New Dormant Company

Pete12

Good morning,

A new limited company has been created with the intention it is to be dormant for the foreseeable future:

1) When and how will Companies House be informed it is dormant?
2) When and how will HMRC be informed it is dormant?
3) Is there any advantage of having the year end 31/03/XX (as with sole trader because simple) or, under these circumstances would some other date be preferable?

Many thanks

Pete12

Monsoon

1. Annual return in a year's time, then DCA
2. Dormant Company insert with CT41G
3. Irrelevant if dormant.

Pete12

Monsoon,

Thank you.

3) I should have added - in the event the company is activated one day - is a 31/03/XX still simpler from the outset?

Pete12

Monsoon

Nope, no real difference

deanshepherd

A March year end is slightly simpler as you are not having to span tax years for different CT rates, capital allowance rules, looking at associated companies, splitting gains.

Salary and dividend figures should also tie up easier to end of year returns and personal tax returns.

Not that those are particularly great reasons for choosing a March year end.

Monsoon

I like companies with non March year ends - staggers the workload throughout the year

Pete12

Thank you both. Good points - from both the directors' and practitioner's point of view.

Pete12