Do dormant companies need to file tax returns

By definition, dormant companies are not trading, so will generally be very limited in their usefulness as business vehicles. A company will not be considered as dormant by HMRC if it:. Some of the scenarios in which a company will be dormant and does not need to file a tax return include:.

If a company fulfils the criteria of a dormant company, HMRC can be informed that it is dormant. Once HMRC has been informed that a company is dormant, there will be no need to file a further corporation tax return — unless you receive a Notice to Deliver a Company Tax Return.

If HMRC believes that a company is dormant, it will inform the company that it considers it to be dormant for the purposes of corporation tax, and it will state that there is no need for a dormant company to submit a tax return. If a dormant company starts trading again, it must inform HMRC that it is no longer dormant. The company directors should make HMRC aware that a company is active again within three months from the date on which it starts to trade again or receives an income.

Once a dormant company becomes active again, it will need to submit its annual tax return. It should be noted that the corporation tax accounting period will usually change when a dormant company is made active. This accounting period begins again when the company resumes trading. But the accounting reference date for the purposes of filings with Companies House stays the same, since some Companies House filings continue while the company is dormant.

This means there will be a difference between the two deadlines if a dormant company becomes active. However, it is possible to align the Companies House accounting reference date with the end of the corporation tax accounting period by following the steps in this example:.

You can change your cookie settings at any time. Trading includes buying, selling, renting property, advertising, employing someone or getting interest. If you do not intend to trade again you must deregister for VAT within 30 days of your company becoming dormant. If you do not plan to restart trading in this tax year, you should close your PAYE scheme. Book your coronavirus vaccination and booster dose on the NHS website. To help us improve GOV.

It will take only 2 minutes to fill in. Cookies on GOV. What should be indicated for the date of commencement of operations and the business code since the dormant company has not commenced operations?

The IRBM has verbally indicated that the date of commencement can be left blank if the company has not commenced operations. It can be updated later when the company commences operations.

The business code can be changed later when the company commences operations. What should be indicated for the basis period of a dormant company? The IRBM has verbally suggested that the accounting period may be taken as the basis period for companies which have not commenced operations.

If a dormant company commences operations later and there is a different basis period, how can the IRBM be informed of the change? The IRBM verbally confirmed that this means a dormant company is not required to submit the Form CP as long as it did not commence operations.

Please refer to the response in item 13 above. Is it the same? FAQs - What is paid up capital? FAQs - What is register address?