5 Common Mistakes Dormant Companies Make (And How to Avoid Them)

Running a dormant company in the UK might seem simple, but many company directors unknowingly make small mistakes that can lead to late filing penalties, compliance issues, or even the company being struck off the register.

Whether you’re keeping your business on hold or holding assets through a dormant company, it’s crucial to stay compliant with Companies House and HMRC rules.

Here are the five most common dormant company mistakes, and how to avoid them 👇 1. Missing Filing Deadlines

Even though your company is dormant, you must file annual accounts and a confirmation statement on time.

• Dormant accounts must usually be filed within 9 months of the accounting year end.

• Confirmation statements are due every 12 months.
  

Missing these deadlines can result in automatic late filing penalties, starting at £150 and increasing if delays continue. Repeated failures can even lead to your company being struck off.

2. Confusing Dormant Accounts with Confirmation Statements

Many directors mistakenly believe that filing one automatically covers the other, but they are separate filings.

• Dormant accounts show that the company had no significant transactions during the year.

• A confirmation statement confirms company details on the Companies House register.
  

You must file both each year to stay compliant.

3. Failing to Notify HMRC of Dormant Status

When your company becomes dormant, you must inform HMRC. Otherwise, they may expect a Corporation Tax Return and send reminders or penalties.

HMRC should be notified either through your online Corporation Tax account or by post. Once HMRC acknowledges dormancy, you’re usually not required to file further returns until trading resumes.

4. Neglecting to Dissolve Unnecessary Companies

If you no longer need your dormant company, it’s wise to apply for voluntary strike-off rather than keep filing every year.

Many directors forget to close unnecessary dormant companies, leading to needless compliance work, missed deadlines, and penalties over time.

5. Ignoring Penalties for Late Filings

Some directors think dormant companies aren’t “serious,” so they ignore reminders. But Companies House treats late filings seriously, penalties are legally enforceable and increase the longer you delay.

Multiple late filings can also damage your director record and affect your ability to form or manage other companies in the future.

✅ Stay Compliant the Easy Way

Avoid these common mistakes and keep your company penalty-free with our fast, simple, and affordable £15 dormant accounts filing service.

We handle the entire process for you, ensuring your company remains fully compliant with Companies House.

👉 File Dormant Accounts Now ↗️