Dormant Company Accounts
What are dormant company accounts?
Dormant company accounts are simplified accounts that need to be filed with Companies House annually, and for as long as the company remains dormant.
Can I file dormant company accounts?
Companies House considers a company dormant if it has had no ‘significant accounting transactions’ in the relevant period. To be eligible to file dormant accounts, you must:
- Have not traded since your companies incorporation, or;
- Had no significant accounting transactions during the accounting period
- Be a company limited by shares or guarantee or;
- Have only made insignificant transactions, which include filing fees paid to Companies House, penalties for late filing of accounts and any money paid for shares when the company was first incorporated.
You are not eligible to file dormant company accounts if the company:
- Has received any income from trading goods or services
- Has paid an invoice
- Has paid employees
- Has paid dividends to its’ shareholders
How often are dormant company accounts required?
Accounts need to be filed for the company annually, this includes dormant company accounts.
How can I file dormant company accounts?
Purchase our dormant account filing service
A member of our friendly team will confirm that you are eligible to file dormant accounts
We will submit dormant accounts for your company once confirmation has been received and confirm their acceptance via email.
Ways To Buy
Form a company today
If you would like to order this service and form a company with us, you can choose from our list of formation packages.
Already have a company?
Sign up and register an account with us. Then import your company into your account and then purchase the service.
If you have an account with us, all you need to do is log in to your account and go to the shop tab to purchase the service.
Still Not Sure
If you’re still unsure whether this service is the perfect fit for you, reach out to us, and our committed support team will be there to help you every step of the way.
What is a dormant company?
A dormant company does not trade or receive an income but remains on the Companies House register. As it is still registered with Companies House, the company must still file annual accounts and a confirmation statement.
Do I need to file dormant accounts with HMRC and Companies House?
You will need to file dormant accounts with Companies House only. However, you will still need to inform HMRC that your company is dormant for Corporation Tax purposes. Once you have informed HMRC that your company is dormant, you will not have to file another Company Tax return unless:
- HMRC asks you to, or;
- Your company beings trading again
You do, however, need to inform Companies House every year that the company is still dormant by filing dormant accounts and filing your confirmation statement. You do not need to tell Companies House that your company is dormant until your accounts are due, but failure to do either of these within the set time frame will result in a fine and can result in your company being struck off the register.
Can an LLP file dormant accounts?
No, LLPs are not eligible to submit dormant accounts.
What information is needed to file dormant accounts?
To file dormant company accounts, you will need your company number and authentication code.
What is a significant accounting transaction?
A significant accounting transaction is one that needs to be entered into accounting records, for example payments made (unless these are paying Companies House filing fees or late filing penalties). Payments taken for shares by the initial shareholders are not considered significant transactions.
Can I use this service if I am new to 1st Choice Incorporations?
We are always happy to welcome new customers and our team will be on hand to assist you regardless of whether you registered your company with 1st Choice Incorporations.
How long does it take to file dormant accounts?
Your dormant company accounts will be filed once we receive confirmation that you are eligible to file dormant accounts. If this is received during working hours, they will be submitted the same day. If received outside of working hours, they will be filed at the earliest opportunity on the next working day.
We encourage you to file your accounts as early as possible to avoid any delays from Companies House as you will be liable for late filing penalties.
Is there a late filing penalty for dormant accounts?
Yes, failure to file statutory account (including dormant accounts) will result in a late filing penalty. Penalties start at £150 and increase depending on how late the accounts are filed and the type of company.
If you file your accounts late two years in a row, the penalty will be double. Legal action may also be taken against the company directors for failure to meet their responsibilities.