Are accounts and a corporation tax return needed if my company is dormant?

If your company has never traded, you can file form AA02 with Companies House rather than filing full accounts. This form is only relevant where the company has never traded. If there has been trade in previous years dormant accounts will need to be prepared and filed.

Whether a corporation tax return is needed will depend on what HMRC has been informed.

If HMRC has been informed the company is dormant, it should not have issued a corporation tax return and one will not need to be completed. It is still advised to check with HMRC to ensure it hasn’t issued one to avoid any penalties.

If HMRC has not been informed the company is dormant it will have issued a corporation tax return.  In this case, HMRC should now be informed that the company has been dormant and hopefully remove the requirement to complete a corporation tax return for that period. If not, a nil return will need to be filed to avoid a penalty.

Should you require any advice or assistance in this area please contact us on 01636 402 425 or use our simple online contact form to arrange a free initial consultation.

Date published 26 Aug 2021 | Last updated 20 Mar 2024

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.