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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16324
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I was wandering if you could help me. I set up a limited

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Hello there
JA: Hello. How can I help?
Customer: I was wandering if you could help me. I set up a limited company with a friend in December 2018. We are not admin savvy and run a mil at the word tax return. I've realised that we need to pay corporation tax, I think... but we haven't really began trading. We own a production company, but we have never made any money from it. We have a business bank account and the only money that has come into the account, is people giving us money to make 2 short films, and 2 successful Kickstarter campaigns of about £18,000 total. Does that constitute trading?
JA: Which tax year are you filing for?
Customer: Well I guess the last one, 19/20? I think we're late, but when you look us up on company's house, it doesn't say we have any penalties and it says our next accounts are due in Sept 2020, but I thought tax needs to be submitted in January?
JA: Anything else you want the Accountant to know before I connect you?
Customer: no, please connect me, thank you

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Customer: replied 1 year ago.
Can my company be considered dormant?
Customer: replied 1 year ago.
I appreciate your offer to help me out further, but I'm not in a place to spend £44 at the moment, really sorry!
Customer: replied 1 year ago.
I would really appreciate just a little guidance on the matter

Hi

Yes that constitutes trading as you have been paid to undertake work so you should have submitted accounts and returns so for start date Dec 2018 the return should have been with Companies HOuse and HMRC Aug 2020

So you need to get ready for that file date and enagage and accountant f you do not know what you are doing

YOur company is NOT dormant

Jan tax return dedalines are your own personal tax returns - they are issued afetr tax year end so 6th April and you have until following 31st Jan if you file online

Thanks

Sam

Customer: replied 1 year ago.
Okay, that's very reassuring. So if our business started trading in 2018, I have not missed any deadlines for corporation tax submission yet? As you say, my first one is due in August?So just to confirm Business tax and personal/self employment tax operate on different timelines?How is corporation tax calculated? is it a percentage of the amount that arrived in our account?
Customer: replied 1 year ago.
Thank you Sam

Hi

No none at all yet

Yes Corporation tx accounts are from date trading started for one year so Dec 2018 to day before In Dec 2018 then you have until 9 months after year ends to submit to companies house and HMRC but note IF you owe Corporation tax that has to be paid no later then 9 months after accounts year ends

Then any saalry you draw runs from 6th April to 5th April each year - and that information along with any other personal income is included on your personal self assessment tax returns which runs from 6th April one year to 5th April the next

I really do advise you get an accountant as its imperative you stick to these deadlines and submit accurate information as you dont seem to know anything about LImited Companies and am not sure whay you didnt get trade as a partnership - much simpler

But I have added a link here that outlines the basic that you need

https://www.gov.uk/prepare-file-annual-accounts-for-limited-company

and tax rates 19% link here https://www.gov.uk/corporation-tax-rates

Thanks

Sam

Customer: replied 1 year ago.
Thank you very much Sam!

Hi

You are welcome and good luck with the business

If you could take the time out to rate me for the level of service I have provided it would be very much appreciated

Thanks

Sam

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