Closing down & dormancy
Stop all significant transactions, settle liabilities, tell HMRC and file dormant accounts. What counts as dormant and what still has to be filed.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
Regulated by
Regulated & AML supervisor
AAT fellow member
Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityStop all significant accounting transactions, settle debts and close payroll and VAT registrations, then tell HMRC the company is dormant for corporation tax. File dormant accounts and a confirmation statement at Companies House each year.
What dormant actually means
The practical steps
Stop all significant accounting transactions, settle debts and close payroll and VAT registrations, then tell HMRC the company is dormant for corporation tax. File dormant accounts and a confirmation statement at Companies House each year.
Dormant for Companies House means no significant accounting transactions during the period. Payment for subscriber shares, certain filing fees and penalties are ignored, but a single bank charge, interest receipt or invoice ends dormancy and requires full accounts.
Dormant for HMRC means not trading or receiving income. HMRC can then make the company dormant for corporation tax so no CT600 is required until you tell them trading has restarted.
Collect debts and pay creditors, cancel direct debits and subscriptions, close or deregister PAYE and VAT, settle any final corporation tax, and consider whether to keep or close the bank account. Keeping an account open with charges will break dormancy.
Then write to HMRC or use the online service to report dormancy, and diarise the annual dormant accounts and confirmation statement. Both are still compulsory, and strike off action follows if they are missed.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes, it can hold assets, but transactions involving them generally break dormancy.
That is a transaction and typically breaks dormancy. Pay such costs personally.
Tell HMRC within three months of starting activity, restart payroll and VAT if needed, and file full accounts for that period.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
Talk to an accountant
Share your next deadline, accounting problem or growth question. We will reply with a clear next step and quote any technical work before it begins.
Chat with ACCOTAX on WhatsAppPick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run Monday to Friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
Four London offices
Work with us entirely online, or sit down with your accountant at whichever office suits you. Open Monday to Friday, 9:00am to 5:30pm. Office visits are by appointment only, so please book before coming in.
Free, no obligation
Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
