File Dormant Company Accounts With Companies House

If your UK limited company is not trading, it continues to have a legal responsibility to file dormant company accounts with Companies House. This is the case irrespective of whether your company is dormant for the purpose of Corporation Tax or not. Failure to comply with this could result in penalties, legal action, or the company’s removal from the register.

What Is a Dormant Company?

If a company has not done any “significant accounting transactions” during the financial year, the company is deemed dormant by Companies House. Importantly, some transactions are not considered major:

• Filing fees payment to Companies House
• Punishment for late filing of accounts
• Money was paid for shares at the time of incorporation of the company.

If your company has been inactive before, it can be again. Notably, this status is different from Corporation Tax dormancy. For tax purposes, you have to notify HMRC separately if your company is dormant.

Filing Deadlines

File dormant company accounts with Companies House is obligatory. Dormant companies must file:

Annual Accounts: Payable 9 months after the end of the financial year of the company.

Confirmation Statement: Falls due yearly on the anniversary of the incorporation of the company or the last confirmation statement filed.

There is a free and simple online facility available with Companies House called WebFiling, which businesses can use to file their dormant accounts. This service comes with embedded assurances that ensure that all required details are availed.

Penalties for Late Filing

Late filing of accounts leads to automatic penalties for a private company:

• Less than 1 month late: £150
• 1 to 3 months late: £375
• 3 to 6 months late: £750
• More than 6 months late: £1,500

Late filing of accounts leads to automatic penalties for a public company:

• Less than 1 month late: £750
• 1 to 3 months late: £1500
• 3 to 6 months late: £3000
• More than 6 months late: £7,500

These fines are to be incurred irrespective of the dormant status of the company. If accounts are not cleared, Companies House can take further actions, such as striking the company off the register.

For more details, check the government website:

Tips for Dormant Companies

• Use digital tools to record deadlines for files and avoid late filing of the same.
• Even if not active, keep basic company records up to date.
• If the company is no longer needed, you can go ahead and apply to strike it off the register. The procedure can be done online, and this is a cost-effective method to use when closing the company formally.
• Check for updates on the filing requirements and deadlines.

Conclusion

We have explained in this article the details regarding dormant companies and their filing penalties, and when there is a need to file dormant company accounts with Companies House. Dormant status will not release a company from its legal responsibilities. By complying with filing requirements and deadlines for filing, directors can ensure compliance and prevent such unfortunate penalties.

Disclaimer: All the information provided in this article file dormant company accounts with Companies House, including all the texts and graphics, is general. It does not intend to disregard any of the professional advice.