Q: We have now accumulated nearly £20,000 in the bank. It is now time to earn some interest on it which will require paying Corporation Tax. I have telephoned and written to HMRC without success to find out how we initiate the process. How we should proceed?
FPRA Hon Consultant Gordon Whelan replies:
I am assuming that you are a dormant company and that you have no other sources of income and therefore do not file a Corporation Tax return for the company at present. If the interest you earn exceeds £100 then you should write to HMRC and state that you need to complete a Corporation Tax return and ask for the company’s UTR number to be sent to you. Once you have the UTR number then your return can then be completed at the same time as you finalise your year end accounts. If the interest earned in the financial year is less than £100 then there is no requirement for you to declare, or pay tax on, the interest earnt in the year.
[Submitted February 2020]