Running a company in the UK involves certain statutory obligations—even if the company is not actively trading. One such obligation is to submit annual accounts to Companies House, even for dormant companies. Fortunately, the process for filing dormant accounts is considerably more straightforward than for active businesses.
This article breaks down the essential requirements for dormant companies, helping directors understand how to file Company Accounts correctly and on time.
What Is a Dormant Company?
A company is considered “dormant” by Companies House if it has had no ‘significant accounting transactions’ during the financial year. This means the company has not traded or received income of any kind, with a few exceptions such as:
- Payment for shares taken by subscribers during incorporation.
- Fees paid to Companies House (e.g., for filing confirmation statements or changing the company name).
- Penalties paid to HMRC.
It is important to distinguish between being dormant for Companies House and for HMRC. A company may be dormant in the eyes of Companies House but still be active for Corporation Tax purposes if, for example, it holds investments or earns bank interest.
What Are Dormant Company Filing Requirements?
Dormant companies are still required to:
- File annual accounts with Companies House.
- File a confirmation statement (formerly known as the annual return).
- Keep company details up to date, including registered office, directors, and persons with significant control (PSC).
However, the process to file Company Accounts for a dormant company is simplified. These accounts do not need to include a profit and loss account or a directors’ report. The required documents typically consist of:
- A balance sheet confirming the company is dormant.
- Notes to the accounts.
For small dormant companies, these simplified accounts can be filed online and usually only take a few minutes to complete.
How to File Dormant Company Accounts Online
The quickest and most efficient way to submit dormant accounts is through Companies House’s online service. Here is a step-by-step overview:
- Access WebFiling
Log into the Companies House WebFiling portal using your company’s authentication code. - Select Dormant Company Accounts
Choose the option to file dormant company accounts. Ensure you are filing for the correct financial year. - Complete the Balance Sheet
Fill in the minimal balance sheet required. For most dormant companies, this will include fixed assets, current assets, and share capital—most fields may be zero or unchanged since incorporation. - Add Required Notes
Confirm that the company has been dormant throughout the accounting period. Some notes are auto-filled for you. - Submit and Receive Confirmation
Once filed, you’ll receive a confirmation email. Keep this for your records.
Filing Deadlines and Penalties
Your dormant company’s accounts must be filed within 9 months of the financial year-end. For example, if your accounting reference date is 31 March, the filing deadline will be 31 December.
Failure to file accounts on time can result in automatic penalties, even for dormant companies:
- Up to 1 month late: £150
- 1 to 3 months: £375
- 3 to 6 months: £750
- Over 6 months: £1,500
Penalties double if accounts are late two years in a row. Directors can also be held personally liable for non-compliance and, in serious cases, face prosecution.
Conclusion
While dormant companies face far fewer compliance requirements than active ones, it is still vital to file Company Accounts on time to avoid penalties and reputational harm. The process is straightforward, especially with the online filing system offered by Companies House. Whether your company is being held for future use or simply preserving a business name, staying on top of dormant filing obligations is an essential part of responsible company management.u
