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Dormant Accounts

Dormant according to HMRC and Companies House

A dormant company is one that has been registered with Companies House but does not participate in any kind of business activity or earn any form of income. Therefore, HMRC finds it dormant (or inactive) for corporate tax purposes. It may be dormant from the date of its creation, or it may become inactive after a period of operation.

Your company is considered dormant by Companies House if it’s had no ‘significant’ transactions in the financial year.

Significant transactions don’t include:

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

All other transactions are considered significant, and if the company has any transaction (other than the three above), dormant accounts can’t be filed, and full accounts are required. See this HMRC page for more details

Dormant companies are required to prepare and submit dormant accounts to Companies House every year.