filing Dormant Company Accounts (DCA)


T

Tom

I'm trying to fill in my DCA (Dormant Company Accounts) form using web
filing. During the first accounting period (to end shortly) my company
has been entirely dormant - it has made no contracts nor received any
income.

However, in readiness for starting to trade later and in the next
accounting period I have opened a small business bank account. But to
receive free banking I needed to make a deposit from my own monies - I
assume that this is classed as a loan to the company by myself.

However I cannot see how this can worked into the DCA form as I assume
this sum (the money I have deposited in the business bank account) is
to be shown in the box "Cash in Bank and in Hand". As the company (at
initiation) only issued 1 share at £1 it really should only be showing
money assets of £1 - have I got this right ?

Any help and advice would be greatly appreciated.
Rgds., Roy
 
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A

Alan Ferris

I'm trying to fill in my DCA (Dormant Company Accounts) form using web
filing. During the first accounting period (to end shortly) my company
has been entirely dormant - it has made no contracts nor received any
income.

However, in readiness for starting to trade later and in the next
accounting period I have opened a small business bank account. But to
receive free banking I needed to make a deposit from my own monies - I
assume that this is classed as a loan to the company by myself.

However I cannot see how this can worked into the DCA form as I assume
this sum (the money I have deposited in the business bank account) is
to be shown in the box "Cash in Bank and in Hand". As the company (at
initiation) only issued 1 share at £1 it really should only be showing
money assets of £1 - have I got this right ?

Any help and advice would be greatly appreciated.
Rgds., Roy
Indeed it is wrong.

You also have a creditor, yourself. You should have credited the rest
of the money to your directors loan account.

Assets:
Bank £xxxx

Liabilities:
Creditors £xxxx - £1
Shares £1

Otherwise your balance sheet will not balance!

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
( ) . ( )
(")_(")
 
T

Tom

Thanks for the reply. Am I right in assuming that the simple Companies
House DCA (Dormant Accounts) form will not work in this circumstance
as there is no slot for such company liabilities (ie. a Director's
loan to the company)?
Or do I have to compile a very simple form of (one page) company
accounts?
Rgds., Roy
 
A

Alan Ferris

Thanks for the reply. Am I right in assuming that the simple Companies
House DCA (Dormant Accounts) form will not work in this circumstance
as there is no slot for such company liabilities (ie. a Director's
loan to the company)?
Or do I have to compile a very simple form of (one page) company
accounts?
Rgds., Roy
Please do not top post.

I have not used the online facilities for a dormant company. But IIRC
they still expect at least an abbreviated balance sheet to be filed.

Try this site:
http://www.companieshouse.gov.uk/about/gbhtml/gba3.shtml#five

--
Alan "Ferrit" Ferris

()'.'.'()
( (T) )
( ) . ( )
(")_(")
 
M

mjt95

When I was in practice, only companies with ABSOLUTELY NO TRANSACTIONS
WHATSOEVER were counted as "dormant".

Partly, this was to increase the fee (fees based on artifical or
unnecessary work are still chargeable, and clients still tend not to
argue about that).

But it was also to boilerplate their exposure to litigation. The rules
require judgement in their application and most English advisors are
trained to be cowards, so they will ALWAYS boilerplate their position
lest their find that the insurance company disagrees with their
judgement and withholds funding of defence costs.

I would prepare the more-than-one-page financial statements per
http://www.companieshouse.gov.uk/about/gbhtml/gba3.shtml#five . Don't
use form DCA.

Only incorporation agents with a stock of companies "on the shelf" would
normally use form DCA.

Thanks for the reply. Am I right in assuming that the simple Companies
House DCA (Dormant Accounts) form will not work in this circumstance
as there is no slot for such company liabilities (ie. a Director's
loan to the company)?
Or do I have to compile a very simple form of (one page) company
accounts?
Rgds., Roy
--

mjt

A supporter of http://www.taxpayersalliance.com/, fighting to stop the
government ripping off the taxpayer.

Tax cuts v public services? No! Tax cuts *for* better public services.
 
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P

PeterSaxton

When I was in practice, only companies with ABSOLUTELY NO TRANSACTIONS
WHATSOEVER were counted as "dormant".
The only transactions that are allowed without making the company non-
dormant are:

the issue of subscriber shares,
a fee paid to Companies House for a change of name,
a fee paid to Companies House for re-registration from private company
to public or vice versa,
a penalty paid to Companies House for failing to deliver accounts on
time, and
a fee paid to Companies House with the company's annual return.

A company which was authorised to carry on "regulated activities" by
the FSA or an insurance company cannot be dormant.

Regarding Tom's activities: his company is not dormant because of the
company bank account receipt.

The entries are:

Dr Bank
Cr Director's Loan

and

Dr Director's Loan
Cr Share Capital
 
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