Company Inactivity

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northernladuk replied

29 May 2024, 09:41
Originally posted by siddzy View Post

3. How do I treat (from an accounting perspective) interest income if company is dormant.

Be careful with the word dormant. Dormant is an official status which has to be applied for to be recognised as dormant. Just because it is doing nothing it does not mean it's dormant. It's confusing but it's key in this situation. Your company is not trading, you need to go through some steps to make it dormant.
https://www.gov.uk/dormant-company/d...orporation-tax

How much do you have in it? Is it not being used because you've gone inside for a period or because you've stopped working for one reason or another. Is there a reason to keep it open or not?
Leave a comment:
WTFH replied

28 May 2024, 21:40
Originally posted by siddzy View Post

Hi Team.

Apologies to ask a noddy question - however,

My trading company has ceased trading, and the only transactions expected are income from interest. This is from funds saved in Liquidity savings account that generates monthly interest.

Please can you advice

1. If my company should be treated as non-trading and I should take the steps required as such

2. Should I de-register from VAT scheme ?

3. How do I treat (from an accounting perspective) interest income if company is dormant.

Thanks

Many thanks

Poonam

1. Speak to your accountant. The company is not dormant if it is making money.
2. Speak to your accountant. The last time this userID was posting, it was winding up another company, and that’s not many years ago. Take a look into the rules around phoenixing.
3. How long has this company actually been running?
4. Why do I feel there’s a big chunk of story that we’re not being told?
Leave a comment:
siddzy started a topic Company Inactivity

28 May 2024, 20:25
Company Inactivity

Hi Team.

Apologies to ask a noddy question - however,

My trading company has ceased trading, and the only transactions expected are income from interest. This is from funds saved in Liquidity savings account that generates monthly interest.

Please can you advice

1. If my company should be treated as non-trading and I should take the steps required as such

2. Should I de-register from VAT scheme ?

3. How do I treat (from an accounting perspective) interest income if company is dormant.

Thanks

Many thanks

Poonam
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