Filing Accounts For A Dormant Limited Company

The total number of companies registered with Companies House was 4,716,126 as of the end of March 2021. This includes those that were being dissolved or liquidated at the time and any considered as dormant limited companies ...

Whether they trade or not, all limited companies must file annual accounts and a confirmation statement every year. And this requirement includes any dormant companies too.

"A company is dormant if it isn't doing business!"

A dormant company is treated differently for Corporation Tax returns to HMRC and annual filings to Companies House. You can tell HMRC that your company is dormant and they won't expect any more tax returns unless they request it. However, Companies House confirmation statements must be sent in, as should annual accounts be.

A company isn't considered to be 'doing business' if transactions for the following appear on its annual accounts:

- filing fees paid to Companies House
- penalties for late filing of accounts
- money paid for shares when the company was incorporated

A dormant company that is considered 'small' does not need an auditors report either!

A company director is legally responsible for the business and ensuring accounts and reports are prepared and filed on time and the accuracy must be spot on too. However, one benefit of filing for dormant accounts is that it's free as long as you file on time and don't incur any penalties.

"Failure to comply could lead to fines and even a director being struck off!"

A dormant company can file confirmation statements online for just £13 and you don't need to tell Companies House if you restart trading as the next set of annual accounts will show them the company is no longer dormant.

If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.