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Posted Wed, 15 Feb 2023 14:33:20 GMT by Guido
Currently, I am self-employed. However, I also have a dormant LTD and need to understand how it works when it becomes active. Does advertising my dormant LTD cause it to become active both for the HMRC and Companieshouse? Is that so even if I pay for such publicity from my personal bank account instead of the LTD's one? And if so, are there any new practices to do apart from the Annual Account and Confirmation Statement? And do these stay the same as when the LTD was dormant, or do they become more difficult and complex to file by myself without the help of an accountant? In other words, how difficult is accountancy if done on my own for my LTD when this is active but not earning or spending? However, I have heard about pre-trading expenditure. How can I benefit from this arrangement? Sorry if some of those questions sound like coming from one with no experience in this field. But that's just how it is. Thanks in advance for any help.
Posted Tue, 21 Feb 2023 12:20:10 GMT by HMRC Admin 17

Hi,
 
For HMRC purposes, the company would still be treated as dormant until it actually commenced trading.

Pre trading expenditure such as advertising can be reclaimed in the first accounts produced by the company and
would not of itself lead to the company being treated as active for HMRC purposes. 

I am unable to comment on Companies House requirements, but suspect that they would need to be informed of any activity,
whether the company is dormant or not.

I regret that I am unable to advise as to whether you should file yourself or seek an accountant, that has to
be a decision that you make for yourself  .

Thank you.
Posted Wed, 22 Feb 2023 13:00:19 GMT by Guido
Many thanks! >Pre trading expenditure such as advertising >can be reclaimed in the first accounts produced >by the company Does that apply only if I pay for publicity using the LTD bank account, or can I use my personal bank account for that same purpose and then pass such expenses onto the LTD somehow?
Posted Mon, 27 Feb 2023 14:19:58 GMT by HMRC Admin 10
Hi
Provided that the expenditure satisfies the "wholly and exclusively" rule (guidance is available on our website - search BIM37000' onwards) it is entered into the company accounts as a regular business expense.
The payment is then added to your director's loan account - search 'Director's loans' on our website.
You can have the amount you have paid personally reimbursed at any time, which reduces the amount the company owes you through your director's loan account. 
Thankyou.
Regards.

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