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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3814
Experience:  FCCA FCMA CGMA ACIS
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I opened a limited company. The only thing I've done is pay

Customer Question

I opened a limited company. The only thing I've done is pay £2900 in legal fees and £4600 in software development fees. Nothing else. No revenue.
Is my company trading or can I list it as dormant?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Anwer and pleased to be able to help you with your question. I am of the opinion that you cannot. Business Finance states that: 'A dormant company is one that has had no significant accounting transactions during the accounting period. A significant accounting transaction is defined as one that the company should enter in its accounting records.' It would thus appear that the company is not dormant. Almost anything which would have to be reported in company accounts precudes dormant status. You could check with the Registrar of Companies, but the general guidance seems pretty clear. I am so sorry to have to rain on your parade.
Customer: replied 1 year ago.
Hi Keith,Thanks for the fast answer - very much appreciated. I'm about to file it now.May I ask another question regarding where to place these amounts, would that be classed as a separate question?
Expert:  bigduckontax replied 1 year ago.
I would simply list them as administrative expenses. Those headings in the computerized return are only used for statistical purposes anyway. Please be so kind as to rate me before you leave the Just Answer site.
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Customer: replied 1 year ago.
Thanks for helping me at this late hour, its very very much appreciated. Have a wonderful Christmas!
Expert:  bigduckontax replied 1 year ago.
Delighted to be of assistance. I am actually answering this from a time zone 7 hours ahead of GMT so it's early morning for me!
Thank you for your support and a Merry Christmas to you too..
Expert:  bigduckontax replied 1 year ago.
Thank you for your bonus too.
Customer: replied 1 year ago.
I'm glad its not late for you. Thanks again and it was a pleasure leaving a bonus!
Expert:  bigduckontax replied 1 year ago.
Thanks; have to respond or your question will keep on appearing on my listings and clutter up the place!

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