Suspending Company

[Paul77]

Hi,
As contracts are difficult to get hold at the moment - does anyone know
whether its possible to 'suspend' one's company - I believe you then don't need
to pay accountancy fees and at the end of the financial year one informs HMRC that the company has not been trading - you don't need to submit annual accounts. But if, before April you do land a contract then the company can easily be re-activated and an account re-appointed. Does anyone have any experience on the details of this?

Paul

[Archangel]

Paul, the term you are looking for is "filing accounts for a dormant company"

Google will be your friend.
HTH

[PhilAtBFCA]

No contract - Limited Company

Hi Paul,

You might find this link useful, it is an article on the choices you need to make when out of contract and the options you have.

Your company continues to trade even if you have no sales ( no contract), you may still have expenses, you also have all the same obligations as a Director of a company with sales, filing with companies house, paye, vat, annual returns etc. etc.

But there are ways to cut costs and to make life a little easier when you are in this position, the article covers these too.

Hope it helps.

Phil

[Kess]

Phil,

Not sure if you can answer a follow-up question. According to the info at Companies House a company is dormant if it "has no 'significant accounting transactions' during the accounting period. A significant accounting transaction is one which the company should enter in its accounting records."

Does this mean that taking a dividend from the retained profits in a dormant company would be enough to cause it to lose its dormant status?

Thanks.

[PhilAtBFCA]

Kes

Dormant really means doing nothing from an HMRC point of view - no transactions at all.

You could still do the accounts yourself though and file them with HMRC and Companies House if there are only a few transactions, or look for an accountant that will not chare you a great deal for doing it, as if there are only a few transactions it is not a big job.

From an HMRC point of view taking a dividend is enough to make normal reporting necessary.



Phil

[Kess]

OK, thanks for the clarification. I'm considering taking a permie position and thought it was possible to make my company dormant and take the retained profits out gradually as dividends over the next few years, but it sounds like that's not permitted.

[Moscow Mule]

OK, thanks for the clarification. I'm considering taking a permie position and thought it was possible to make my company dormant and take the retained profits out gradually as dividends over the next few years, but it sounds like that's not permitted.

Of course it's permitted. You just have to do your accounts.

[Kess]

Calm down, I meant it's not permitted if the company is officially dormant.

[xoggoth]

I think certain small or statutory transactions are permitted for a dormant company, Companies House filing fees for example. I think if you look at cos hse website it spells out what dormant means.