Dormant company accounts

When a company has not traded during the current year, i.e. it has had no incoming or outgoing financial transactions, it has received no income from other sources and there have been no significant accounting transactions, then it is considered to be dormant.

However, if the company has even one invoice that remains unpaid or bank interest or charges fall due within the accounting year, then these fall under the umbrella of significant accounting transactions meaning that the company will not be considered to be dormant.

A dormant company should not be confused with a non-trading company which, whilst not executing any type of business transactions during the financial year, may well have made certain other payments or received income and this could include, for example, rent, wages, banking and legal fees.

A dormant company, however, will have not have undertaken any significant accounting transactions during the year and, as such, will not be liable to pay corporation tax providing it is either:

  •   no longer trading and has no income
or
  •   a newly incorporated company that has yet to begin trading

DO YOU NEED TO FILE DORMANT COMPANY ACCOUNTS?

121 Company Formation provides a dormant account filing service for limited companies that are required to file accounts for a dormant company every year.

If we did not incorporate the company for you, in order to file these accounts at Companies House, we will require:

  •   The company name and number
  •   Share information – amount and value of paid/unpaid shares
  •   The company authentication code


If you need further clarification of the information we require, please email us at [email protected]

121 Company Formation can take no responsibility for any financial penalties levied by Companies House in respect of the late filing of dormant company accounts if you failed to allow three working days between the placing your order and the filing due date.

How much does the dormant account filing service cost?

The costs shown below for this annual service include the Companies House fee. We will automatically send you a reminder when the next filing date is imminent so that you will not forget to file your dormant company accounts.

Dormant Company Accounts Service: £100

FREQUENTLY ASKED QUESTIONS

A dormant company is either a newly incorporated company that has not yet begun to trade or a company that has undertaken no significant financial transactions during its accounting year.
Because there have been no financial transactions during the financial year, dormant company accounts are simplified versions of trading company accounts. As such, dormant company accounts are not required to include a profit and loss statement nor a director’s report.
As for all limited companies, accounts must be filed at Companies House every 12 months.
Providing we receive all the required information, your dormant company accounts can be prepared and then filed at Companies House within 24 hours.
Outstanding invoices, bank charges and interest payable are all considered to be significant accounting transactions which will deem the company to have traded within the financial year. However, any fees relating to Companies House matters, such as filing fees and late filing penalties, as well as payments for shares are excluded from the definition of significant accounting transactions.

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