Dormant Financial Accounts

Dormant Financial Accounts

Our Dormant Financial Accounts Service is a bespoke service and is only available by contacting us at customerservices@primeformation.co.uk or calling us on 0333 533 0264.

A Private Limited Company, LLP, Charity or Charitable Company and Community Interest Company [CIC] are regarded as dormant if it has had no significant transactions within the accounting period. A significant accounting transaction is recorded in the accounting records of the company may well indicate that the company was trading in the accounting period. Such transactions may include buying and selling of goods in the ordinary course of business, buying assets to run the business. Transactions with debtors, creditors and lenders.

However, the transactions detailed below cannot be regarded as significant accounting transactions. Dormant companies may record:

• Payment for shares taken by subscribers to the Memorandum of Association
• Fees paid to the Registrar of Companies for filing annual returns, change of company details
• Payment of a civil penalty

A dormant company is expected to keep accounting records. It is not anticipated that a dormant company would have to maintain most of the records detailed below. Accounting records among other things must contain:

• Entries detailing all money received and expended by the company. Records of income and expenditure of the company must be adequately kept. The records kept form the basis for preparing the profit and loss account
• A record of the Assets and Liabilities of the company forming the components of the balance sheet
• Statements of Stock held by the company at the end of each financial period
• Statements of stock takings upon which the Statements of Stock were prepared
• Other than retail trade any other goods sold and purchased with the attendant list of the goods and the buyers and sellers.

Accounts prepared must be based on the sufficiency and adequacy of records kept. The accounts and returns made must disclose the financial position and performance of the company and comply with the requirements of the Companies Act 2006 and the UK issued Financial Reporting Standards [FRS] or International Accounting Standards [IAS]

If you are a director of a limited company or a member of an LLP you must prepare accounts for each financial year.

At Prime Formations, we have designed our Dormant Company Account Service to help you fulfil your responsibilities of delivering accounts to Companies, HMRC and other regulatory bodies such as the Charity Commission.

Companies House Paper Form AA02 can be downloaded and completed for companies that have never traded from incorporation.

What does a Set of Dormant Accounts include?

A set of Dormant Accounts must include the following:

• An Abbreviated Balance Sheet signed by a named director with his printed name inserted on the statement on behalf of the Board of Directors
• Directors Report to Members
• Any previous year’s figures for comparison
• Notes to the accounts providing detailed information of the breakdown of the figures in the balance sheet and the reasons for adopting the various policies and standards used in preparing the accounts

Accounts prepared must be based on the sufficiency and adequacy of records kept. The accounts and returns made must disclose the financial position and performance of the company and comply with the requirements of the Companies Act 2006 and the UK issued Financial Reporting Standards [FRS] or International Accounting Standards [IAS]

If you are a director of a limited company or a member of an LLP you must prepare accounts for each financial year.

At Prime Formations, we have designed our Dormant Company Account Service to help you fulfil your responsibilities of delivering accounts to Companies, HMRC and other regulatory bodies such as the Charity Commission.

Companies House Paper Form AA02 can be downloaded and completed for companies that have never traded from incorporation.

What does a Set of Dormant Accounts include?

A set of Dormant Accounts must include the following:

• An Abbreviated Balance Sheet signed by a named director with his printed name inserted on the statement on behalf of the Board of Directors
• Directors Report to Members
• Any previous year’s figures for comparison
• Notes to the accounts providing detailed information of the breakdown of the figures in the balance sheet and the reasons for adopting the various policies and standards used in preparing the accounts

A Dormant Company is required to deliver Dormant Company Accounts to Companies House within 9 months after the Accounting Reference Date and for newly formed Companies- accounts must be delivered within 21 months from incorporation date. The filing deadlines are entrenched in the Companies Act 2006 and must be strictly complied with to avoid a civil penalty starting at a minimum fine of £150 and graduating to £1,500 or more on a time defined basis. It is a criminal offence not to file your dormant company accounts within the stipulated filing deadlines.

Dormant Company Accounts Service

Once you place an order for this service, we would send by email an Accounts Production Schedule of Requests detailing what we require in order to produce your dormant financial accounts. During the process of the Accounts Production, we would liaise with you by email to ensure all accounting queries are fully answered, any missing document notified to you and supplied and any unclear transactions appropriately dealt with. Once the accounts are produced, we would arrange an appropriate time to chat online about your accounts and finalise the same with you. We do not expect any tax liability to arise therefrom however a dormant company may make a loss and the implications of the same for your Corporation Tax filing were registered for this purpose.

Please note that the fee charged is strictly for the Dormant Company Accounts Production Service. We charge separately for Corporation Tax filing.

Regular Service £49.89 plus VAT

If we receive all answers to our requests the Dormant Company Accounts would be available for Companies House submission within 10 working days and our charge for this service is £49.89 plus VAT. Please note that this service is for Dormant Companies, LLPs, CICs and Charitable Companies with a zero turnover.

To ensure you do not fall into the Companies House penalty regime you must deliver your accounts to us at least 2 months before your filing deadline which is normally 9 months after your accounting reference date.

Fast Track Service £99.89 Plus VAT

If we receive all answers to our requests the financial accounts would be available for Companies House submission within 1 working day or 24 hours and our charge for this service is £99.89 plus VAT. Please note that this service is for dormant companies, LLPs, CICs and Charitable Companies with a zero turnover.

To ensure you do not fall into the Companies House penalty regime you must deliver your accounts to us at least 15 working days before your filing deadline which is normally 9 months after your accounting reference period.