A dormant company still has filing duties every year. This article sets out what is owed to Companies House and to HMRC, which of those Tax Optimiser files for you, and where to go for each step.
The yearly checklist
| What | Who to | Needed? | In Tax Optimiser |
|---|---|---|---|
| Dormant accounts | Companies House | Always, every year | Yes: step by step |
| Confirmation statement | Companies House | Always, every year | No. File it with Companies House |
| Company Tax Return (CT600) | HMRC | Only if HMRC has sent a notice to deliver one | Yes, as a nil return: Corporation Tax for a dormant company |
| Telling HMRC the company is dormant | HMRC | Once, when it becomes dormant or if it has never traded | No. See gov.uk |
The two bodies use the word differently. Companies House means a company with no significant accounting transactions in the year. HMRC means a company that is not active for Corporation Tax. A company can be dormant for one and not the other, so check each. Filing dormant company accounts explains the Companies House test and which payments are ignored.
Which situation are you in?
| Your company | Accounts for the year | Corporation Tax |
|---|---|---|
| Has never traded since incorporation | Dormant accounts, with Company has never traded ticked | Nothing unless HMRC asks. If it does, a nil CT600 |
| Used to trade, dormant for the whole of this year | Dormant accounts | Mark Corporation Tax as not required once HMRC has agreed the company is dormant |
| Traded for part of this year, then stopped | Normal micro-entity or small company accounts. Dormant accounts are not allowed | A return for the part of the year it was active |
| Dormant, but received bank interest or paid a bill | Normal accounts. It is not dormant for that year | A normal return |
| Started trading again | Normal accounts from that year | Tell HMRC within three months of starting |
Deadlines
- Accounts: nine months after the year end for a private company. A new company’s first accounts are due 21 months after incorporation. Being dormant does not extend this, and the late filing penalty is the same. See Companies House filing deadlines.
- CT600, if HMRC has asked for one: twelve months after the end of the period.
- Confirmation statement: within 14 days of the end of each review period.
How it works in Tax Optimiser
- Add the company and create the accounting period, as for any company.
- Enter the balance sheet in the trial balance. For most dormant companies that is the share capital and whatever it is held as.
- Mark the period as dormant. This switches the accounts to the dormant wording and the period to the Dormant Accounts Wizard.
- Run the wizard: check the company details, confirm it was dormant all year, and submit to Companies House.
- Deal with Corporation Tax: mark it as not required, or file a nil return if HMRC wants one.
Steps 1 to 4 are shown screen by screen in Filing dormant accounts step by step.
What it costs
A dormant period is charged at the dormant rate, which is lower than the standard rate, and one payment covers both the Companies House accounts and a CT600 for that period.
- A company filing for itself pays when it reaches the Submit step: Paying to submit a period.
- An accountant firm uses one dormant credit: Credits for accountant firms.
Mark the period as dormant before you reach the Submit step. The rate is fixed at the moment the fee is paid or the credit is used.
Frequently asked questions
Does a dormant company still have to file accounts every year?
Yes. Every company on the register files annual accounts and a confirmation statement, dormant or not. The accounts are just shorter.
Do I have to file a CT600 for a dormant company?
Only if HMRC has sent a notice to deliver a Company Tax Return for the period. If it has, you must file even though nothing is due. If HMRC has accepted that the company is dormant it stops sending notices.
Can Tax Optimiser file the confirmation statement?
No. It files annual accounts and Corporation Tax returns. The confirmation statement is filed directly with Companies House.
My company has a bank account but nothing went through it. Is it dormant?
Yes, as long as there were no transactions at all: no interest, no charges, no payments. A single penny of bank interest makes it active for that year.
What if I am not sure whether HMRC thinks the company is dormant?
Check the company’s HMRC online account or any letters from HMRC. A “notice to deliver a Company Tax Return” means a return is expected.