Accounts for a dormant company UK

Yes, dormant companies need to file accounts,

Yes, you need an accountant if your company is dormant

Yes, you need let HMRC know that company is dormant

What happens if you don’t file company accounts? My tip is – do not try it 🙂 You will get a penalty from both authorities Companies House – Business register and HMRC – tax authority.

Did you get a penalty from Companies House? There is no chance to cancel this penalty.

Did you get a penalty from HMRC? We can appeal their decision and cancel the penalty fee.

2 duties – Confirmation of Statement and Annual Accounts

All limited companies incorporated in the UK shall annually file annual accounts and a confirmation statement to Companies House.

In order to ensure that your business remains active and current, it’s important to have no ‘significant’ transactions.

The above transactions don’t include:

web filling fees paid to Companies House

late filing penalties for accounts

share capital contributions upon establishing a company

You are not eligible to tell Companies House if you start trading again. Companies House will see that your company is trading upon filling the next Annual Accounts 🙂

If the company informed the tax authority called HMRC about non-activity – it doesn’t need to file a CT600 report and doesn’t need to pay Corporation Tax. However, even if an LTD company is dormant for HMRC purposes – it has a duty to file CS01 (Confirmation of Statement) and dormant annual report.

When Dormant Accounts?

Dormant accounts are accounts that are inactive and have had no financial transactions within a specific period of time. In the context of UK banking, a dormant account is an account that has had no activity for a certain number of years, typically between 3 and 5 years. If a bank account is classified as dormant, the bank may freeze the account, and the account holder may be unable to withdraw or transfer funds from the account until the account is reactivated. However, the account holder still retains ownership of the funds in the account.

Eesti Consulting will help you

If your dormant company has never traded, reach Eesti Consulting and hire us to file your dormant company accounts on time. We will inform you about the next steps. Do not forget to provide our company with your company number and an authentication code to manage your company through the Web filling dashboard. We can prepare dormant annual reports in both variants: paper form or electronic form. This is your choice – to file the Annual Report by post or by WebFilling. Companies House – UK business register – usually approves dormant company accounts a few hours.