web store relating to fitness, as well as running fitness classes. However, their company has been filed as "Dormant" for the entire duration of its incorporation.

What reason would somebody do this? My wife really liked this instructor but we want to be sure that we engage somebody who is doing everything above board.

I used to be a limited company director but am a couple of years out of the game, so maybe the rules have changed?

Cheers
Kermit

[SimonMac]

How will she be engaging the PTI? Will it be on a PAYE basis, if so no problem

[Darren at Fox-Bartfield]

Ltd Co

It could be that they've set the company up to protect the name at Co House and actually trading as an unincorporated entity.

Have you asked the questions as to why?

[Kermit007]

The instructor will operate as a limited company- will submit invoices for my wife's company to make payment to their company.


They won't be an employee, just a provider of a service.

[Kermit007]

It could be that they've set the company up to protect the name at Co House and actually trading as an unincorporated entity.

Have you asked the questions as to why?

The invoices provided by the person for their trial class state "xyz trading as company abc Ltd ". We looked up company abc.

[northernladuk]

Is it possible he's started trading again this year so it's the entry that is out of date?

Bearing in mind you are doing business with him would it not be better to ask him directly?

https://www.gov.uk/restart-a-non-tra...ormant-company

[Maslins]

The invoices provided by the person for their trial class state "xyz trading as company abc Ltd ". We looked up company abc.

Darren's comments would be my first thought, or just that they'd rushed to incorporate, then spoke to an accountant and agreed sole trader was a better way to go at least temporarily.

As others have said, I don't see an issue in asking the person. Otherwise, check the timing of the invoice with respect to dormant accounts being filed. Eg possibly the company only started trading recently, since the last statutory accounts were filed.

Yes there's a possibility that they're trading profitably whilst lying and submitting dormant accounts, but I'd be surprised. There are other less dodgy reasons why things might appear as they do.

[Kermit007]

He's had the online business running constantly so there shouldn't have been a gap.

But we will ask, just were wanting to know ahead of time if we need to watch out for any dodgy business.

Cheers

[northernladuk]

He's had the online business running constantly so there shouldn't have been a gap.

But we will ask, just were wanting to know ahead of time if we need to watch out for any dodgy business.

Cheers

Kudos for doing your homework I'd say.