Managing dormant company accounts can seem daunting, especially for first-time directors. Many questions arise about eligibility, filing deadlines, penalties, HMRC obligations, and Companies House requirements. This FAQ guide provides clear, practical answers to help UK directors remain compliant, avoid penalties, and understand their legal responsibilities when filing dormant accounts online.
A dormant company is a limited company that has had no significant accounting transactions during its financial year.
According to Companies House, significant accounting transactions generally exclude:
Filing fees paid to Companies House
Penalties paid for late filing
Shares issued on incorporation
If a company trades, receives income, pays expenses, or enters contracts, it is normally considered active and cannot file dormant accounts.
Full guidance: Companies House - Dormant Company
Experience insight: We regularly see directors assume no activity means no filing is required, but Companies House still requires correctly prepared dormant accounts each year to avoid penalties.
Yes. Dormant companies must file dormant accounts with Companies House every year, even if there has been no activity. Dormancy does not remove your statutory filing obligation.
These accounts are typically filed using form AA02 and must include:
A simplified balance sheet
A statement confirming dormancy
Director approval and signature
The correct accounting reference date
Failure to file can result in automatic financial penalties and possible strike-off action.
Late filing penalties start at £150 and increase depending on how late the accounts are submitted.
Learn more about avoiding penalties here: Common Dormant Filing Mistakes
If your company becomes dormant for Corporation Tax purposes, you must inform HMRC. Once confirmed dormant, HMRC will normally stop requesting Company Tax Returns. If the company resumes trading, HMRC must be notified and Corporation Tax obligations restart.
Official guidance: HMRC - Dormant Company
Yes. Dormant accounts can be filed online using approved digital systems. Online filing reduces formatting errors, speeds up processing, and provides immediate submission confirmation.
Online filing provides:
Faster processing
Immediate confirmation receipt
Reduced risk of technical errors
Secure electronic submission
Directors should also be aware that Companies House is moving toward increased digital and software-only filing requirements in the coming years.
Related update: 2027 Dormant Accounts Filing Changes
AA02 - Dormant company accounts
CS01 - Confirmation statement, must still be filed annually
Even if the company is dormant, the confirmation statement is still required to confirm registered office details, directors, PSC information, and share capital.
If dormant accounts are filed late, Companies House will automatically issue a civil penalty. The longer the delay, the higher the fine.
Persistent late filing can result in:
Increased financial penalties
Company strike-off proceedings
Director compliance concerns
Setting reminders and filing early significantly reduces risk.
Full breakdown here: Dormant Filing Deadlines & Penalties
Yes. A dormant company can resume trading at any time.
However, once trading begins:
Full statutory accounts must be prepared
Corporation Tax registration may need updating
HMRC must be informed of active status
Standard accounting and record-keeping obligations apply
Before reactivating, directors should ensure proper bookkeeping systems are in place.
Tip: Keep simple internal records, even while dormant. This avoids confusion if HMRC or Companies House request clarification.
If you no longer need the company, you may apply for voluntary strike-off using form DS01, provided the company has no outstanding debts or liabilities.
Guidance: Strike Off a Company (DS01)
