Dormant Co Advise

[Frog Morton]

Guys,

Can anyone offer advice for a newcomer.

Shortly hoping to enter the contract market under Ltd Company. What happens if Co setup, but I then decide to take a permie job. If I leave Co in a dormant state, is there any legal obligations to HMRC, given that the Co exists but has never traded?

Many Thanks

[Frog Morton]

Can anyone help me with this?

Thanks

[KevinS]

When the company is initially formed, HMRC will send you a CT41G form for corporation tax purposes.. This needs to be returned within 3 months of the company starting to trade. If the company is not going to trade (i.e remain dormant), then you need to send HMRC a CT41G Dormant Company insert which allows you to specify a date the company will become active, or tell HMRC that it is never going to be active and will be struck off companies house, amongst other options. A google for CT41G will turn up a bunch of PDF links on HMRC's website..

[rootsnall]

You are better just wrapping it up when you don't need it. My accountant I think charges £100 for doing this, much neater and potentially a bit of a tax saver when you do it.

[FarmerPalmer]

jusr send a return to companies house every year - if you aren't trading inform the inland revenue and no tax to pay. It costs £15 pre year to file your company return online.

I kept mine when I went permie in April 2000 - and started trading again last September.

[Frog Morton]

jusr send a return to companies house every year - if you aren't trading inform the inland revenue and no tax to pay. It costs £15 pre year to file your company return online.

I kept mine when I went permie in April 2000 - and started trading again last September.

Cheers Farmer, just what I was after