If I create a new ltd company can I keep it dormant till the new tax year?

‘Dormant’ just means no activity (other than certain things like paying companies house fees). On this basis it is a reflection of the underlying activity of the company rather than something you choose.

You can have dormant accounts in perpetuity as far as I know, but it would be a waste of money as there are fees involved.

Yes you can. You will need to sort out accounts though plus tax references and make sure you file annual returns.

Any reason to do it now? Can incorporate a basic company in days and you get time to sort tax ref etc. So why not do it when you are ready.

It sounds like you haven’t done this before so I would strongly suggest getting a QUALIFIED accountant (ACCA, FCA , ACA , FCA) to help you and make sure this structure is appropriate for your circumstances from a tax and commercial perspective. They will charge but you will probably save that several times over in the longer term.

if you use a formation agent ensure whoever signs the paperwork resigns with immediate effect and your registered office is changed. I had a business 6 years ago and the dickedd who set my company up didn’t resign and didn’t change the registered office. When the accounts became due Companies house were sending reminders to an empty office and after three attempts they wound the company up.

The first I knew was when the bank froze my account and without me getting proof of the resgination of the guy who formed the company for me and certain documents I couldn’t claim back the maximum £3000 out of the £5000 I lost when the company was wound up. It all went to the treasury 😕

A harsh lesson in running a company poorly for me too

I believe you can’t earn anything – including bank account interest, why not start it up when needed?

yes but tax years don’t apply to companies, you pay tax in companies by reference to the company’s accounting period.

I use Danbro for my limited company – they have been very good. They’ll talk you through all the stuff you need to know.

Total breeze to set up I did on the morning I was starting a new job, +1 for using an accountacy agency, all the expenses, mileage, bank statements all filed on-line so no need to go see an accountant in person. I use a company in Bournemouth called intouch and I’m based in Scotland!

Email sent if you need further help

Yep – I have owned a Ltd company name for 9 years and it’s been dormant all that time – we trade as a partnership but want to keep the Ltd name for if/when we decide to trade as a ltd company.