Dormant Company- but pretrade expenses?

5
Found 30th Jun
How should I efficiently file accounts for a Ltd company which hasn't traded all year, however pre-trade expenses have occured from a personal bank acct not the business account (approx £1500)?

Is it more beneficial to file it as a Dormant Company?

Thanks
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Pre trade expenses are treated to have been incurred on the first day of incorporation.

On that basis. The company was not dormant and you will need to file accounts for a trading company.

Looks like you need an accountant.
Simba922 h, 29 m ago

Pre trade expenses are treated to have been incurred on the first day of …Pre trade expenses are treated to have been incurred on the first day of incorporation. On that basis. The company was not dormant and you will need to file accounts for a trading company. Looks like you need an accountant.


Sounds like Simba92 may know a thing or 2 but might I posit that an extension is the practical solution -

> We are talking about £300. Assuming the expenses are legit (and not bar bills.etc)

> Presumption that you are not VAT registered.

> Are you claiming pre trade (post formation) expenses in which case the business is not dormant unless you forget them

> Pre formation expenses (for 3 months prior to formation)? you need to file to register the loss but if you expect to trade in the next 6 months, notify an extension to 18 months

Depends on your business but an accountant will be £100 (no VAT) to £400 +VAT. Look online for a small business deal with online book keeping

You don't need an accountant to draft these very simple accounts. Pull down any small company filing from a similar entity and muddle through. So long as you are well intentioned and trying to manage costs in an embryonic business venture, HMRC wont shaft you. But don't claim stupid things and don't lie if thee is contact with them
Simba92 thank you, ccnp- what can I say you are my wealth of knowledge, as always thank you!

The expenses are post formation, and correct it is not vat registered, so I'll review what makes sense and whether I can do it myself or not. Thanks very much
ccnp51 m ago

Pull down any small company filing from a similar entity and muddle …Pull down any small company filing from a similar entity and muddle through.



I wouldn't recommend this.

If you have a friend who is an accountant, ask them to help you.
First period accounts are not a straight forward to prepare as you have to deal with pro-rating over 2 periods for CT, especially if using HMRCs web form to complete your CT returns.

He will also have to deal with share capital, DLA and potentially capital allowances.

For an accountant, yes it's a piece of cake. For a non accountant however...
Edited by: "Simba92" 30th Jun
Simba923 h, 6 m ago

I wouldn't recommend this. If you have a friend who is an accountant, ask …I wouldn't recommend this. If you have a friend who is an accountant, ask them to help you. First period accounts are not a straight forward to prepare as you have to deal with pro-rating over 2 periods for CT, especially if using HMRCs web form to complete your CT returns.He will also have to deal with share capital, DLA and potentially capital allowances. For an accountant, yes it's a piece of cake. For a non accountant however...


Thank you, I hear what you're saying- much appreciated
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