Yes — you must file dormant accounts with Companies House, even if your company hasn’t traded. They are simpler than full accounts, but still mandatory. Companies House may strike off your company if you repeatedly fail to file accounts.
Why File Dormant Accounts?
- Confirm to Companies House that your company has not traded or received income.
- Help maintain legal compliance and avoid penalties.
- Keep your company on the register.
What Counts as Dormancy?
No significant accounting transactions during the financial year.
That means no trading, no income (sales, interest, dividends) and no bank transactions (apart from things like share issues or payment of filing fees)
Examples of permitted transactions that still count as dormant:
- Payment for shares on incorporation
- Payment of Companies House filing fees
Dormant for HMRC means no business activity and no taxable income.
Do You Need to Tell HMRC for Tax requirements
Yes — you must inform HMRC that your company is dormant. You can do this by writing to HMRC or using your HMRC Business Tax Account, HMRC may then confirm in writing that no tax return is required unless your status changes.
An important point here is if HMRC has issued a notice to deliver a Company Tax Return, you must still file one, even if dormant, unless HMRC withdraws the notice.
When Are Dormant Accounts Due?
Companies House Filing Deadlines:
- First accounts: Due 21 months after incorporation
- Subsequent years: Due 9 months after accounting year-end
Example:
- Company incorporated: 1 Jan 2024
- First accounts due: 30 Sept 2025 (21 months later)
Fines for Not Submitting Accounts and Tax returns
If you miss the filing deadline for accounts, Companies House will automatically issue a late filing penalty, even if dormant.
| Delay | Penalty |
|---|---|
| Up to 1 month | £150 |
| 1-3 months | £375 |
| 3-6 months | £750 |
| Over 6 months | £1,500 |
These penalties double if you’re late in 2 successive years.
What Happens If You Don’t Inform HMRC?
- HMRC may expect tax returns, even if no trading occurred.
- If you fail to file, HMRC can issue penalties:
- £100 initial penalty, increasing with further delay.
- Potential investigation or enforcement if non-compliance persists.
Summary Checklist
| Obligation | Required? | Submitted To | Notes |
|---|---|---|---|
| File Dormant Accounts | ✅ Yes | Companies House | Even if no trading |
| Inform HMRC of Dormancy | ✅ Yes | HMRC | Stops CT return demands |
| File Corporation Tax Return | ❌ Only if requested | HMRC | Unless HMRC agrees it’s not needed |
| File Confirmation Statement | ✅ Yes | Companies House | Not linked to trading status |
Risks of Not Filing
- Late penalties (from £150 up to £1,500+)
- Being struck off the register (company forcibly closed)
- HMRC investigations
- Director disqualification in extreme or repeated non-compliance
Even if your company is completely inactive, you must still keep it compliant:
- File dormant accounts with Companies House
- File a confirmation statement
- Inform HMRC it’s dormant (so you don’t get Corporation Tax return demands)