Is it illegal for a company to trade whilst dormant ?

[Boo]

Hi,

Can anyone tell me whether it is illegal for a company to trade while it is dormant ? I know, obviously, that it it is wrong, and would never do so, but is it actually illegal ? And if so what is the offence, what are the penalties, and who is responsible for enforcing them ?

By "trade" I mean to enter into contracts and take money in exchange for goods and services. I.e. "trade"

Thanks,

Boo

[Maslins]

Hi,

Can anyone tell me whether it is illegal for a company to trade while it is dormant ? I know, obviously, that it it is wrong, and would never do so, but is it actually illegal ? And if so what is the offence, what are the penalties, and who is responsible for enforcing them ?

By "trade" I mean to enter into contracts and take money in exchange for goods and services. I.e. "trade"

Thanks,

Boo2

No idea what your plan is...but as soon as it has any income, it's no longer dormant.

Dormant's mainly a term for HMRC's benefit...so if the company starts to have income, and you don't tell HMRC about it, then yes, that's illegal, it's tax evasion.

[Boo]

.so if the company starts to have income, and you don't tell HMRC about it, then yes, that's illegal, it's tax evasion.

Thanks for your reply but I'm strictly interested in knowing whether it is specifically illegal to trade whilst the company is registered as "dormant" at Companies House, not the tax or other implications.

I have no plans btw

Boo

[Jessica@WhiteFieldTax]

Not aware of any specific illegality, other than registration for taxes.

However once the company trades it ceases to be dormant, so protectively you can't continue to file "dormant" accounts.