COM1042 - Accounting periods: company accounting periods: dormancy (action guide)
To deal with dormancy correspondence consider steps 1 - 19 below. The guide is presented as follows.
| Action | Steps |
|---|---|
Steps 1 - 3 |
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Steps 4 - 6 |
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Steps 7 - 8 |
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Steps 9 - 11 |
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Steps 12 - 14 |
|
Step 15 |
|
Community interest / association or Industrial Provident Society |
Step 16 |
Steps 17 - 19 |
Initial action
1. Use function VTPR (View Taxpayer Record) to check if the ‘enquiry in progress’ (EIP) signal has been set to ‘Y’ and where it has referred the correspondence to the caseworker responsible for the case.
2. Use function VPPD (View Payments and Postings Details) to check for any outstanding determination or penalties. Where there are and these are Tax Related refer the case to a CT Co-ordinator.
3. Review the correspondence or return and use function VTPR to review the Company Status field to find out the type of company it has come from.
Flat management company
4. Use function VTPR to check COTAX notes to see if an agreement has already been given to treat the company as dormant.
6. Where an agreement has not previously been agreed, write to the company and if they haven’t provided a copy of their most recent accounts ask them to so we can review their case.
Club / unincorporated association
8. Where the correspondence or return does not include any of the above, use function MAPD (Maintain AP Dates) to set a period of dormancy.
Dormant accounts
9. Where you receive a set of dormant accounts, use function DAPD (Display AP Details) to check the current status of the company.
10. Where the company is already noted as dormant, no further action is required unless a return has been filed. If a return has been filed you should:
- use function MAPD (Maintain AP Dates) to set up a live AP structure so that the return can be processed and then use function LRTN (Log Return) to log and capture the return as ‘e-filed return with manual intervention’ and record the self assessment
- use function NOTE (Case Notes) to show that a dormant return has been filed online
- leave the AP structure as live
11. Where the company is shown as live and a return has not been filed, use function MAPD to set a period of dormancy.
If the company provide an end date for the period of dormancy, use that date. Otherwise, set the end date to 31 May five years in the future.
Letter from company / agent
12. If the company says they have ceased to trade take the following action:
- if they have provided a date, use function MAPD (Maintain AP Dates) to set up a period of dormancy from the day after the date supplied
- if they have not provided a date, contact them, and ask for the date they ceased to trade then use function MAPD to set up a period of dormancy from the day after that date
14. If the company is newly incorporated and has not yet started to trade or will never trade, use function MAPD set up a period of dormancy from the date of incorporation.
Holding company
15. Where the correspondence or return is from a holding company, use function MAPD (Maintain AP Dates) to set up a period of dormancy, unless the letter suggests more complex case, refer the case to a Technical Caseworker to review.
Community interest / association or Industrial Provident Society
16. Where the correspondence or return is from a community interest, community association or Industrial Provident Society, use function MAPD (Maintain AP Dates) set up a period of dormancy, unless the letter suggests more complex case, refer the case to a Technical Caseworker to review.
Company no longer dormant
17. Where the correspondence states that the company is no longer dormant and has started to trade, use function MAPD (Maintain AP Dates) to set up live accounting periods from the dates given.
18. Where you have had to create a long period of account, use function RDAC (Record Filing Date Adjustment) to amend the filing date.
19. Use function ACTP (Amend CT Payer) to set the ‘S55 Satisfied’ signal to ‘Y’.