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Dormant status changes

#1

Dear All,
Can you please help to clarify the cases when a dormant company status changes?

I am a 50% shareholder of an inactive (non-trading) company since 2017 November 30th.
The company was incorporated in 2010, never traded as such, but has a bank account, DLA balance and bought registered office address services. When I joined the company, I paid 500 GBP to it, of which GBP1 went into the Share Capital, rest I assume is DLA.

I just recently read on the Gov site, that the above transactions are significant and even though the company is not trading and therefore not taxable, but it ceased to be dormant when it received money and spent money (aka the Balance sheet changed).

The Company submitted Dormant accounts the whole time.
In regard to this there are 2 issues:

  1. The accounts shown on the Companies House do not reflect the Bank account, nor the DLA - which, I think is incorrect. This is the case for years.

  2. I have not seen the full accounts for any period (including the one when I was already on board which is FY 17/18), because my partner says he lost them when his computer crashed.

  • Do you think that having submitted the Dormant accounts were still correct or allowed?
  • Do we need to send tax returns (and SA returns) to HMRC, if it was not supposed to be dormant?
  • Would we be fined for the full period, aka since 2010/11 if we send the Tax returns only now? (which would show losses carried forward anyways)
  • What can you recommend to solve this situation to avoid any penalties?

Many thanks in advance,
Christina

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#2

This definitely sounds like something on which you will need paid professional advice from an accountant, I wouldn’t want to act in a situation like this on advice from an unknown person on the internet. With an accountant you at least have recourse to their professional indemnity insurance if the advice turns out to be flawed.

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