From the end of next month, dormant companies becoming active for corporation tax will be able to use HM Revenue & Customs’ (HMRC) Online Services to supply information.
From November 29th 2012, the form CT204 Review and form CT204 Active Company are set to be replaced by a single, online form. This will explain what companies need to do and the department will also be updating its online guidance for companies and agents.
The guidance will give business owners an overview of HMRC’s Corporation Tax Online, including setting up an online account and enrolling for the service, if not already enrolled, and what the service offers.
Corporation Tax Online can be used to file a Company Tax Return, to file statutory, abbreviated or dormant accounts to Companies House, to change an accounting period or to amend a Tax Return that has already been submitted.
In addition, if a firm currently uses or plans to use an accountant, agent or tax adviser to file its Company Tax Return, then the agent must be authorised to use Corporation Tax Online on the company’s behalf
If a new limited company or organisation is not yet active, meaning that it is not yet carrying on business activity or trading, the owner will need to tell HMRC when it does become active. While if a company or organisation has previously been active but is now dormant, the owner should contact their Corporation Tax Office.
HMRC may also deem an unincorporated organisation, such as a members’ club, dormant for Corporation Tax purposes if it is active or trading but is due to pay Corporation Tax of less than £100 for an accounting period.
Rob Chedzoy specialises within providing tax planning advice, support and guidance to owner-managed businesses.