Dormant company expences

[Goggy]

My accountancy says that it's ok for the dormant company to pay accountancy fees, bank account charges. All the articles I read on the topic contradict this, but I can't find any official information
Can you please advise where to find a definitive answer
(a particular hmrc doc for example)

Thank you

[Lance]

My accountancy says that it's ok for the dormant company to pay accountancy fees, bank account charges. All the articles I read on the topic contradict this, but I can't find any official information
Can you please advise where to find a definitive answer
(a particular hmrc doc for example)

Thank you

expenses

Depends on what you mean by dormant. A company that is classed as dormant on companies house cannot trade. I blieve it could still pay accountancy fees, but I don't know why you would as you'd not be able to claim VAT back or claim any losses back against CT.

If truly dormant then I'd not want to pay an accountant as they have nothing to do as no returns are needed.

read this Dormant companies and associations - GOV.UK

Why not just close the company? Unless you really want to keep the company for the sake of vanity I don't see why you'd keep it dormant.

[BR14]

expenses

Depends on what you mean by dormant. A company that is classed as dormant on companies house cannot trade. I blieve it could still pay accountancy fees, but I don't know why you would as you'd not be able to claim VAT back or claim any losses back against CT.

If truly dormant then I'd not want to pay an accountant as they have nothing to do as no returns are needed.

read this Dormant companies and associations - GOV.UK

Why not just close the company? Unless you really want to keep the company for the sake of vanity I don't see why you'd keep it dormant.

[SimonMac]

[Lance]

that's a typo. They're different.

[wattaj]

that's a typo. They're different.

Oh no... "theyr'e" different Old Boy.

[Lance]

Oh no... "theyr'e" different Old Boy.

I do hope you are joking.

[wattaj]

I do hope you are joking.

[cojak]

*cough*

[Maslins]

By definition if your company is dormant, then it isn't trading. This means it can't have any expenses that are incurred wholly and exclusively for the benefit of the trade...as there is no trade. The company can still incur costs, but you won't be getting corporation tax relief for them.