Making a limited company dormant — what you need to know
Direct Answer
To make your limited company dormant you must notify HMRC and stop filing CT600 Corporation Tax returns — but you must continue filing dormant accounts and a confirmation statement with Companies House every year. Important for 2026: HMRC's free online CT600 filing service closes on 31 March 2026 — any outstanding returns must be filed before that date or using commercial software. If you no longer need the company at all, voluntary strike-off via DS01 removes all ongoing obligations permanently.
The March 31 2026 CT600 filing deadline — urgent callout
HMRC is closing its free online Corporation Tax filing service on 31 March 2026. After this date all CT600 returns — including nil/dormant returns — must be filed using HMRC-recognised commercial software.
If you have an outstanding CT600 for a dormant period, you have two options:
- File it before 31 March 2026 using HMRC's online service
- File using commercial software (FreeAgent, Xero, QuickBooks) after that date
Paper filing is still technically available — download the CT600 form from HMRC's website, complete it manually, and post it to your CT office. Allow several weeks for processing.
Dormant vs Strike-off — which is right for you?
- ✓ Company remains on register
- ✓ Company name and number protected
- ✓ Can resume trading immediately when ready
- ✓ Must file: confirmation statement (£34/year) + dormant accounts annually
- ✓ No CT600 required once HMRC notified
- ✓ Right choice if: you may contract again through this company
- ✓ Company permanently removed from register
- ✓ Name available for others to register
- ✓ All annual obligations end
- ✓ Cost: £8 (online DS01)
- ✓ Must clear all HMRC obligations first
- ✓ Right choice if: you will never use this company again
⚠ Warning — any money left in the company at dissolution passes to the Crown. Extract all funds correctly before striking off.
How to make a company dormant — step by step
Cease all trading and business activity — no income, no invoices, no purchases after the cessation date
Close the PAYE scheme if open — submit final FPS or EPS via Basic PAYE Tools or payroll software
File any outstanding CT600 returns up to the date trading ceased — these must be filed even for the dormant period up to cessation
Notify HMRC the company is dormant — via Business Tax Account online or letter to your CT office quoting your UTR and the date trading ceased
File dormant accounts with Companies House each year — simple balance sheet, takes minutes
File confirmation statement each year — £34 online, 10 minutes
ℹ Keep a copy of your HMRC dormancy notification with the date sent. If HMRC continues issuing CT notices after notification, reference this date when you contact them.
What happens to Corporation Tax when dormant
| Situation | CT600 required? | Accounts required? |
|---|---|---|
| Trading company | Yes — annually | Yes — full accounts |
| Company in dormant period (HMRC notified) | No | Yes — dormant accounts (simpler) |
| Company with outstanding returns before dormancy | Yes — file before going dormant | Yes |
| Struck off company | No — company no longer exists | No |
⚠ Outstanding CT600 returns for trading periods must still be filed even after the company becomes dormant. Dormancy only stops future CT notices — it does not cancel returns already due.
Dormant accounts — what they look like
Dormant accounts filed with Companies House are much simpler than trading accounts. They contain:
- A balance sheet showing share capital only (typically £1 or £100)
- A statement that the company was dormant throughout the period
- Director's signature confirming the accounts are correct
There is no profit and loss account. No notes about turnover. No corporation tax calculation. Most dormant company accounts are one page. They can be filed online via Companies House WebFiling at no charge.
Confirmation statement — still required when dormant
| Filing | Required when dormant? | Cost | Deadline |
|---|---|---|---|
| Confirmation statement | Yes | £34 online | Within 14 days of anniversary |
| Dormant accounts | Yes | Free (Companies House) | 9 months after year end |
| CT600 | No (once HMRC notified) | N/A | N/A |
| PAYE | No (close scheme if no payments) | N/A | N/A |
⚠ Missing confirmation statements while dormant can result in Companies House striking the company off — which may not be your intention. Set a calendar reminder annually.
How to strike off instead (DS01)
Settle all HMRC liabilities — final CT600, final VAT return, close PAYE scheme
File final accounts with Companies House
Extract remaining company funds as salary or dividend (correctly documented)
Close the company bank account
File DS01 form at Companies House — £8 online
Companies House advertises in London Gazette — 2 month objection period
If no objections — company is struck off and dissolved
🛑 Any money remaining in the company at dissolution passes to the Crown automatically. Do not leave funds in the company when striking off.
Whether you're making your company dormant, filing a final CT600, or considering strike-off — Autobooks handles the full process.
From £89+VAT/month.