Dormant company with 2 directors. Remuneraton queston.

[era]

Can a company be dormant if it has 2 directors and they receive their pay as normal?
Company has no income of any sort.

[stek]

Here....

In essence, a dormant company is one that has had no significant accounting transactions during the accounting period. A significant accounting transaction is defined as one that the company should enter in its accounting records. Provided no such transactions occur then the company can have dormant company status

[TheCyclingProgrammer]

Yes, but corporation tax relief on the salary could potentially be queried by HMRC.

[era]

I found this:

Your company is usually dormant for Corporation Tax if it:
has stopped trading and has no other income, for example investments

it doesn't mention anything about expenses. e.g. director's pay.

[Scruff]

Can a company be dormant if it has 2 directors and they receive their pay as normal?
Company has no income of any sort.

In this case it's not dormant, just simply has no trading income.

[era]

In this case it's not dormant, just simply has no trading income.

Care to elaborate?
Trading ?= trading income

[stek]

I found this:



it doesn't mention anything about expenses. e.g. director's pay.

Expenses aren't directors' pay. Don't do anything until you've spoken to someone who knows what's they're doing, you don't seem to have a clue really and getting this wrong will cost you.

[stek]

Care to elaborate?
Trading ?= trading income

In essence, a dormant company is one that has had no significant accounting transactions during the accounting period. A significant accounting transaction is defined as one that the company should enter in its accounting records. Provided no such transactions occur then the company can have dormant company status.

[TheCyclingProgrammer]

Expenses aren't directors' pay.

Have to disagree. For the company, salaries are an expense.