What counts as a dormant company?
A company is dormant for Companies House purposes if it has had no significant accounting transactions during the accounting period. Significant transactions exclude things like the fee paid to Companies House for a confirmation statement or a change of company name, but include almost everything else, such as bank interest or supplier payments.
Many dormant companies are newly incorporated businesses not yet trading, or existing companies being kept in reserve, perhaps to protect a trading name or hold intellectual property.
What's involved in dormant company accounts filing?
Dormant company accounts filing involves preparing a simplified balance sheet showing that the company has had no significant transactions, and filing it with Companies House. Because there is nothing to report on trading, the accounts themselves are short, but they still need to be filed correctly and on time.
Our fee of £149 + VAT covers preparing and filing your dormant accounts together with your confirmation statement, plus the £50 Companies House confirmation statement fee, which we pass on at cost. Any Companies House fee shown is charged at today's rate; if Companies House changes it, we charge the new fee separately.
Do dormant companies need a Company Tax Return?
Usually not. If HMRC has confirmed your company is dormant, you typically don't need to file a Company Tax Return while it remains dormant. If HMRC hasn't been told, or the company was previously trading, you may still need to notify HMRC that the company has become dormant.
We check your position as part of the service, so if a Company Tax Return or notification to HMRC is needed, we'll flag it before your dormant accounts are filed.
Confirmation statements for dormant companies
Filing dormant company accounts doesn't remove the separate requirement to file a confirmation statement at least once every 12 months. The confirmation statement confirms your registered details are correct; the accounts confirm your financial position.
We prepare and file both together as part of this service, so you have one deadline to remember rather than two separate filings on different dates.
- Dormant company accounts confirm no significant transactions occurred
- Confirmation statement confirms your registered company details
- Both are filed together for £149 + VAT plus the £50 confirmation statement fee
What happens if my company starts trading?
Once your company starts trading, it stops being dormant and needs to notify HMRC that it's now active, usually within 3 months. From that point, you'll need full statutory accounts and a Company Tax Return covering the trading period.
If your company has started trading since its last dormant filing, let us know when you send your records; we can move you onto micro-entity or small company accounts filing as appropriate.
What if my dormant accounts are overdue?
We are an independent firm of Chartered Accountants, not Companies House or HMRC. Even a dormant company is subject to Companies House late filing penalties if its accounts are filed late, and can eventually be struck off the register for a persistently overdue confirmation statement.
We can prepare and file overdue dormant accounts and confirmation statements; the sooner we receive your details, the sooner we can bring your company's filings up to date.