I am currently registered as a sole trader and recently registered a limited company along with business bank account on 2nd June 2016 as I planned to change from a sole trader to a limited company.
I have now decided to delay this transition for the foreseeable future, there has been no business activity done through the new limited company the only transactions in the new business bank account are 2 x £0.01 deposits from PayPal to confirm the account.
My question is can I simply declare this limited company dormant for the time being and continue as a sole trader until I choose to go Limited?
I understand Dormant company accounts still need to be filed each year.
If the Limited company remains dormant you can simply file “Dormant Company Accounts (DCA)” once per year to keep it active. If you file the DCA yourself (quite straightforward) on Companies House Web-Filing there’s no fee to pay. The only other thing you will need to do is ensure you file your Confirmation Statement once per year with Companies House, this is just a confirmation that the information at Companies House is correct.
If you receive any request from HMRC to file a CT600 tax return, simply return the payment slip part with NIL as the amount and mark on there that the company is dormant.
Do I need to contact Companies house now to inform them the company is dormant or will they just assume it is since I have not stated it has started trading or registered for corporation tax.