Pressing the snooze button on your limited company
We understand that there’s times where you just need to put your limited company on hold. If you’re unsure whether closing your limited company is the correct choice for you, then dormancy could be a better option. Making your limited company dormant, rather than closing it altogether, gives you the ultimate flexibility in picking things back up exactly where you left them.
In preparation for the IR35 reforms to the private sector, you may have looked at working through an umbrella company or leaving contracting altogether in favour of traditional employment.
We’re able to provide contractors such as yourself with a compliant umbrella solution, thanks to our sister company, Parasol. If you wish to follow the umbrella route, then there’s no reason to permanently close your limited company. Thanks to our dormancy service, it couldn’t be simpler to place your limited company into dormancy and resume trading through it once you’ve finished working through the umbrella company.
We can help
If you’ve decided that dormancy is the route you wish to take, then you’re in the right place. Take advantage of our non-trading accountancy package, for only £40 + VAT per month, for a limited time only.
We’ll continue your statutory filing for the period you are not trading, meaning that your company is ready to begin trading again when you are.
Take the time to sit back and relax, safe in the knowledge that everything is being looked after.
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To discuss our non-trading accountancy package with a specialist, complete the form below and a member of our team will be in touch.
Frequently Asked Questions (FAQs)
1. What is a dormant company?
A dormant company is defined as one that has been registered with Companies House but is not receiving any income or carrying out any form of business activity.
2. Is dormancy the right option for my limited company?
Making a limited company dormant is ideal if you only intend to step away for a short period of time before you return. It's also useful if you want to create a limited company before you are ready to begin trading.
3. What responsibilities do I have?
Even when your company is classed as dormant, as a company director you have a responsibility to file documents with HMRC and Companies House. These documents include the following:
- Confirmation Statement (CS01): this document costs £13 to submit online, and £40 to submit a paper copy. We will complete and submit this on your behalf as part of our non-trading accountancy package.
- Corporation Tax (CT600)
- Accounts (AA02)
4. How long can my company be dormant for?
There is no length of time for how long a company is permitted to remain dormant, however it's worth considering whether you will trade through your limited company after it has been dormant for a considerable duration.
5. How do I make my company active again?
When you are ready to reactivate your dormant company, you must notify HMRC within three months of trading or receiving any income. As part of our non-trading accountancy package, we will notify HMRC on your behalf when your company has resumed trading.
You do not need to notify Companies House that you have started trading again.
Contact SJD Accountancy
To discover more about our non-trading accountancy package, speak to an expert.