Contractor making a ltd company dormant after trading for 4 months

[northernladuk]

You are probably misunderstanding. Dormancy isn't a magic route to not incurring tax, it isn't a way out of escaping any tax liabilities already incurred when you were trading. If the company isn't trading, therefore isn't receiving any income, then it would not be racking up a tax bill, dormant or not.

This....

I'd love to know the OPs thinking behind that statement. Has he got a fundamental problem with his understanding of the whole financial picture?

To the OP. Could you explain which taxes you believe are affected by being dormant?

[chopper]

I thought I could declare Jan to date as dormant so I don't incur any tax as I have not traded.

You are probably misunderstanding. Dormancy isn't a magic route to not incurring tax, it isn't a way out of escaping any tax liabilities already incurred when you were trading. If the company isn't trading, therefore isn't receiving any income, then it would not be racking up a tax bill, dormant or not.

[magnum]

Why not keep your ltd co open and do a bit of consulting on the side to supplement your PHD?

I think that would be a good idea and the finance would go a long way in enabling me to fund conferences as well as field research. Many thanks for your input.

[PurpleGorilla]

Why not keep your ltd co open and do a bit of consulting on the side to supplement your PHD?

[MrMarkyMark]

I am with a big well know accounting firm which has been good at taking money from me, but the accountant is no good.

Some of them post on here, unsure whether yours does.

Worth giving them another call in any case. You should escalate the issue against the accountancy if you think the service is poor.

I'm with a large one (15 years now) and the service has always been excellent, although they were a lot smaller when I signed up.

[magnum]

Speak to your accountant again, you are paying him for a service aren't you ?

Getting Some Closure: How to shut down your limited company :: Contractor UK

Thank you for your response MrMarkyMark. I am with a big well know accounting firm which has been good at taking money from me, but the accountant is no good. My apologies for not stating that I am looking at contracting again in January 2016. I thought I could declare Jan to date as dormant so I don't incur any tax as I have not traded. Am a bit concerned about not being able to take money out of my business account in the meantime. Might as well get back on the phone and try and get something out of this accountant .............

[Kenny@MyAccountantFriend]

Your company cannot be shown as dormant in the current company year as it has traded.

Also it is unlikely to meet the criteria to enable dormant accounts in future years if funds remain in the company bank or the company holds any assets.

[MrMarkyMark]

1) Can I register my ltd company as dormant since January as I have not contracted and would this disadvantage me in any way 2) What do I do with the funds in my business account, am I allowed to take it out? I have not had a salary since I began contracting 3) I asked my accountant about making the company dormant a few months ago and they said they would charge me a hefty amount to do this, to be honest my accountant is not the most helpful. Please could you kindly assist and thank you.

Speak to your accountant again, you are paying him for a service aren't you ?

Getting Some Closure: How to shut down your limited company :: Contractor UK

[magnum]

Hello everyone, I am an IT contractor and registered my ltd company last August. I traded/contracted for 4 months. However I have not contracted since then and was wondering whether its worth making my ltd company dormant from Jan 2015 since I have not had a contract this year. I am currently doing my PhD which has taken up much of my time this year in research. My questions are 1) Can I register my ltd company as dormant since January as I have not contracted and would this disadvantage me in any way 2) What do I do with the funds in my business account, am I allowed to take it out? I have not had a salary since I began contracting 3) I asked my accountant about making the company dormant a few months ago and they said they would charge me a hefty amount to do this, to be honest my accountant is not the most helpful. Please could you kindly assist and thank you.