How to Prepare Dormant Company Accounts

If your UK limited company is not actively trading, you may be classed as dormant.
While your filing responsibilities are reduced, you still need to file dormant company accounts annually to remain in good standing.

In this article, we explain what a dormant company is, how to prepare the correct accounts, and how Dragonfly Associates supports clients with ongoing compliance—subject to agreement.

What Is a Dormant Company?

A company is considered dormant by Companies House if it has had no “significant accounting transactions” during the financial year.

This means:

• No income or sales
• No bank interest or expenses
• No employee wages or trading activity

Minor filings such as Companies House fees or share allotments may still occur without affecting dormant status.

Dormant status is different from being “closed” or “dissolved”—it simply means the company is not currently trading.

Who Uses Dormant Companies?

Dormant companies are commonly used for:

• Holding intellectual property or trademarks
• Reserving a company name
• Businesses not yet ready to launch
• Startups pausing operations
• Holding or investment entities

We support founders and directors who wish to maintain a company shell for future activity or branding purposes.

What Must Be Filed?

Even if your company is dormant, you must still file:

• Dormant company accounts (once per year)
• A Confirmation Statement (annually)
• Corporation Tax return (only if HMRC requests it)

Failure to file these documents can result in penalties or strike-off proceedings. We help clients track and file dormant accounts on time.

What Do Dormant Accounts Include?

Dormant company accounts are much simpler than full statutory accounts. They typically include:

• A balance sheet marked as “dormant”
• A statement confirming the company has been dormant
• A director’s signature

No profit & loss account, auditor’s report, or notes are required (unless your company was previously active or no longer qualifies for dormancy).

We prepare these accounts and file them electronically on behalf of clients under our compliance packages.

Corporation Tax for Dormant Companies

If your company is truly dormant and has informed HMRC, you typically do not need to file a Corporation Tax return. However:

• HMRC must be notified in writing of dormancy
• If HMRC believes your company is active, they may still issue filing notices

We help clients notify HMRC of dormancy and respond to any queries, subject to agreement.

Changing From Active to Dormant

If your company has been trading and is becoming dormant, you should:

• Complete all final filings (accounts, CT600)
• Pay any outstanding taxes
• Inform HMRC that the company is no longer trading
• Cancel PAYE and VAT (if applicable)

We guide clients through this transition to ensure all obligations are met.

Frequently Asked Questions

Can I keep a dormant company forever?

Yes, provided you continue to file accounts and Confirmation Statements on time and pay any applicable fees.

Do I need an accountant to file dormant accounts?

Not legally—but professional filing ensures accuracy, avoids penalties, and saves time. We file dormant accounts for clients using our annual compliance services.

Can I make the company active again later?

Yes. You can resume trading at any time. Just notify HMRC and begin submitting regular accounts and Corporation Tax returns from that point.

Keep Your Dormant Company Compliant

Just because your company is dormant doesn’t mean your responsibilities disappear. Filing accurate dormant accounts on time keeps your company in good legal standing and ready to reactivate when needed.

Dragonfly Associates provides annual dormant filing, Companies House updates, and HMRC notifications—available under agreed compliance plans.

To maintain your dormant company correctly and avoid penalties, contact our team today.