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bigduckontax
bigduckontax, Accountant
Category: Tax
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Greetings, Please help to prepare letter to HMRC. I

Customer Question

Greetings,
Please help to prepare letter to HMRC.
I need to inform HMRC by fax about dormant period of our company. Company registered at 14 May and started doing business from 1 June. So we had dormant period from 14 May till 31 May. How this should be reported, any examples?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
This is a real don't panic situation, at this stage you have until this month before you need to worry. Your new company will prepare its first accounts at some date, 30 June 2015 seem an obvious one for your first year's trading. You will have to make a Corporation Tax (CT) return after that date. This return has to be done on line and you can have your accounts submission to Companies House made as part of the tax return providing the correct box is annotated.
Here is HMRC's advice on what needs to be done when a company is set up:
'New companies and organisations and Corporation Tax
When you set up a new company or organisation that's liable for Corporation Tax you must:
Tell HMRC your company or organisation is 'active' within three months of starting business activity.
Pay any Corporation Tax that's due on time and electronically.
File a Company Tax Return online for each Corporation Tax accounting period.'
Tell HMRC what is going on by means of a letter to your local tax office so that there can be no confusion as to what is going on. At the end of the first years trading they will send out a demand for the company to complete a tax return. In the meantime you should go on line and get the appropriate authorities and passwords for Government Gateway to enable you to work properly.
For a fullsome explanation have a look at 'Starting a company or organisation and Corporation Tax' on the web. I have just given you one method of getting CT started.
I do hope I have been of some help to you and pointed you in the right direction.
Customer: replied 3 years ago.

Hello Keith,

Sorry, I haven't told that we've already registered for Corporation Tax.

Previous justanswer expert told us that we need to report dormant period, as we had it from 14 May (registration date) till 1 June (started trading). So we have a dormant period which should be reported.

As far as I understood this can't be done online or by phone, and should be reported to our HMRC office by fax or mail.

I just would like to know how this should be written.

Expert:  bigduckontax replied 3 years ago.
On the companies headed notepaper, hopefully:
HMRC
[address of tax office]
Tax reference [if available]
Dear Sirs,
IN SOLVENTS LTD
Please note that the company incorporated on 14 May 2014 did not begin to trade until 1 June 2014. There is thus a dormant period 14 to 31 May 2014. The company intends to make uo its accounts to [31 may 2015].
Yours faithfully,
Secretary or Director [as appropriate].
That should suffice.
Customer: replied 3 years ago.

Thanks.

Does it necessary to sign and/or stamp this letteR?

Expert:  bigduckontax replied 3 years ago.
It is always a good idea to have such letters signed by either a director or the company secretary if there is one (Small companies no longer need to appoint secretaries [Companies Act, 2006]).
Letters to HMRC do need to have a postage stamp affixed unless you have a pre-paid envelope from the tax man.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.