DORMANT COMPANY ACCOUNTS & TAX RETURN

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Is your company dormant or not yet trading? Our team of accountants is here to assist you with the submission of your dormant company accounts and Corporation Tax return. Our comprehensive services for dormant companies include:

- Preparation of your dormant company accounts and nil Corporation Tax return; and

- Online filing of your dormant accounts and company tax return.

Your limited company may be considered ‘dormant’ if it is not trading (not currently carrying out any business) and does not have any other income, such as from investments.

DORMANT FOR CORPORATION TAX

Your company is usually considered dormant for Corporation Tax purposes if it has stopped trading and has no other income, or if it is a new limited company that has not yet started trading.

Trading includes activities such as buying, selling, renting property, advertising, employing someone, or receiving interest payments. HMRC provides detailed guidance on what counts as dormant for Corporation Tax. In the meantime, you can inform HMRC that your company is dormant for Corporation Tax if it has stopped trading and has no other income.

If you have never received a ‘Notice to Deliver a Company Tax Return’, you can inform HMRC that your company is dormant by phone or post. Once you have notified HMRC that your company is dormant (unless you receive a further notice to deliver a company tax return), you do not need to file a return.

DORMANT FOR COMPANIES HOUSE

Your limited company is considered dormant by Companies House if it has had no significant transactions during the financial year.

Significant transactions do not include:

- Filing fees paid to Companies House;

- Penalties for late filing of accounts; and

- Money paid for shares when the company was incorporated.

You must still file your confirmation statement and statutory accounts with Companies House even if your limited company is:

- Dormant for Corporation Tax; and/or

- Dormant according to Companies House.

RESTARTING A DORMANT COMPANY

You do not need to inform Companies House when you restart trading, as the next set of non-dormant accounts you file will show that your company is no longer dormant.

However, you must inform HMRC if your non-trading or dormant limited company starts trading again.

HELP & SUPPORT FOR STARTING A BUSINESS

Xcountant® is a London-based accounting firm helping small business owners save time and money while remaining compliant with HMRC and Companies House regulations.

If you would like us to handle your dormant company accounts, we will require the following details:

- Company name and registration number;

- Accounting reference date (ARD);

- Authentication code; and

- Director’s name.

If your company held a bank account during the year, we will need a copy of your bank statement to verify that no transactions took place during the period.

IDENTITY VERIFICATION REQUIREMENTS

Government regulations require us to confirm your identity. Please refer to our list of acceptable identification documents. Join Xcountant® now!