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Restarting a dormant or non-trading company

Restarting a dormant or non-trading company

4 April 2024

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.

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 ceases trading, it typically enters a dormant or non-trading state. It can remain dormant indefinitely, but there are costs and filings associated with maintaining this status. These filings must be made to Companies House, the UK’s official register of companies.

Restarting a dormant company is generally less costly than starting a new one. However, it requires several steps:

  1. Inform HMRC that your business has resumed trading by re-registering for Corporation Tax.
  2. Submit accounts to Companies House within 9 months of your company’s year end.
  3. Pay any due Corporation Tax within 9 months and 1 day of your company’s year end.
  4. Send a Company Tax Return, which includes full statutory accounts, to HMRC within 12 months of your company’s year end.

While the reporting dates for annual returns and accounts remain the same, the Corporation Tax accounting period differs. It’s determined by the date when the company restarts its business activities.

It’s crucial to understand these procedures to ensure compliance and avoid potential penalties. Consulting with a tax professional or accountant can provide further guidance and help navigate the complexities of tax law. Remember, staying informed and proactive is key to successfully managing your business’s tax obligations.

Source: Companies House Tue, 02 Apr 2024 00:00:00 +0100

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