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Leger


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Stock bought for a different company
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My client is an IT installation specialist (Ltd Company) who set up another Company with a mate of his to sell LED lighting, which is currently dormant.  

I've just found out from my client, in response to a query I raised, that some stock has been bought for this company through the IT installation company

Am I right in thinking that this goes down to creditors-loans and the other company is responsible for repaying that loan?

Am I also right in thinking this makes the other company no longer dormant?



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John 

 

 

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abacus12345


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Hey,

I'd say it's a normal sale transaction. One creates a debtor, the other a creditor.

Is this the only sale for the dormant company? I'm inclined to say it is no longer dormant if it has transactions.

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Cheshire


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Hi John
You are correct in that the LED company is now no longer dormant.

Strictly speaking IT company should invoice the LED company.

Is the IT co VAT registered?

Yes IT is a creditor to LED, but do it via the invoice route and that keeps it clean.

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Leger


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Thanks Johnny and Joanne

Neither company is VAT registered.

There were about 5 or 6 transactions over the year.

 



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Cheshire


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Didnt even see Johnny post there - I mustve been typing whilst he was soooooper speedy!

Phew on the VAT!! Makes life easier.

Clients! At it again!

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
abacus12345


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Ha ha yes I must have been 1/1000 faster pressing reply :)

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Leger


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Cheshire wrote:


Clients! At it again!

 I wouldn't mind but I asked him 3 months ago whether there had been any trading on the LED Co and he said no, so I will now have to get a tax return done before the end of June for that one, and I've already filed dormant accounts with Co House.



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John 

 

 

 Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Cheshire


Master Book-keeper

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Leger wrote:
Cheshire wrote:


Clients! At it again!

 I wouldn't mind but I asked him 3 months ago whether there had been any trading on the LED Co and he said no, so I will now have to get a tax return done before the end of June for that one, and I've already filed dormant accounts with Co House.

 Oh eck! no



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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