Dormant company accounts: a preparation checklist

Companies House dormancy depends on the absence of significant accounting transactions, subject to specified exceptions. It is not identical to being dormant for Corporation Tax. Check the actual year's activity before choosing dormant accounts, including bank entries and costs paid on the company's behalf.

A lack of sales does not by itself establish dormancy. Review the company record, share capital and prior balances with the accountant. Annual accounts and confirmation statement obligations can continue even where the company is dormant, so keep the filing calendar active.

Check dormancy against the actual transactions

Obtain bank statements, invoices and the ledger for the entire period. Companies House dormancy turns on the absence of significant accounting transactions, with specified exceptions. GOV.UK lists the relevant treatment. ^[1] Do not assume a company is dormant merely because it made no sales or its directors were not actively working. Bank charges, interest, expenses or other movements may require assessment.

Check each apparent exception against the guidance rather than classifying all administrative payments alike. Keep an activity schedule showing what occurred and who paid. If a director settled a company cost personally, that may still create a company accounting transaction requiring review. The absence of a business bank account does not by itself establish that nothing happened in the company's affairs.

Distinguish Companies House and HMRC positions

Dormancy for Companies House and inactivity or dormancy for Corporation Tax are related but separate assessments. HMRC's guidance on trading and non-trading companies explains the tax context. ^[2] Record the conclusion for each authority and any notices received. Do not assume that telling one organisation automatically resolves all obligations to the other.

Check whether HMRC has issued a notice requiring a return and how it should be addressed. Keep correspondence and confirmations with the company record. Annual accounts and confirmation statement responsibilities may continue while a company is dormant. Use Confirmation statements and annual accounts compared to distinguish those filings and Registering an active company for Corporation Tax if the company has started activity requiring a Corporation Tax update.

Prepare the accounts from evidence, not a blank template

Confirm the company name, number, period and prior-year figures. Reconcile share capital and any balances that legitimately remain. A dormant company can still have a history that needs accurate presentation. Do not copy a zero-balance template into a company that previously traded or holds assets without asking the accountant about the correct accounts and eligibility for the intended filing route.

Review changes in directors, shareholders and company details separately from accounting activity. These may create administrative requirements even when they do not determine the accounts' dormancy conclusion. Keep the current contact and filing responsibility clear so a quiet company does not accumulate missed notices simply because nobody expects regular operational correspondence.

Keep approval, deadlines and future plans visible

Confirm the applicable accounts deadline and leave time for review. Dormant status is not a reason to assume late filing has no consequence. Use the current Companies House route appropriate to the company and retain submission acceptance evidence. A saved draft or payment confirmation does not necessarily establish that the accounts were accepted for the correct period.

Discuss whether the entity is still needed. Continuing dormancy, restarting activity and closing the company involve different steps. If business activity resumes, record the date and notify the relevant adviser promptly. Avoid using the previous year's dormant conclusion indefinitely after the company begins purchasing, earning income or entering transactions that change its position.

For Annual accounts preparation support, provide the full period's bank and transaction evidence, previous accounts and HMRC correspondence. Ask for separate conclusions on Companies House and tax status and a filing plan based on those facts. Keep a short annual review routine even when nothing is expected to change. This prevents an apparently inactive company from relying on assumptions that no longer match its actual transactions or outstanding notices.

Review automatic transactions before assuming no activity

Inspect bank charges, interest, software renewals and payments made by a director on the company's behalf. A company may have no sales while still having transactions that require assessment for its accounts and tax status. Obtain the statements and explanations rather than asking only whether the business traded.

Keep the Companies House and HMRC conclusions separately documented, including any notices or filing obligations that remain. If activity is planned, identify the first practical steps and ask when those steps affect the relevant status. This avoids carrying a dormant label forward through a bank feed, expense payment or new contract that changes the facts. The preparation file should show why the chosen treatment fits this period, not simply repeat last year's description.

Illustrative scenario

A company has no customers but pays for software and incurs other costs during the year. The directors ask whether those transactions prevent dormant accounts rather than assuming no turnover means dormant. The accounting and Corporation Tax positions are assessed separately using the relevant definitions.

Preparation checklist

• Review all transactions and applicable exceptions.
• Distinguish Companies House and Corporation Tax dormancy.
• Check share capital and opening balance evidence.
• Confirm accounts and confirmation statement deadlines.