Corporation Tax for RTM company

dw3305

I'm a director of the management company for a block of flats.  We employ managing agents who act as company secretary.  For at least the last ten years they have filed dormant company accounts with Companies House and have made no tax returns.

In the last couple of years we have built up reserves for future expenditure, and higher rates mean we now have non-trivial interest income.  For our year ended May 2023 £462.  For year ended May 2024 we are looking at over £1000.

Am I right in thinking that we did not have to send a return for 2023 because CT would be less than £100, but for 2024 we will?  And will we have to produce full financial accounts or can we just make a return of our interest income?  There is no other profit or loss - we do not own the freehold.

DullGreyGuy

Is that the company's money? Thought a sink fund had to be in a trust account and so it isn't the company's money. 

Interest on a trust account normally is the same and goes to the beneficiaries of the trust account, the leaseholders

dw3305

It's not a sinking fund as such.  We try to have a consistent monthly service charge and put anything over what is needed on deposit.  Last time the building needed painting we had to charge a supplement because the cost was more than we had budgeted for.  As leaseholders we are responsible for any surplus or deficit so the company cannot make a profit or loss from its normal activity, but the interest is surely taxable.  If you're suggesting that each leaseholder should be reporting their own proportion of the interest, that's not something I've ever heard of.