Company as Dormant with HMRC and filing Dormant Accounts
What are Dormant Accounts?
All companies in the UK must ensure they submit Accounts to Companies House on a yearly basis. Depending on whether your company has traded or not will depend on which Accounts you will need to file, if your company has not traded you will be required to file Dormant Company Accounts.
The Dormant Accounts provides Companies House with confirmation that your company has not traded.
If your company has traded you will be required to file trading accounts.
When do I need to file Dormant Accounts?
The Accounts of a company are usually due to be filed on the last date of the anniversary month – e.g. for a company incorporated on 10 May 2016, Accounts will be due for filing on the 31 May 2017. You will then have 9 months from the Accounts due date (31 May 2017) to file your Accounts on time. If it is not filed within this period your company will not be in good standing and could incur penalties.
It is also possible to change the Accounting Reference Date (Accounts due date). Please click here.
Why do I need to mark my company as Dormant?
A big benefit to you is that it will reduce your yearly tasks as you will not need to file accounts with HMRC usually for 5 years.
If your company has not traded you are required to mark your company as Dormant with HMRC. By marking your company as Dormant this will update HMRC’s records and you will not be required to file Company Tax Returns on a yearly basis.
All companies are automatically registered to receive a Company Tax Return reminder on a yearly basis. If you are receiving reminders this means that you are required to file a Tax Return. If your company is Dormant then you will not be required to file Tax Returns.
What happens if I don’t mark my company as Dormant?
If your company has not traded and you do not mark it as Dormant, HMRC will send you Company Tax Return reminders by post and they will request that you file a Company Tax Return.
Failure to file your Company Tax Return on time will result in your company receiving a penalty. Therefore, if you have a company that has not traded it is recommended that you mark it as Dormant with HMRC as soon as possible.