Is My Company Dormant?
ACCOTAX - Accountants & Tax Consultants
Meets Your Business Needs Beyond Numbers.
If you're considering keeping your company dormant or wondering about the statutory requirements involved, this guide will provide you with essential information and clarify the responsibilities of a director when their company is dormant.
Q: I did not have any sales/revenue during the year. Is my company dormant?
A: Not necessarily. Even if your company did not generate any revenue or sales during the year, it might still be considered a trading company. To determine whether your company is dormant, you must assess its status at the end of the accounting year.
What is a Dormant Company?
A dormant company has no significant accounting transactions during the accounting period. These transactions are defined as those that must be entered in the company's accounting records. However, Companies House allows a few specific transactions that do not affect the dormant status:
Any other transactions, such as bank charges, earning interest on a bank account, or any buying and selling, will cause the company to lose its dormant status.
Things to Do When Your Company is Dormant
Even if your company is dormant, you still have statutory obligations to fulfill each year.
Company with NO trading history ever.
We only charge ￡50 plus VAT for the Confirmation Statement plus Companies House fee which is ￡34 & ￡100 plus VAT for the Dormant Accounts per year. Your yearly cost to keep the company dormant will be ￡184 plus VAT a year.
Company with trading history.
We only charge ￡50 plus VAT for the Confirmation Statement plus Companies House fee which is ￡34 & ￡200 plus VAT for the Dormant Accounts per year. Your yearly cost to keep the company dormant will be ￡284 plus VAT a year.
Want to learn about dormant companies? Please read this complete guide