Dormant companies, corp tax bills and the definition of an accounting transaction

[Maslins]

Generally speaking it depends on whether you've got anything going through your P&L or not. Paying last year's corporation tax won't touch your P&L (credit bank, debit CT liability for double entry fans).

...so in short, if that's the only thing going through your bank account (and there's no accruing income/expenditure for the pedants) then yes I'd suggest the company will be dormant.

[captainham]

These may or may not help.

HM Revenue & Customs: Trading and non-trading for Corporation Tax explained
Annual Return And Accounting Rules For A UK Dormant Company

As Dan said, accounts and a 363 are still required at CH. And HMIT tends to want a CT return too.

Whether you wish to retain it as non trading I guess depends on your personal position and the assets sheltered within the company. If you are not a higher rate tax payer you might want to bleed the company of all it's retaqined profits through dividends over a number of years. Or you may be happy just to leave them there for the foreseeable future.

And also this:

Dormant limited companies: guidance on HMRC and Companies House rules for contractors

[ASB]

These may or may not help.

HM Revenue & Customs: Trading and non-trading for Corporation Tax explained
Annual Return And Accounting Rules For A UK Dormant Company

As Dan said, accounts and a 363 are still required at CH. And HMIT tends to want a CT return too.

Whether you wish to retain it as non trading I guess depends on your personal position and the assets sheltered within the company. If you are not a higher rate tax payer you might want to bleed the company of all it's retaqined profits through dividends over a number of years. Or you may be happy just to leave them there for the foreseeable future.

[ClearSky Accounting Dan]

A dormant company in the eyes of Companies House is one that has never traded since incorporation (these companies can file very simple Dormant Company Accounts to them). If the ltd co has previously traded (as seems to be the case with yours) then Companies House will still require full or abbreviated accounts to be submitted each year.

HMRC is slightly different - if the company is going to be dormant (and has previously traded) then you can write to HMRC to advise them of this. They should then not request accounts or Corporation tax return to be filed...although in my experience generally still do! Normally if still dormant after 3 years HMRC will write to you to reconfirm the company is still dormant.

In answer to your question - in HMRC's eyes simply paying the corporation tax won't affect the dormant status. It is down to whether the company is trading or not.

[CubeWizard]

Hello all,
neither HMRC nor Companies House seem to know the answer to this, so I'm hoping someone here does!
I am a contractor and I have a limited company with a financial y/e of 31/03.
I am considering taking a permanent job, in which case I will have to either close my company, or make it dormant.
Even if I decide to make it dormant, my corp tax bill for the 12/13 accounting year will have to be paid in the 13/14 accounting year.
Will this corp tax payment be defined as an accounting transaction? Therefore will my company then be defined as active in 13/14?
Or is there another way around this?
Thanks