Dormant company tax return (UK): what directors actually need to know.
Short version. Scope: this guide covers HMRC dormancy and the corporation tax / CT600 side. For Companies House dormant accounts filing — which is a separate obligation with its own template and deadline — see file dormant company accounts with Companies House.
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Follow the dormant accounts entry steps →
What does “dormant” actually mean?
Dormant does not mean:
- “Made no profit”
- “Didn't invoice anyone”
- “Didn't actively trade much”
Dormant has a specific meaning. If your company had no significant accounting transactions, it may qualify as dormant. But what counts as a transaction? Examples that may affect dormant status: bank interest, bank fees, paying expenses, receiving income. Even small movements can matter.
Scenario 1: Incorporated but never traded
If you formed a company, never opened a bank account, never issued invoices, and had no transactions — you may be dormant. However, you may still need to file dormant accounts with Companies House, and you should confirm status with HMRC.
Scenario 2: You think you're dormant but had transactions
This is common. If the company paid bank charges, received interest, bought software or paid for another service, it may not be dormant. Companies House fees for a change of name, re-registration or a confirmation statement, and penalties for filing accounts late, do not count as transactions for this purpose. If the company is not dormant, you may need to file both accounts and a corporation tax return (CT600).
Scenario 3: Dormant at first, then you started trading
Common in a first year, and it happens in later years too when a company is dormant at the start of the year. Your annual accounts still cover the whole period to your year end, but your Corporation Tax period starts when the company came within the charge to Corporation Tax, which is normally the day trading began. Where you told HMRC the trading start date and their records show it, the accounts and the tax return cover different dates and HMRC expects one return from that start. Otherwise HMRC expects returns covering the whole period. Read: dormant at first, then trading.
Do dormant companies pay corporation tax?
If truly dormant: usually no corporation tax is due. But that doesn't automatically remove filing obligations.
What if my company made no profit?
No profit does not mean dormant. You can trade, make no profit, and still be required to file. Read: How to file company tax in the UK.
Need to file for a dormant company?
File dormant accounts with Companies House and, if needed, a nil CT600 to HMRC — in one place.
How to decide
Ask yourself:
- Did the company have any transactions?
- Did it receive income?
- Did it pay expenses?
- Did it have bank activity?
If yes — investigate further.
Filing with us? The filing wizard starts on Dormant. Trading status: Active or Dormant explains what each choice files.
When to seek advice
If you're unsure whether transactions disqualify dormant status, professional advice may be worthwhile.
Summary
Dormant companies:
- May not owe tax
- May still need to file
- Must confirm status properly
If you're unsure, start with: file dormant company accounts with Companies House · How to file company tax in the UK · Can I file company tax myself?