A company that has stopped trading does not simply disappear from the Companies House register. It may be dormant, but some duties continue. The word “dormant” also has different meanings for Companies House and HMRC, so check both positions before assuming no more paperwork is needed.
Dormant for Companies House
Companies House generally considers a company dormant if it had no significant accounting transactions during its financial year. Some limited transactions, such as certain Companies House filing fees, are disregarded for this test. A dormant company still normally files annual accounts and a confirmation statement. Small companies that meet the conditions may be able to file dormant accounts.
Dormant for Corporation Tax
A company that has stopped trading and has no other income may be dormant for Corporation Tax. Tell HMRC if this is the case. After HMRC accepts the dormant position, the company will not normally need to file further Company Tax Returns unless HMRC asks for one or trading starts again. A return already requested for an earlier period may still need to be filed.
Being dormant for one organisation does not automatically settle the filing position with the other. Check both sets of records and retain evidence of when trading stopped.
Do VAT and payroll need attention?
If the company was VAT registered or employed people, review those registrations separately. A business that will not trade again may need to deregister for VAT; one planning to restart may have continuing VAT return obligations. A PAYE scheme may also need to be closed when the company stops employing people. Leaving these accounts open can create unnecessary notices and missed submissions.
Keep a simple annual checklist
Record the date trading stopped, outstanding invoices or expenses, bank interest, company assets and any remaining obligations. Set reminders for Companies House filings. If you decide to restart or close the company permanently, take advice on the right process before moving money or assets.
The Companies House dormant company guide and HMRC’s dormant company service explain the separate rules. AA&R Certified Accountants can review your company’s status and filings. Contact us if you want to keep the company without unnecessary surprises.
Related reading: Companies House Filing Changes 2028: What They Mean for UK Businesses.