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filing Dormant Company Accounts (DCA)

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

Reply to
Tom
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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!

Reply to
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

Reply to
Tom

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:

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Reply to
Alan Ferris

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

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. Don't use form DCA.

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

Tom wrote:

Reply to
mjt95

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

Reply to
PeterSaxton

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