My company is dormant – do I still have to pay tax and file a tax return?

If your company is currently not active, trading or carrying out any kind of business activity, it is considered dormant for corporation tax purposes. In this instance, your company is not liable for corporation tax and you do not have to file a company tax return.

A dormant company can still be liable for corporation tax if it was previously trading and HMRC issues a 'Notice to deliver a Company Tax Return'. In such cases, the company will have to file a tax return for the period of activity during its most recent accounting period.

A limited company that is dormant should inform HMRC when it does become active. You have 3 months from the start of the tax accounting period to let HMRC know it is active, and this can be easily done using HMRC’s online registration service or by providing the relevant information in writing.