Restarting a dormant or non-trading company

Posted on 4th April 2024 by Streets - Corporation Tax

HMRC must be informed when a non-trading or dormant company starts trading and becomes active for Corporation Tax purposes. Companies can use HMRC Online Services to supply the relevant information.

When a company has previously traded and then stops it would normally be considered as dormant. A company can stay dormant indefinitely, however, there are costs associated with doing this and certain filings must still be made to Companies House. The costs of restarting a dormant company are typically less than starting from scratch again.

The following steps are required:

Tell HMRC that your business has restarted trading by registering for Corporation Tax again.
Send accounts to Companies House within 9 months of your company’s year end.
Pay any Corporation Tax due within 9 months and 1 day of your company’s year end.
Send a Company Tax Return - including full statutory accounts - to HMRC within 12 months of your company’s year end.

Whilst reporting dates for annual returns and accounts should remain the same. The Corporation Tax accounting period is different and is set by reference to the date when the company restarts business activities.

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