Registered as a Director of a new business within six months

[jafersadeq]

Dear Gurus,

To submit an evidence shows you are registered as a Director of a new business within six months of entering the category, we have to submit a printout of a Current Appointment Report, listing you as a director of a company. This evidence must show the date of your appointment as a director of a company, and the business must have been actively trading at the time of your appointment.

What do they mean with “the business must have been actively trading at the time of your appointment”

I started a new business before my entry date in 2 months, I started trading (investment in DL) after 9 months of entry date.
I want to understand about this point.
Thanks

[marcnath]

As long as you have not reported that the company is dormant or under liquidation, you show that the company is active. You would have informed HMRC that you are actively trading soon after you set up the company and would have got a corporation tax reference in response.

[jafersadeq]

As long as you have not reported that the company is dormant or under liquidation, you show that the company is active. You would have informed HMRC that you are actively trading soon after you set up the company and would have got a corporation tax reference in response.

Dear marcnath,
The company incorporation date 17/2/2015 , my appointment date is 17/2/2015 , on the same day of company incorporation. The company is active from the date of incorporation to present, I received CT41G after 2 weeks of incorporation date.
But my accountant wrote in Director's Report in the annual account:
The company incorporated on 17/2/2015 and commenced trading on 20/01/2016,
He means that I started depositing cash in the business account on 20/01/2016. This note is on the director's report.

[marcnath]

Bit incorrect of your accountant to make that statement (actually it is your statement as it is a report by the Directors) because that is not in line with the reality.
However, it is unlikely to cause any problems as a wrong statement in the accounts is not a disqualification for T1E extension.

[jafersadeq]

Bit incorrect of your accountant to make that statement (actually it is your statement as it is a report by the Directors) because that is not in line with the reality.
However, it is unlikely to cause any problems as a wrong statement in the accounts is not a disqualification for T1E extension.

Dear marcnath,
that statement is in the submitted accounts to HMRC and C.H.
Can I remove that statement from the accounts copy that I submit with my application to avoid any misunderstanding.
Please advise

[marcnath]

Yes, you can. You can also update HMRC and CH.
Even though none of that is really needed.

[jafersadeq]

Dear marcnath,

They also ask for company's filing history page.. Do they mean that they want to see if the company filed dormant or not?
Do they mean that "actively trading" to be not dormant only? or actively trading means : sell, buy, PAYE, and all business expenses and income?
What evidences do they need to prove the company has been actively trading during director appointment?
What about the new company incorporation and appointing the director on the same day, and the company start business activities after months.
Thanks

[marcnath]

Immigration rules don't define active trading specifically, so I expect them to fall back to the status as recorded in companies house and HMRC. There is no requirement for the business to have been doing transactions at the time of registration.

[jafersadeq]

Immigration rules don't define active trading specifically, so I expect them to fall back to the status as recorded in companies house and HMRC. There is no requirement for the business to have been doing transactions at the time of registration.

Dear marcnath and gurus,

I am really confused,

I did set up my company in Feb 2015 , my entry date Apr 2015 , open business account in Jan 2016 , invested feb 2016 , I filed full accounts to Companies House, not dormant.
But in CT600 the accountant started the trading date Jan 2016, and the CT600 was from Jan 2016 to Feb 2016, in that month I invested, spent..etc.
I think HMRC considered the company dormant from Feb 2015 to Jan 2016 and actively trading from Jan 2016 to Feb 2016, but nothing mentioned as dormant.
Many new business face this problem except the existing business.
I want to know my situation..Please
Thanks

[marcnath]

Don't get yourself worked up over this by trying to go too much into detail. I haven't come across a case where this has been a reason for rejection and I agree with you that quite a few people would be in the same situation. It took me 9 months or so to get started and I just registered myself as self-employed in the meanwhile but was not doing active business.

[jafersadeq]

Dear marcnath,
Dear moderators,


I want to understand the interpretation of the rule only:

(A printout of a Current Appointment Report, listing you as a director of a company or member of a limited liability partnership. This evidence must show the date of your appointment as a director of a company, or member of a partnership, and the business must have been actively trading at the time of your appointment)

I just want to know the meaning of the highlighted text.

And how the business is actively trading at startup, I think most new businesses have a gap between startup date and the trading date.

Thanks

[marcnath]

Not sure if you saw my earlier reply.

Immigration rules don't define active trading specifically, so I expect them to fall back to the status as recorded in companies house and HMRC. There is no requirement for the business to have been doing transactions at the time of registration.

The only people who can definitively give interpretations of immigration rules are the people from HO themselves and I don't think they are responding on this forum.

[zimba]

If the company was never dormant you should be fine. That is what active means

[jafersadeq]

If the company was never dormant you should be fine. That is what active means

Dear Zimba,

What I want to know is about this point.

There is a difference between the Companies House definition of a dormant company and HMRC.

According to Companies House, “a company is dormant if it has had no ‘significant accounting transactions’ during the accounting period”, the accounting period is the financial year of the limited company.
https://www.gov.uk/annual-accounts/micr ... -companies

But HMRC defines it differently: HMRC defines the dormant if it is dormant in corporation tax only.

https://www.gov.uk/first-company-accoun ... ter-set-up

There is a gap between incorporation date and trading date, HMRC consider it as a dormant. But it is not dormant according to Companies House, therefore I filed full accounts because I had many transactions before the end of the financial year. I wonder about this gap if it affects my case.

If you see my C.A.R you do not see anything about dormant or other things, it is active all the time.

Please advise

[zimba]

Dormant to Corporation Tax. All incorporated companies will be assumed active unless you tell HMRC otherwise

[jafersadeq]

Dormant to Corporation Tax. All incorporated companies will be assumed active unless you tell HMRC otherwise

Dear zimba88,

I did not file a dormant company, I just mentioned in CT600 that the tax assessment is from the trade date to the end of the financial year, that is it.
I filed full accounts to HMRc and C.H, and I paid tax because the profit.

Is it ok or not ?
Thanks

[zimba]

Yes