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  3. What is the difference between dormancy and non – trading status?
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  3. What is the difference between dormancy and non – trading status?

What is the difference between dormancy and non – trading status?

The dormant status of your company is a matter of fact – in that, if your company is truly dormant, then it only incurs Companies House fees annually. In these circumstances, then you can submit dormant accounts which comprise a simpler Statement of Financial Position (formerly a Balance Sheet) and notes.


If you wish to retain your company, then you are obliged, as a minimum, to submit annual “simple” statutory accounts to Companies House (comprising a Statement of Financial Position (formerly a Balance Sheet) and notes. 

In addition, an annual confirmation statement is required to be submitted to Companies House. In most instances, though, a company is not really deemed dormant from a Companies House perspective. 

This is because as well as incurring the confirmation statement fee, it may pay accountancy fees to administer its company whilst in a non- trading state. In addition, the directors may make withdrawals or settle prior period liabilities. In this respect, the company is in a non- trading status. If you company is in a non- trading status, in most instances, you would continue to submit a corporation tax return to HMRC, to ensure all non- trading income such as bank interest received is included on the corporation tax return. 

Updated on 23rd October 2020

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