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 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 had 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,
- 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,
- 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.
Xero-Accountant Co.'s Dormant Company Accounts service includes:
- Producing your dormant company accounts and nil Corporation tax return,
- Filing of your dormant accounts and company tax return online.
- Company's name and number,
- Accounting reference date (ARD),
- Authentication code,
- Director's name.
If your company held a bank account during the year, we will need a copy of your bank statement to confirm that there were no transactions.
Government regulations mean we are required to confirm your identity. Find out more about acceptable forms of identification documents.
DORMANT COMPANY ACCOUNTS AND TAX RETURN
Xero-Accountant Co. is a fully digital accounting firm based in Hampstead, London. We provide online accounting and tax services for small businesses and individuals throughout the United Kingdom.
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We are small business accountants with the big picture in mind. We offer a wide range of online accounting and tax services that can be tailored to your requirements.
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