scott4490 started this topic @ 17:26 on 23/05/2006
Hi everyone
2 threads in one day, i got a lot on my mind at the moment, but i only post a thread every few months so fair do's!
I set up a Ltd company last year in June for a consultancy business. I have been spending the past 12 months, researching, writing the business plan and products which are still ongoing now. God knows why i registered the company last year, maybe i thought things would happen quicker ....
Anyway, the way things are going, i am not going to make any dosh at all through this business until after June this year. So when my return goes in, it will be empty ....
What should i do? Would it be cheaper to wrap the company up until i am ready as it will cost me to get an accountant to do the return for me.
Im hopeless at Tax and NI etc (but have enrolled on a night course, starting in 2 weeks!).
Any help would greatly appreciated as always by me!
Thanks Scott
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Scott Simon Barlow
Sales Executive
Sysdia Solutions Ltd
'Delivering quality projects, at the right price, on time'
www.sysdia.com
RE: Tax returns for a Ltd company
James Smith | 23/05/2006 06:53 PM
It depends what you have done. If there are no transactions going through the limited company bank account then you could claim the company is dormant, and file dormant accounts. These are pretty easy to do. No need to close the company.
If there are transactions going through the limited company bank account for your set up costs etc you are probably not dormant and you should do it properly. It will unfortunately cost nearly as much as had you been a proper trading company, and sometimes more if your records are poor. Quite frankly if you try and wing it this year you are liable to get into more problems in the future as your amateur accounts will probably need restating (ie doing again when you appoint an accountant) and chances are you will have stuffed up your loss relief claim on the corporation tax return too which may well be wasted.
I am a great believer in education but I don’t think a night course is going to be much help, they tend to be on basic bookkeeping or running small payrolls, I would be very surprised if there was one about corp tax and stat accounts. To match the 10,000 hours+ training time of the average chartered accountant (at which point they are still considered green) they would have to run this course for about 100 years if it was 3 hours a week in term time!
Also for our lurkers (I know there of lots of you who like to read but not post ) this question highlights a point I always bang on about not forming a company until you have proven the business model - I get constant enquiries about this type of situation and no-one ever wants to pay what it costs to sort it all out! Sorry to use you as an example but lots of people get into this situation by being a bit keen on day one to get a company formed.
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Tax returns for a Ltd company
scott4490 | 23/05/2006 07:59 PM
Hi James
Thanks for your advice, very good. No worries about using me as an example, you are absolutely right!
Well, i haven't put anything through the company as their have been no costs really, yet! So nothing has gone through the banks, its a dormant account.
Who and how would i get my accounts filed dormant as i beleive they will have to be in June 2006, being a year after starting my company (fooliishly at that!)
Is this a service you could help me out with James? Should i approach you through your website?
Cheers (again!)
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Scott Simon Barlow
Sales Executive
Sysdia Solutions Ltd
'Delivering quality projects, at the right price, on time'
www.sysdia.com
