Producing UK dormant accounts for a UK company in USD/EUR

We are asked periodically about producing dormant accounts in the UK for UK company where the accounts currency is in either USD or EUR. Other currencies can of course be used.

What constitutes a dormant company?

Simply put this is a company that has been no transactions on the bank statement apart from perhaps a small amount of interest. No Sales invoices raised and a nil VAT Return (assuming VAT registered and still registered). If a company is truly dormant for more than two years then it would make sense to de-register for VAT. Broadly speaking – zero activity.

The technical

It is a requirement within FRS 102 for the accounts to be prepared in the local currency of that entity. Local currency is defined as “currency of the primary economic environment in which it operates and generates cash flow”.

For example, if you have a UK subsidiary of an overseas parent company trading in USD, it could be expected that the local trading currency of the UK-based subsidiary will also be in USD inline with the parent company currency.

The production and submission

Most basic accounts production software will not allow you to prepare foreign currency dormant accounts (or active accounts). We have special software that will allow us to produce the dormant accounts in foreign currency.

If you do not wish to engage an accountant to produce dormant accounts in foreign currency and submit to both HMRC and Companies House, it is possible that you are able to manually submit paper accounts to these bodies.

These are some of the items needed to produce the accounts:

  • Company name
  • Trading name
  • Corporate status (dormant/active)
  • Trading address
  • Registered address
  • Registered number
  • Registration date
  • Tax reference/UTR (Unique Tax Reference)
  • Currency of company
  • Share capital
  • Company size – turnover – whether micro* or small company**
  • Business description
  • Principal activity
  • Year-end date.
  • Contacts – officers of the company; directors, company secretary, appointment date – if any left during the year we’re filing for.
  • Journal: ETB (extended trial balance) – either created from client’s version or we create one.

*micro FRS105: An entity that meets the size criteria for a micro-entity if it does not exceed at least two of the following three thresholds in relation to a financial year:

  • Turnover: £632,000 (adjusted for periods longer or shorter than 12 months)
  • Balance sheet: £316,000, and
  • Average number of employees: 10.

**small FRS 102: The standard was revised in 2015, and a new Section 1A was introduced for entities classified as small.

We can produce your dormant accounts in the UK for your UK entity. For further information relating to fees and production, please do get in touch.