At Addcountax we offer a dormant company service for business owners who feel that their company has run its course. We can ensure you don’t incur any penalties for non-compliance with HMRC’s laws

on dormant companies.

What is a dormant company?

A company is said to be dormant if it doesn’t conduct any significant accounting transactions in a whole accounting period. These transactions are classed as ones that need to be accounted for.This excludes:

• Share payments to subscribers to the memorandum of association
• Fees paid to the Registrar of Companies for a name change, the re-registration of a business and filing annual returns
• Payment of civil penalties for late accounts filing

A company can also not be dormant if it receives interest on its bank account; pays accountancy fees; makes payments for web hosting. If it does then you will have to file accounts and corporation tax returns as normal.

How is a dormant company declared?

Even if your company is dormant, there are still a few procedures that you must complete. But together we can file your dormant accounts and your annual returns at Companies House by the required date. We can also inform HMRC on your behalf that the company is dormant so you won’t need to file a Corporation Tax return. Failure to do so can lead to fines.

You can even register a business with Companies House and leave it dormant, just so that you can protect the business’s name.

So if you think your company is dormant and would like it to be declared as such, or just require some impartial advice, contact us here at Addcountax today.