Dormant Company

Dormant according to Companies House

Your company is called dormant by Companies House if it’s had no ‘significant’ transactions in the financial year.
Significant transactions don’t include:

  • filing fees paid to Companies House
  • penalties for filing the accounts late
  • money paid for shares when the company was incorporated
  • More information can be found here.

Dormant for Corporation Tax purposes

HMRC views a dormant company as a company that’s not active, not liable for Corporation Tax or not within the charge to Corporation Tax. More information can be found here.

Wet signatures from client

Today a question cropped up – should accountant always take wet signatures from clients as their approval?

HMRC is of the opinion that it is not compulsory.

Client can give approval by electronic or non-electronic means.

Source Link: http://webarchive.nationalarchives.gov.uk/20140206222144/http://www.hmrc.gov.uk/ebu/2012-copyspec.pdf

 

Companies House

How many companies are registered with Companies House UK ?

Circa 3.8 million

How many new companies are formed each year ?

Circa 600,000

How many individual annual accounts Companies House is expecting each year ?

Circa 2.9 million

How many individual annual accounts are actually received by Companies house each year ?

Circa 2.7 million

i.e. 200k companies are late or do not file the accounts at all.

 

Source:
https://attendee.gotowebinar.com/recording/6419350587434964483

Increase in threshold for Small Companies Regime

What is it ?

 

A company in the UK qualifies as a Small Company if it fullfills two of the following three criterias:

 

Turnover – not more than £6.5m

Balance sheet total – not more than £3.26 m

Employee – not more than 50

 

UK Government has increased these limits to comply with EU Accounting Directive

via a new regulation

 

Turnover – not more than £10.2m

Balance sheet total – not more than £5.1 m

Employee – remain same at 50.

 

From when the rules change ?

Rules change for accounting period begining on or after 1 Jan 2016.

 

Why it is important ?

 

Small companies donot have to get their books audited.

 

This will reduce the administrative burden on lot of small companies and allow them to focus on their business.