If you have received a Corporation Tax Reminder for your Dormant Company, then don’t ignore the letter otherwise you may face penalties. This letter is a reminder that you need to file a Corporation Tax Return, but if you Limited Company has not traded then you may not need to file a return at all.  You can write to HMRC to notify them of Dormant Company Status.

Why Do You Need to Notify HMRC of Dormant Company Status

You need to notify HMRC of your Limited Company’s Dormant Company Status because the default position adopted by HMRC is that all Companies are trading and therefore should be filing a Corporation Tax Return and paying Corporation Tax.

Having a Dormant Company is perfectly fine, you just need to make sure you notify HMRC about it so they can update their records.

How to Notify HMRC of Dormant Company Status

HMRC can be notified of Dormant Company Status by post, although you should always confirm that your Company meets the HMRC Definition of Dormant Company Status before doing this.

Firstly, you’ll need to Complete Your Dormant Company Accounts and file them with Companies House. Once these are accepted at Companies House you can then write to HMRC to notify them that the Company is Dormant, enclosing evidence to support Dormant Company status.  HMRC will then update their systems and you will no longer receive a Notice to Deliver a Company Tax Return (CT603) each year, as they will understand that this form is not required.  Send your letter to HMRC at this address:

HMRC

CT Services

Corporation Tax Services

HM Revenue and Customs

BX9 1AX

Always include the Company Name and Unique Tax Payers Reference (UTR) on your letter and ensure it is signed by a Director of the Company.  You can find your Company’s UTR number at the top of any correspondence you have from HMRC or within your HMRC Business Online Account, under the heading ‘Corporation Tax’.

Step by Step Guide to Filing Your Dormant Accounts Online

My step by step guide walks you through the process of filing you dormant accounts online with Companies House, including screen shots of an example Dormant Company set of Accounts.  In addition, the guide includes a letter template for you to use so you can notify HMRC of Dormant Company Status.

If You Have Lost Your Dormant Company UTR

If you have lost your Company UTR then you will need to call HMRC on 0300 2003410 to retrieve it. You must be a Company Director to make this phone call and they will ask various security questions, including your Registered Office address. You should note that due to the confidential nature of this code HMRC are unable to issue a lost UTR number over the phone.

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.