Do you still have to file accounts for a dormant company?

13th April 2026

The term ‘dormant company’ can mistakenly suggest a complete pause in business operations with no obligations and no paperwork. In reality, that assumption can lead to costly mistakes. Even if your company is not trading, it still exists on the public register maintained by Companies House. This means there are ongoing legal responsibilities that must be met, including the requirement to file accounts.

Understanding what is required, and what qualifies as ‘dormant’ in the first place, is essential if you want to avoid penalties, protect your company, and remain compliant. 99p Company Formations explains below.  

What is a dormant company? 

A dormant company is one that has had no significant accounting transactions during its financial year.

This typically includes:

• Companies that have been set up but have not yet started trading

• Businesses that have temporarily paused operations

• Companies formed to hold assets or intellectual property without active trading

Is my company dormant? 

A company can only be considered dormant if it has had no significant financial activity. Certain transactions are allowed without affecting dormant status, such as payment for shares issued when the company was formed and filing fees paid to Companies House.

However, the following would usually mean your company is no longer dormant:

• Receiving income of any kind

• Paying expenses or suppliers

• Bank account activity (including interest or charges)

Do dormant companies need to file accounts? 

Yes, dormant companies must still file accounts every year. Even though there is no trading activity to report, you are still required to submit dormant company accounts to Companies House. This ensures your company remains compliant and continues to appear as active (rather than being struck off the register).

Dormant does not mean exempt.

Filing requirements for dormant companies

A dormant company must still submit annual accounts and a confirmation statement every year. These will be in a simplified format to align with the needs of dormant companies.

You should notify HMRC that your company is dormant so they do not chase you for Corporation Tax returns. If HMRC still considers your company active, you may need to file a CT600 return showing nil figures.

There is no requirement for a full profit and loss account or detailed balance sheet. However, the accounts must still be filed on time, late filing penalties apply to dormant companies just as they do to active ones.

What are dormant company accounts?

Dormant accounts are a simplified version of standard company accounts. They are designed for businesses with no financial activity and are much easier to prepare. Unlike full accounts, they do not include profit and loss statements or detailed financial reports.

Dormant accounts include:

• A simple balance sheet

• A statement confirming the company has been dormant

• Basic company details

How to file dormant company accounts

Dormant accounts can be filed directly with Companies House using their online system.

You will need to:

• Log into the Companies House WebFiling service

• Enter your company authentication code

• Complete the dormant account template

• Submit your balance sheet and confirmation of dormancy

Deadlines for filing dormant company accounts 

The deadlines are the same as for active companies, accounts must be filed within 9 months of the accounting reference date, and the confirmation statement is due every 12 months.

Is filing dormant accounts free?

Yes, filing dormant accounts with Companies House is free of charge.

However, costs can arise if you choose to use a professional service to handle the filing. For many business owners, using a service provides reassurance that everything has been submitted correctly and on time.

What happens if you don’t file dormant company accounts? 

Failing to file dormant accounts can lead to several consequences:

• Late filing penalties, which increase the longer the delay

• Potential strike off, where Companies House removes your company from the register

• Loss of your company name and legal protection

Do you need to complete a confirmation statement for a dormant company? 

Yes, dormant companies must also file a confirmation statement at least once a year. This confirms that your company information is accurate and up to date.

This requirement is separate from filing accounts and must not be overlooked.

Do you need to register for corporation tax if dormant? 

If your company is dormant, you may not need to file Corporation Tax returns, but you must inform HMRC that your company is dormant.

Can a company stay dormant indefinitely?

Yes, a company can remain dormant for as long as needed, provided it continues to meet its filing obligations.

Should you keep a dormant company or close it?

If your company is no longer needed, you may want to consider closing it instead of maintaining dormant status.

Keeping it dormant may make sense if:

• You plan to trade in the future

• You want to protect your company name

Closing the company may be better if:

• You no longer need it

• You want to avoid ongoing admin

Common misunderstandings about dormant companies

Dormant companies are often misunderstood. The term itself suggests inactivity, which can lead to the assumption that there are no ongoing responsibilities. In reality, this is one of the most common causes of compliance issues.

Below are some of the most frequent misconceptions, and why they can cause problems if not addressed early.

Dormant means no paperwork

This is one of the most widespread misunderstandings. While a dormant company does not need to prepare full trading accounts, it is still legally required to submit dormant accounts and a confirmation statement each year.

Companies registered with Companies House remain on the public register regardless of activity. As a result, they must continue to meet statutory filing obligations.

Failing to do so can lead to penalties or even the company being struck off.

I haven’t used the company, so I can ignore Companies House

Some directors assume that if a company has never traded, it does not need attention. However, once a company is incorporated, it exists as a legal entity and must be maintained.

Ignoring Companies House communications or failing to file documents can lead to:

• Escalating late filing penalties

• Compulsory strike off proceedings

• Loss of the company name

A small transaction won’t affect dormant status

Another common mistake is assuming that minor financial activity does not matter. Even small transactions can disqualify a company from being dormant.

Dormant and non trading mean the same thing

While often used interchangeably, these terms are not identical. Understanding the following distinction is important, as it affects how your accounts should be prepared and filed:

• A non trading company may still have financial activity (e.g. expenses or asset management)

• A dormant company must have no significant accounting transactions

I don’t need to tell HMRC if my company is dormant

Even if your company qualifies as dormant with Companies House, you may still need to notify HMRC. If HMRC expects a Corporation Tax return and you fail to inform them of your dormant status, you could receive penalties or unnecessary correspondence.

I can deal with it later when I’m ready to trade

It is common for business owners to set up a company in advance of launching, intending to return to it later. However, compliance obligations begin immediately after incorporation, not when trading starts.

How to keep a dormant company compliant

If you have a dormant company, 99p Company Formations offers a simple and cost effective way to stay on top of your obligations, including filing dormant company accounts on your behalf and submitting confirmation statements.