concise
Customer Login | Search This Site:   Go  

What we do Register a company Company accounts Abbreviated accounts Types of business taxes Person with Significant Control for Limited Company Paying staff and PAYE Apply VAT numbers Check VAT numbers Fixed fee accounts About us Careers
 
General Business Quiz
1. Miss S Wilson served as director of a limited company for 10 days during the accounting year. Must this be disclosed in the director’s report?
 
Yes
No
Submit
 
Latest UK Business News : Trade truths for May?s vision of a ?Global Britain?      UK housing stock value soars to a record £6.8tn      Pension penalty on grandparents       Consultant McKinsey agrees new London HQ      May warns UK will walk away from ?bad deal?      

Dormant accounts

 

A company with no significant accounting transaction during the year is regarded as dormant company. As a dormant company, it will automatically be classified as small company under the Companies Act 2006 which its accounts will be exempted from audit.

A company that has not been traded since its incorporation is entitled to submit dormant account to Companies House.

Where the company is dormant since the end of the previous financial year, although there will be no trading results for the current period, a profit and loss accounts should still be prepared to show the previous year comparative figures.

It is important to note that certain companies are not eligible to prepare audit exempt accounts if they are either:

  • A public limited company (Plc)
  • A company that is carrying on an insurance market activity
  • A banking company
  • An authorized person under the Financial Services Act 1986.
  • A member of an ineligible group
  • The company is parent or a subsidiary a group, with the group turnover more than £6.5 million net or £7.8 million gross and group assets in excess of £3.26 million net or £3.9million gross

A dormant company must prepare audited financial statements if an audit has been requested by 10 percent or more of the members in writing at the company registered office.

The company must submit audited financial statements if its Articles and Association does not permit the company to dispense with an audit.

There is a late filing penalty for deliver accounts late even just by one day.

Concise Accountancy - UK London Chartered Accountants - Making company law simple to understand for businesses

 
Email This Page  Print This Page