Understanding Dormant Accounts
What Are Dormant Accounts?
Dormant accounts refer to financial statements that a company must submit to Companies House if it has had no significant transactions during its financial year. This means the company has not engaged in any trading activities, bought or sold goods or services, and has not received any income. Minor transactions, such as payment of a small fee to maintain the company’s registration or payment of penalties to Companies House, do not count as significant transactions.
Why Submit Dormant Accounts to Companies House
Submitting dormant accounts to Companies House is a legal requirement for UK companies that have not engaged in trading activities. This ensures that the company remains in good standing and avoids potential penalties. Failure to submit these accounts on time can result in financial penalties and even the possibility of the company being struck off the registrar. Ensuring compliance with these regulations helps protect the company’s status and avoids unnecessary complications.
Preparation for Submission
Before you submit dormant accounts to Companies House, it’s essential to properly prepare by reviewing the company’s status and gathering the required information.
Reviewing Company Status
The first step in the preparation process is to confirm that the company is indeed dormant. A dormant company is one that has had no significant accounting transactions during the financial year. Significant transactions include those that need to be recorded in the company’s accounting records, apart from a few exceptions such as:
- Filing fees paid to Companies House.
- Penalties for late filing.
- Money paid for shares when the company was incorporated.
To ensure the company meets the criteria for dormancy, a review of the financial records is necessary. This can be done by examining the balance sheets and income statements for any significant transactions. It’s crucial to confirm the dormant status to avoid penalties. For more information on penalties, see our article on companies house penalties.
Gathering Required Information
Once the dormant status is confirmed, the next step is to gather all necessary information for submission. This includes:
- Company Registration Number: This unique number is assigned by Companies House upon incorporation.
- Company Name: Ensure it’s the exact name registered with Companies House.
- Balance Sheet: Even dormant companies must submit a balance sheet, which should include:
- Total assets
- Total liabilities
- Shareholder’s equity
Here’s a simplified version of what the balance sheet might look like:
| Assets | £ |
|---|---|
| Cash at bank | 0 |
| Debtors | 100 |
| Total Assets | 100 |
| Liabilities | £ |
|---|---|
| Creditors | 0 |
| Total Liabilities | 0 |
| Equity | £ |
|---|---|
| Share Capital | 100 |
| Retained Earnings | 0 |
| Total Equity | 100 |
- Company Authentication Code: This code is essential for online submissions. If the code is lost or forgotten, it can be recovered. See our guide on companies house authentication code.
- Statements of Dormancy: A statement confirming that the company has been dormant during the financial year.
By gathering this information in advance, the submission process becomes more straightforward.
Ensuring that all the necessary paperwork and information are in order before starting the submission process will save time and reduce the possibility of errors. This preparation is vital for in order to submit dormant accounts to Companies House without any hassle.
Hassle-Free Submission Process
Submitting dormant accounts to Companies House can be straightforward if you follow the correct methods. There are two primary ways to submit these accounts: online and through paper submission.
Online Submission Method
Submitting dormant accounts online is the most efficient and hassle-free method. The online process is quick and allows for immediate confirmation of receipt from Companies House. Here’s a step-by-step guide to submitting dormant accounts online:
- Create an Account: If you don’t already have an account, visit the Companies House website and create one.
- Log In: Use your Companies House authentication code to log in. If you need to retrieve your code, visit companies house and request your authentication code.
- Select “File Dormant Accounts”: Navigate to the filing section and select the option to file dormant accounts.
- Enter Company Information: Provide your company number and confirm your company details.
- Fill Out the Dormant Accounts Form: Complete the form with the necessary financial information, ensuring accuracy.
- Review and Submit: Double-check all entered information and submit the form.
| Step | Action |
|---|---|
| 1 | Create an account |
| 2 | Log in using authentication code |
| 3 | Select “File Dormant Accounts” |
| 4 | Enter company information |
| 5 | Fill out the dormant accounts form |
| 6 | Review and submit |
Paper Submission Method
While it is better and easier to submit dormant accounts to Companies House online, paper submission is also an option. This method involves mailing the dormant accounts to Companies House. Here’s how to do it:
- Download the Form: Visit the Companies House website and download the dormant accounts form.
- Fill Out the Form: Complete the form with accurate financial information and company details.
- Print and Sign: Print the completed form and have it signed by a company director.
- Mail the Form: Send the signed form to Companies House at the address provided on their website.
| Step | Action |
|---|---|
| 1 | Download the form |
| 2 | Fill out the form |
| 3 | Print and sign |
| 4 | Mail the form |
Ensure all information is accurate to avoid delays or penalties. For more on potential penalties, visit our article on companies house penalties.
By following these methods, UK business owners can efficiently submit dormant accounts to Companies House, ensuring compliance with regulatory requirements.
Final Steps
Tracking Submission Progress
Once the dormant accounts have been submitted to Companies House, tracking the submission progress is important to ensure that everything is processed correctly. Companies House provides several ways to monitor the status of your submission:
- Online Tracking: If the submission was done online, you can log in to your Companies House account and check the status of your filing. The system will provide real-time updates on whether the submission is pending, approved, or requires further action.
- Email Notifications: Ensure that your email address is up to date with Companies House. They will send notifications regarding the status of your submission, including any issues that need resolving.
- Phone Enquiries: You can contact Companies House directly via phone to inquire about the status of your submission. Have your company number and submission details ready for quick reference.
| Tracking Method | Details |
|---|---|
| Online Tracking | Real-time updates via Companies House account |
| Email Notifications | Status updates sent to registered email |
| Phone Enquiries | Direct contact for immediate assistance |
Ensuring Compliance with Companies House Regulations
Compliance with Companies House regulations is essential to avoid penalties and ensure your company’s good standing. Here are key points to consider:
- Accuracy of Information: Ensure that all information submitted is accurate and up-to-date. Inaccurate information can lead to delays and potential fines.
- Submission Deadlines: Adhere to the deadlines for submitting dormant accounts. Late submissions can result in penalties. For more information on this, see our article on companies house penalties.
- Updating Company Details: If there have been changes in your company’s details, such as address or directors, ensure these are updated with Companies House. Refer to our articles on how to change address on companies house and companies house change of directors.
By following these steps, business owners can submit dormant accounts to Companies House efficiently and remain compliant with all necessary regulations.