A dormant limited company must still file annual accounts with Companies House every year. PeekaBooks prepares and files dormant company accounts for a fixed £69, including submission to Companies House and HMRC.
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What is a dormant company?
For Companies House, a company is dormant if it has had no “significant accounting transactions” during its financial year – in other words, it hasn’t traded and no money has gone in or out of the business. A few transactions are ignored, such as paying Companies House fees, penalties for late filing, and money received for shares when the company was formed.
HMRC uses a similar idea for Corporation Tax: a company is usually dormant if it isn’t doing business, isn’t trading and isn’t receiving any income, such as interest.
Common examples include companies set up to protect a business name, companies registered ahead of a launch, and holding companies that don’t trade.
What’s included
- A check that your company qualifies as dormant
- Preparation of your dormant company accounts
- Submission to Companies House
- Submission to HMRC
- A reminder of what to do if your company starts trading
Do dormant companies need to file accounts?
Yes. Every limited company registered at Companies House – including dormant ones – must file:
- Annual accounts, due 9 months after the end of the financial year
- A confirmation statement, at least once every 12 months
Dormant accounts are much simpler than trading accounts, but missing the deadline triggers the same automatic penalties:
| How late your accounts are | Penalty (private company) |
|---|---|
| Up to 1 month | £150 |
| 1 to 3 months | £375 |
| 3 to 6 months | £750 |
| More than 6 months | £1,500 |
The penalty is doubled if your accounts are late two years in a row. Source: GOV.UK – penalties for late filing.
What if my company starts trading?
If a dormant company starts trading, you need to tell HMRC within 3 months so it can be registered for Corporation Tax. From then on, it will need full annual accounts rather than dormant accounts. Just let us know and we’ll guide you through it – our £99 small-turnover accounts are designed for exactly that stage.
Frequently asked questions
Does a dormant company need to file a tax return?
Not usually. If HMRC knows your company is dormant, you normally won’t need to file a Company Tax Return. However, if HMRC sends a “notice to deliver a Company Tax Return”, you must still file one, even if the company is dormant.
Can a dormant company have a bank account?
Yes. A dormant company can have a bank account, but if it earns interest or has other transactions, it may no longer count as dormant. We’ll check this for you before we file.
Is it cheaper to close my dormant company?
It depends on your plans. If you’ll never use the company, closing it (striking it off) can make sense. If you want to keep the name or plan to trade in future, keeping it dormant for £69 a year is usually simpler. We’re happy to talk it through.