Overview
A company may be dormant for Companies House, Corporation Tax or both, but the definitions and reporting consequences are not identical. A dormant company normally continues to file accounts and confirmation statements, and HMRC may need to be told that the company is not active.
Who this applies to
Companies that have never traded, have stopped trading, or are being retained for future use.
Key points
- Bank interest, fees or transactions can affect dormant status.
- Do not use the company bank account casually while treating the company as dormant.
- Restarting trade may require HMRC notification and new bookkeeping arrangements.
- Strike-off may be more suitable where the company is no longer needed, but only after liabilities and risks are reviewed.
Important dates and deadlines
Dormant accounts and confirmation statements remain due on the Companies House timetable. HMRC correspondence should be answered even where no Company Tax Return is expected.
Practical checklist
- Confirm whether any accounting transactions occurred.
- Check Companies House and HMRC status separately.
- File dormant accounts and confirmation statements.
- Tell the accountant before the company restarts activity.
Frequently asked questions
Does a dormant company need a bank account?
Not necessarily. Transactions through an account can complicate dormant status.
Can a dormant company be VAT registered?
The VAT position should be reviewed separately and may require deregistration or nil returns.
How Accountants4All can help
Support matched to your circumstances
Accountants4All can confirm the relevant dormant status, prepare dormant accounts and advise whether retaining or closing the company is appropriate.
Official sources and further reading
This page is general guidance and does not create an adviser/client relationship. Tax rules and official guidance can change. Use the official sources above and obtain advice based on your circumstances.
Read the full tax disclaimer