What is a ‘significant accounting transaction’?

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I’m trying to figure out whether or not I should register my limited company as dormant, but I’m struggling with the rules. A company can only be dormant if it isn’t accommodating significant accounting transactions, right? Okay. But what exactly qualifies as a significant transaction? Is there like an actual definition?

Cheers

Christopher Herbert

Answers

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The Companies Act 2006 (section 1169) defines a significant accounting transaction as one that must be entered in a company’s accounting records. This includes any kind of debit or credit in your business bank account, apart from:

  • From the first shareholders for their shares
  • Filing fees paid to Companies House for annual returns, changing the company name or company re-registration
  • Paying a filing penalty for the late submission of annual accounts

Please be aware that even paying bank charges and earning bank interest through your company bank account will be classed as significant accounting transactions.

a year ago
 

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