How To Restart A Non-Trading Company

A company, when is not trading becomes a dormant or a non-trading company. When a is dormant, it is not required to file accounts and tax returns to the Companies House and HMRC.

However, when the company reverts to trading, it is again a trading company and must start reporting to the Companies House and HMRC to supply the relevant information.

A company can choose to stay a non-trading company (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 starting from scratch again.

The following steps are required:

• Tell HMRC that your business has restarted trading by registering for Corporation Tax again.
• 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 when the company restarts business activities.

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