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 in the submission of your dormant company accounts and 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 (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 receiving interest payments. 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. Should you wish to engage our firm for handling 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 would need a copy of your bank statement to verify that no transactions took place during the period.

IDENTITY VERIFICATION REQUIREMENTS

Government regulations mean we are required to confirm your identity. Find out more about acceptable forms of identification documents. Join Xcountant® now!