If you’ve registered a company in the UK but haven’t traded or received any income, you might assume you’re free from filing obligations. Unfortunately, that’s not how it works.
Dormant companies still have filing duties — and missing them can cost you unnecessary penalties. Here’s what every business owner needs to know.
🔍 What is a Dormant Company?
A company is considered dormant for Corporation Tax purposes if it has no significant transactions during the accounting period. This means:
- No trading
- No income
- No bank interest
- No business expenses (aside from things like Companies House filing fees)
💡 HMRC and Companies House define “dormant” slightly differently, so you must meet both criteria to avoid unnecessary filings.
🏢 Does a Dormant Company Need to File Accounts?
Yes. Even if your company is dormant, you must file annual accounts with Companies House. The type of accounts depends on your company’s size:
| Company Type | Filing Requirement |
|---|---|
| Dormant (small/micro) | Abridged or micro-entity dormant accounts |
Filing deadline: 9 months after your company’s financial year-end.
💼 Do Dormant Companies Need to File a CT600?
Only if HMRC sends a notice to deliver a tax return.
- If HMRC hasn’t asked, and your company is dormant, you don’t need to file a CT600.
- If HMRC has sent a notice, you must respond — even if the return is nil.
📌 You can inform HMRC that your company is dormant by writing to them or submitting a request via your Business Tax Account.
💰 What Are the Penalties for Not Filing?
- Companies House: Late accounts = £150 to £1,500 penalty (depending on delay length)
- HMRC: Failing to respond to a notice = £100+ fine (even if no tax is due)
✅ How TaxPound Can Help
Filing dormant accounts and returns is straightforward — but forgetting to do so can be costly.
At TaxPound, we file CT600 returns for dormant companies for just £99, and we can also assist with Companies House filings. This small cost saves you from unnecessary fines and keeps your business in good standing.
📌 Final Tips
- Don’t assume “no activity” means “no filing.”
- Check your mail — if HMRC has sent a notice, act on it.
- Let HMRC know your company is dormant to avoid future tax return notices.
