HMRC must be informed when a non-trading or dormant company starts trading again and thus becomes active for Corporation Tax purposes. Companies can use HMRC Online Services to supply the relevant information.
When a company has previously traded and then ceases to trade it would normally be considered as dormant. A company can stay dormant indefinitely, however, there are costs associated with doing this and certain filings must still be made to Companies House. The costs of restarting a dormant company are typically less than forming a new company.
The following steps are required:
- Tell HMRC that your business has restarted trading by re-registering for Corporation Tax.
- Send accounts to Companies House within 9 months of your company’s year-end.
- Pay any Corporation Tax due within 9 months and 1 day of your company’s year-end.
- Send a Company Tax Return – including full statutory accounts – to HMRC within 12 months of your company’s year-end.
Whilst reporting dates for annual returns and accounts should remain the same. The Corporation Tax accounting period is different and is set by reference to the date when the company restarts business activities.