Hmrc when is a company dormant

Registration can be beneficial if you want to take a break from contracting and return to permanent employment for a period of time. Alternatively, you may want to register a limited company for future use. To do this, you must first contact your local Corporation Tax office in writing with the date which your company has or will be inactive.

This should be sent to HMRC online before your company can be considered dormant. You will also need to pay any outstanding Corporation Tax. Before your company is declared dormant, you will need to close your payroll and ensure all outstanding bills are paid. There is no time limit on making your company dormant, but once your limited company has been registered, there are certain obligations which you must fulfil. You will still need to file annual accounts with Companies House.

This statement will outline all of your key company dates, as well as director details and information about any shares issued. Once your company is registered dormant, you cannot have paid employees. Similarly, you cannot pay dividends to shareholders without making the company active again. Getting the best advice regarding your limited company is not always easy. For help and advice regarding company dormancy, take a look at our company dormancy service.

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By continuing to browse the site you are agreeing to our use of cookies. Search blog: Search:. Post Views: 4, Category: About Companies July 25, Author: Alex Heshmaty Alex Heshmaty is a legal copywriter and journalist, and founder of legal content company Legal Words.

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