Dividends & Dormant Co's

[shutt666]

Am helping a friend with some bookwork.

Details are.

- Sole Director
- Co y/e was March 04 ( already late )
- Incorperated less than a year previously.
- Has filed co as dormant from 1/4/04 as he was made director of another co.
- Has taken minimal salary to be below thresholds.
- He has taken all cash as a dividend ( Only a few thousand ) but has done nothing other than spend cash.
- He has no CT as was below the £10k

He has let it get a bit messed up as it ran for less than a year and is reluctant to seek professional aid as he feels the cost will be more than any tax / penalties. Agreed to help on a no fee no responsibility basis, but any suggestions as to the implications of the dividend, ACT etc greatly appreciated.

Steve

[King_Maker]

There is probably no problem.

ACT was abolished from 6 April 1999.

No income tax due, unless he was a higher rate payer for the relevant tax year.

The dividend(s) might be ultra vires - but unless there are creditors involved, no-one is likely to be bothered as the amount(s) are (relatively) small.

Sounds like it is probably a good candidate for letting the Registrar strike it off.

[shutt666]

Many thanks, much appreciated.

It was all consultancy work so no creditors.
He will probably be happy to take his chances.

Steve