Dormant Company Accounts Filing in Llandeilo for Dormant Limited Companies

Dormant company accounts are the annual accounts a limited company prepares for Companies House when it qualifies as dormant for Companies House purposes during the relevant financial period, typically because it has had no significant accounting transactions. They are generally a simpler set of accounts than those of a trading company, focusing on the company's position at the year end rather than a full profit and loss account, because there is very little activity to report. They are not the same thing as a confirmation statement, a Corporation Tax Return or a VAT Return, all of which are separate filings with different purposes. If you are unsure whether your company meets the definition, it is worth confirming your position before anything is prepared.

Broadly, a company is treated as dormant for Companies House purposes when it has had no significant accounting transactions in the financial period concerned. Certain administrative matters are commonly disregarded for this purpose, such as the taking of shares by subscribers and the payment of fees to Companies House, but the treatment of any particular transaction depends on the circumstances and the applicable rules. Ceasing to trade does not automatically make a company dormant, and a company cannot simply decide to treat itself as dormant because it has no income. If the company has received income, paid expenses, bought or sold assets, or had money moving through a bank account, that activity may take it outside the dormant definition for the period in question.

In most cases, yes. A company that is dormant for Companies House purposes generally still has an obligation to prepare and file annual accounts for each financial year, unless it has been formally dissolved or a specific rule applies to it. Dormancy is about the level of activity within the company, not an exemption from filing altogether. Accounts prepared on a dormant basis are often shorter and simpler than those of a trading company, but a filing still needs to be made by the relevant deadline and the accounts need to be prepared in line with the applicable requirements. If you are not certain what applies to your company, it is worth confirming before the filing date comes around.

Yes. A confirmation statement is a separate Companies House filing from dormant company accounts, and a dormant company that remains registered will normally need to file one at least once every 12 months, even if nothing has changed. It confirms that the information Companies House holds — such as the registered office address, directors, shareholders and share capital — is correct as at the confirmation date. Filing dormant accounts does not remove the need for a confirmation statement, and filing a confirmation statement does not replace the need for accounts. The two obligations run alongside each other, and both need to be kept in order.

They can be. A dormant company with no significant accounting transactions generally has far less to report than a trading company, so the accounts tend to be shorter and are prepared on a different basis. A trading company would usually prepare a profit and loss account, a balance sheet and fuller notes, whereas dormant accounts typically focus on a simple statement of the company's financial position at the year end. The exact format, contents and filing route depend on the company's circumstances and the applicable Companies House rules. There is no single form that suits every dormant company — AA02, for example, is only appropriate in certain cases — and a company that was previously trading, or that has had transactions in the period, may need to prepare and file accounts on a different basis.

No, these are two separate concepts administered by two different bodies. Companies House dormancy relates to whether a company has had significant accounting transactions in the period, while dormancy for Corporation Tax purposes is a status recognised by HMRC and depends on whether the company is within the charge to Corporation Tax and what obligations it has for that period. A company can be dormant for one purpose and not for the other, and it is possible to have Companies House dormant accounts sitting alongside an ongoing HMRC position. Importantly, filing dormant company accounts with Companies House does not automatically notify HMRC of anything, and it does not bring Corporation Tax obligations to an end. Corporation Tax Returns are a separate HMRC obligation where they apply. If you are unsure about your company's Corporation Tax position, it is best to check with HMRC or a qualified adviser.

It can, but those transactions may affect whether the company is regarded as dormant for Companies House purposes. Bank charges, interest received, an annual fee or simply money passing through the company's bank account are common examples of activity that may be treated as significant, depending on the circumstances and the applicable rules. Where a company has transactions of this kind, it may not be able to prepare accounts on a dormant basis for that period and may instead need to prepare and file accounts in the same way as a non-trading but non-dormant company. The sensible approach is to look at exactly what has happened during the period before deciding how the accounts should be prepared and filed.

As a starting point you will usually need the company name and registration number, the accounting period and year end date, details of the company's assets and liabilities at the balance sheet date, the issued share capital, and confirmation that the company has had no significant accounting transactions during the period. Bank statements for the period help to confirm that nothing has moved through the account that would affect the position, and existing Companies House records should be checked so that what is filed is consistent with the information already on the register. If any activity has taken place, details of it are needed so that an accurate decision can be made about how the accounts should be prepared and which filing route is appropriate.