I’ve registered a limited company about one year ago with the website The Formations Company.
I thought I would have started to trade immediately but I did not and after a year there have been no transactions. I haven’t registered for taxes and have done nothing with the company.
Do I have to file anything? Is my company dormant?
Yes your company is dormant – see below for a definition of what a dormant company means.
However you do still have reporting responsibilities for your company.
You need to file a Confirmation Statement, Dormant accounts with Companies House and tell HMRC that the company is dormant to avoid needing to file a corporation tax return and full accounts with them.
To be honest if you’re not trading and do not intend to then the simplest thing would be to close the company down, see here for how to do this:
What is a dormant company?
A company is dormant if it has had no ‘significant accounting transactions’ (one which should be entered into the company’s accounting records) during the accounting period. When determining whether a company is dormant you can disregard the following transactions:
- payment for shares taken by subscribers to the memorandum of association
- fees paid to the Registrar of Companies for a change of company name, the re-registration of a company and filing annual returns; and
- payment of a civil penalty for late filing of accounts.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.