Trading but Acting Dormant

[timbo4]

Can anyone answer this question? (and excuse me for possibly being a bit simple for asking it!)

If a limited company puts in nil CT, PAYE and VAT returns to HMCE and posts dormant accounts to companies house, but is, in fact, still actively trading, how does the scam eventually get found out?

Is it because UK banks have an obligation to check that companies that are actively trading are not putting in dormant accounts for example?

[Pondlife]

Why would you even contemplate this???

Q1) All cash will be going through YourCos accounts which you will be drawing as salary/dividends, correct?

Q2) Do you like Jail?

[northernladuk]

Whats with all the ridiculous posts asking for information on tax evasion in the last few days??

This is a contractor forum not one on how to break the law. Jesus!!

[MarillionFan]

Can anyone answer this question? (and excuse me for possibly being a bit simple for asking it!)

If a limited company puts in nil CT, PAYE and VAT returns to HMCE and posts dormant accounts to companies house, but is, in fact, still actively trading, how does the scam eventually get found out?

Is it because UK banks have an obligation to check that companies that are actively trading are not putting in dormant accounts for example?

Whats with all the ridiculous posts asking for information on tax evasion in the last few days??

This is a contractor forum not one on how to break the law. Jesus!!

Well it's a fairly well known ruse that can be applied.

The trick is not to leave an audit trail. The agency/client can check your LTD details on Companies House(some do, some don't)
The agency is an audit trail. It is possible for you to be caught by an audit of an agency. In addition, the company bank account also creates a trail. Finally VAT also creates a trail. Also, when making up accounts an accountant will want to see your company bank statements.

To be successful as trading as a dormant company, best to avoid VAT where possible, provide personal bank details to an agent as opposed to a company bank account(it is not possible for the agency to check). Sometimes a good idea to use a partners bank details to make the trail colder. Then you can provide your certificate of incorporation etc to the agent.

Remember all of this is illegal, but there are a number of ways to get caught out. It's all a matter of Risk versus Reward.

[SallyPlanIT]

Can anyone answer this question? (and excuse me for possibly being a bit simple for asking it!)

If a limited company puts in nil CT, PAYE and VAT returns to HMCE and posts dormant accounts to companies house, but is, in fact, still actively trading, how does the scam eventually get found out?

Is it because UK banks have an obligation to check that companies that are actively trading are not putting in dormant accounts for example?

Director's responsibilities spring to mind...

[Darren@UptonAccountants]

!!

[MarillionFan]

LOL. Looks like the Accountants concur. We'll keep an eye out for your RIP Timbo face book page.

[northernladuk]

You didn't actually ask what laws you would be breaking doing this which would be a long an intersting read.

I can guess what your next topic on the forum would be though. Something along the lines of....

'I have free lodgings paid for by Her Majesty and the soap has just fallen on the floor. Do I pick it up? What is the worst that can happen to me. Advice required ASAP'

[Wanderer]

It's been going on for donkeys years. Setup a company, never file any paperwork then disappear after about 18 months.

Maybe they're a bit better at catching it these days, who knows.

[SueEllen]

It's been going on for donkeys years. Setup a company, never file any paperwork then disappear after about 18 months.

Maybe they're a bit better at catching it these days, who knows.

Depends on the industry sector the company is in.