Stopping trading doesn’t automatically stop HMRC from expecting a Corporation Tax return — that only happens once you actively tell them your company is dormant, and they confirm it. Skip that step and the Company Tax Return notices keep coming, whether or not there’s anything to report.
Here’s exactly how to notify HMRC, what you’ll need to hand, and what still has to be filed even after you’re confirmed as dormant.
What “dormant” actually means to HMRC
Your company is generally dormant for Corporation Tax purposes if it:
- Has stopped trading and has no other income, such as investment returns
- Is a newly incorporated company that hasn’t started trading yet
- Is an unincorporated association or club owing less than £100 in Corporation Tax
Worth knowing: dormancy for HMRC and dormancy for Companies House are assessed differently, and it’s worth checking your status against both rather than assuming one confirms the other. Companies House looks at whether you’ve had any “significant” transactions in the financial year — broadly, anything beyond the money shareholders originally paid for their shares.
Before you start: what you’ll need
- Your company’s name
- Your 10-digit Unique Taxpayer Reference (UTR)
- The date your company stopped trading, if it had previously been active
How to tell HMRC: step by step
1. If your company has never traded
You can tell HMRC as soon as you receive your UTR, which typically arrives within about three weeks of incorporation. Use HMRC’s online dormancy notification service and confirm the company has not started trading. If HMRC accepts this, you won’t need to prepare a Corporation Tax return or pay Corporation Tax until the company actually starts trading.
2. If your company was previously trading
Sign in to your HMRC business tax account through Government Gateway and select the option to tell HMRC your company is dormant for Corporation Tax. You’ll need to give the date trading stopped. If you can’t use the online service, you can also notify HMRC by phone or by writing to your Corporation Tax office directly.
3. Wait for confirmation
HMRC typically confirms your dormant status in writing within around three weeks. Until you receive that confirmation, treat any notice to deliver a Company Tax Return as something you still need to answer — including filing a nil return for the final period of trading if HMRC issues one before your dormancy is confirmed.
What changes once you’re confirmed dormant
Once HMRC has accepted your dormancy, you won’t need to file another Company Tax Return or pay Corporation Tax unless one of two things happens:
- HMRC specifically asks you to file one, or
- You begin trading again
What you still have to file, even while dormant
Telling HMRC you’re dormant only stops your Corporation Tax obligations — it doesn’t touch your Companies House requirements. While dormant, you still need to file:
- A confirmation statement every year, confirming your company’s registered details are still correct
- Dormant company accounts with Companies House annually, even though there’s nothing to report
A company can stay dormant indefinitely provided both of these keep being filed on time — plenty of holding companies and companies reserved for future use remain dormant for years without issue. We’ve covered exactly what dormant accounts need to contain in our separate guide to file your dormant company accounts (AA02).
If you start trading again
You must notify HMRC within 3 months of the date your company becomes active again. Once you do, the company registers properly for Corporation Tax and can begin filing CT600 returns as normal. You don’t need to separately tell Companies House — your next set of non-dormant accounts will show the change on its own.
If you’d rather not track which notices apply to your dormant company and which don’t, our team can handle the HMRC notification and keep your Companies House filings current until you’re ready to trade again.
