Dormant or not trading yet? The expert accountant helps you with the filing of your accounts and tax return for your dormant company. The dormant company accounts service includes:
- Producing your dormant company accounts and nil Corporation Tax return; and
- Filing of your dormant accounts and company tax return online.
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 (i.e. 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 is a new limited company that has not yet started trading.
Trading includes buying, selling, renting property, advertising, employing someone or getting interest. HMRC has detailed guidance on what counts as dormant for Corporation Tax. In the meantime, you can tell 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 tell HMRC that your company is dormant over the phone or by post. Once you have told HMRC that your company is dormant (unless you receive a notice to deliver a company tax return), you do not need to file a company tax return.
DORMANT FOR COMPANIES HOUSE
Your limited company is called 'dormant' by Companies House if it has had no ‘significant’ transactions in 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 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 tell Companies House when you restart trading as the next set of non-dormant accounts filed will show that your company is no longer dormant. However, you must tell 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 complying with rules and regulations. If you wish to hire our firm to deal with your dormant company accounts, we will need the following information:
- Company's name and number;
- Accounting reference date (ARD);
- Authentication code; and
- Director's name.
If your company held a bank account during the year, we would need a copy of your bank statement to confirm that there were no transactions.
IDENTITY VERIFICATION REQUIREMENTS
Any questions about the dormant company service? Xcountant® offers a full range of accounting services with no hidden fees and charges. Our highly personalised services are designed to improve business efficiency and profitability.
Disclaimer: The information and opinions provided on this website are for general information purposes only and are not intended to constitute professional advice. 'Xcountant® | The expert accountant' is a company registered in England & Wales.
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