Dormant Company Corporation Tax Return
Many people are under the impression that dormant companies can be forgotten about, that they need not file a Corporation Tax Return, and that they will incur no penalties for failure to submit one. This is simply not true, and you should take care to avoid incurring unnecessary penalties.
When you set up a new limited company, there will normally be some time that the company is dormant – in other words; where no trading happens. HMRC takes a practical approach to this and doesn’t expect you to send a Corporation Tax Return until the company becomes active. The same applies when the company has stopped activity.
The problem, of course, is that HMRC doesn’t know that your company is dormant. They may assume that you are operating from the time you register your company with Companies House.
If they are not aware that your company is dormant, they will expect a return; the fine for not submitting can be up to £1,000. If you don’t receive a return, it doesn’t mean that HMRC knows your company is dormant. If you don’t tell HMRC and don’t submit a form, they will fine you.
Let us prepare and submit your corporation tax return to HMRC.
What details do we require?
We need a few basic details such as company name, company number, year end (ARD), unique taxpayer reference (UTR) from HMRC and the name of one director to sign the return.
As part of the Money Laundering Regulations, we are required to confirm the identity of new clients and we will request this once the order has been placed.
What is the unique taxpayer reference (UTR)?
The UTR is the code issued by HMRC for filing company corporation tax returns online. You will find this on any HMRC correspondence, addressed to your company, with ‘Corporation Tax’ in the title. This is usually found in the top right hand corner of the letter, under ‘reference’. If you don’t have the UTR, don’t worry, we can request it to the resent to the company’s registered office.
How long will it take?
Our standard turnaround time is 24 hours (subject to having the UTR). After the order is placed one of our accountants reviews the details and clears any queries before preparing the corporation tax return. We recommend that orders are placed at least 7 days before the due date of filing. Please note we cannot be held responsible for any late penalties or fines if the order was placed within 7 days of the due date.
What will I receive?
Once the corporation tax return has been filed and accepted by HMRC you will receive a PDF copy for your records.