Dormant companies: the strict definition
What dormancy is, when you are no longer dormant, and what dormant companies have to file
Dormant has a strict legal meaning: no significant accounting transactions during the period. It is much narrower than 'not very busy' or 'not made any sales yet'.
What breaks dormancy
Any trading, paying costs, earning bank interest or receiving income breaks dormancy. Only a handful of items are ignored, such as the payment for the original shares and certain Companies House fees. Even minor bank activity usually means the company is not dormant.
What dormant companies file
A genuinely dormant company files simplified dormant accounts at Companies House, and once HMRC agrees the company is dormant, no Corporation Tax return is normally required until that changes.
💡 Good to know: If the company has traded at all in the period, it is not dormant for that period. Check with us before assuming dormant treatment applies.
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