Make company dormant

[iburnell]

Hello. I have been offered a fixed term 12 month contract at my client that effectively means I become an employee on their payroll. Therefore I want to make my company dormant for 2016 (year end is 31/12). My accountant is quoting me £450 + vat to do year end accounts and for me to do nil vat returns - confused. I thought it was as simple as accountant sending a letter to companies house saying this company has not traded this year therefore nil account - surely no vat returns or anything since its not trading at all therefore simply nominal fee to send letter ??

[northernladuk]

Are you sure that doesn't include the rest of the years fees? Many accountants charge per year with monthly installments rather than per month. Or is this on top of that?

[iburnell]

No - my year end is 31/12 so if my client is willing I would continue invoicing up to the end of this year and then ask the accountant to do their normal y/e accounts for which they are paid surely ? and then make the company dormant in 2016 - 1 calendar year. There should be no outgoings or incomings therefore no trading so my assumption was there are no accountancy fees other than informing companies house - maybe I'm wrong but I had assumed this was a simple nominal fee

[VectraMan]

Time to learn how to do it yourself. I've never actually made my company dormant despite not using it for 2 years, but after deregistering from VAT and PAYE all I've had to do is fill out the free PDF once a year (with zeroes minus bank charges - but still a PITA) and do the online annual return (which takes 2 minutes). If it is dormant then it'll be even simpler, but you'll have to close the bank account and you won't be able to do anything at all with it.

[Dark Black]

Fixed term contact... really just don't - worst of both worlds.

I took one once out of desperation (post banking crisis) and binned it halfway though.. never again. A few weeks after I started I actually got asked to do a performance review including objectives for the following year.. despite the fact that I wouldn't be there the following year.. despite protesting to that effect I still "had" to do it... utter tulip, you couldn't make it up!

The permies treat you like a contractor, the managers treat you like a permie..

Seriously, run away... fast

[VectraMan]

Fixed term contact... really just don't - worst of both worlds.

I took one once out of desperation (post banking crisis) and binned it halfway though.. never again. A few weeks after I started I actually got asked to do a performance review including objectives for the following year.. despite the fact that I wouldn't be there the following year.. despite protesting to that effect I still "had" to do it... utter tulip, you couldn't make it up!

The permies treat you like a contractor, the managers treat you like a permie..

Seriously, run away... fast

I had an agent call me about one the other day. I said fine as long as the salary is equivalent to a contractor rate, which of course it isn't because they're looking to pay a permie level salary without the benefits. Better to try to push them into giving you a proper "permanent" job (which isn't permanent by any means) if you want to take it.

[Martin Scroatman]

I quite often make company dormant.

I just open my mouth and everyone around me falls asleep