Why do I need to mark a company as Dormant?
You are required to mark a company as Dormant with HMRC if your company has not traded. By marking a company as Dormant this will update HMRC’s records and you will not be required to file Company Tax Returns on a yearly basis.
All companies are automatically registered to receive a Company Tax Return reminder on a yearly basis. As you are receiving reminders this means that you are required to file a Tax Return. If your company is Dormant, you are not required to file Tax Returns and must mark your company as Dormant with HMRC.
How long does it take to mark a company as Dormant?
It usually takes around 5 working days to mark a company as Dormant with HMRC, however this does depend on their workload.
Once your company has been marked as Dormant we will send you email confirmation.
What happens if I don’t mark a company as Dormant?
If your company has not traded and you do not mark it as Dormant, HMRC will send you Company Tax Return reminders by post and they will request that you file a Company Tax Return.
Failure to file your Company Tax Return on time will result in your company receiving a penalty. Therefore, if you have a company that has not traded it is recommended that you mark it as Dormant with HMRC as soon as possible.
When can I mark a company as Dormant?
You can mark your company as Dormant whenever you like. However, it is recommended that you mark your company as Dormant within the 1st year of your company being registered.
Most people choose to mark their company as Dormant as soon as it has been registered.
If you would like to mark your company as dormant with HMRC, please order this service from our UK Additional Services