What are Dormant Company Accounts?
Dormant company accounts are annual accounts that can only be filed by companies that are exempt from audit (ie. a dormant company).
What is a Dormant Company?
A limited company is deemed to be dormant if it’s had no 'significant accounting transactions' since incorporation, or since the last filing of accounts. In layman’s terms, a company is dormant if it has not traded.
How often must Dormant Company Accounts be filed?
Company accounts must be filed for every financial year. If filing your first accounts they must be filed within 21 months of the date of incorporation. Every subsequent filing of accounts must be done within 9 months from the accounting reference date (ARD). If you are unsure of your ARD you can login to your account to view it.
What details do Company Formations need to file my Dormant Company Accounts?
None. The only possible issue might be if the shares in the company are paid or unpaid:
- Paid - The shareholders have paid the company for their shares
- Unpaid - The shareholders have not paid the company for their shares
By default we will mark shares as paid unless otherwise advised within 24 hours of purchase. For an explanation as to why this is, please see the next question.
Why do we mark shares as paid by default?
The reason we mark shares as paid by default is that an unpaid share capital may result in a tax liability. It means that the shareholders owe money to the company, which HM Revenue & Customs can interpret as the company lending the shareholders the money. As these shareholders are participators in the company, HM Revenue & Customs could demand that a S419 tax charge is paid.
How long will it take to process my dormant company accounts?
The standard processing time is 48-72 hours (excluding weekends and Bank Holidays). This is due to us awaiting possible further advice from you regarding the shares being paid or unpaid. We strongly advise that customers purchase their dormant accounts service at least 15 days before the due date of filing. We cannot be held responsible for any late penalties or fines incurred as a result of purchasing the service within 15 days of the due date.
Can I purchase the Dormant Company Accounts service if I did not form my company through Company Formations?
Yes, we just need a few details from you. We need: the company name, company number, webfiling authentication code, share capital and the name of one director. We also need to know if the shares in the company are paid or unpaid (see above).
You can not use this service if:
- The company has ever traded, even in a previous financial year
- The company has filed a Return of allotment of shares document (SH01) with Companies House
- You do not have a valid Companies House webfiling authentication code (we will normally have the code if the company was formed by us)
Important notice regarding late filing penalties:
If a company files accounts after the due date, Companies House will impose a penalty:
Lateness:
- Not more than one month £150
- More than one month but not more than three months £375
- More than three months but not more than six months £750
- More than six months £1500
If the accounts are overdue we will double check that you are happy for us to file despite the penalty.
If company accounts are overdue the only ways to avoid the penalty are:
- Dissolve the company instead of filing accounts
- File the accounts and then appeal against the penalty (appeals may not be successful)