Perhaps surprisingly, all limited companies – whether they’re trading or not – need to file annual accounts and confirmation statements in accordance with their due dates. If your company qualifies as dormant in the eyes of Companies House, you can file a specific set of accounts known as dormant accounts.
Dormant status does not affect the type of confirmation statement that you file – this remains the same for trading and non-trading companies.
Let’s explore the dormant status and dormant accounts a little further.
Is my company dormant?
This is where things can get a little confusing, as Companies House and HMRC have slightly different definitions of dormant.
The Companies House definition of dormant
You are dormant for Companies House if you have not had any ‘significant accounting transactions’ in a financial period. The below are not considered significant:
- Filing fees given to Companies House
- Penalty fees for late filing of accounts
- Share payments when the company was formed
If your company has had no ‘significant accounting transactions’ – and so is classified as dormant by Companies House – you qualify to file dormant accounts.
The HMRC definition of dormant
A limited company is generally considered dormant for HMRC, if:
- The company has ceased trading and doesn’t have any other income
- The company was recently formed and hasn’t started trading
HMRC may tell you via a letter if they view your company as dormant. Or, you can tell HMRC your company is dormant.
If you are considered dormant by HMRC, you will not need to pay Corporation Tax or file a Company Tax Return, unless instructed to do so by HMRC.
When are accounts due with Companies House?
A company’s first set of accounts (regular or dormant) are due 21 months after your company formation. Following accounts are then due on an annual basis.
It’s important that you don’t miss the deadline as Companies House will impose a penalty for late filing, with the size depending on how late you do file.
Filing your dormant accounts
If you are dormant, you can file the AA02 dormant company accounts form directly with Companies House or use Companies House WebFiling to file online. Alternatively, we offer a dormant accounts service, whereby our team of experts will take care of everything for you, ensuring no mistakes are made.
We hope you have found this post helpful. Please leave a comment if you have any questions.