Dormant Company

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My client didn't file ROC since incorporation, date of incorporation is 16/08/2016 & he didn't appoint auditor too. Company didn't make any type of transactions. My query is:

Can I change company status from active to dormant...?

If yes, then he has to pay penalties or not...?

Or there is any other best solution please specify(like FTE etc.)
Replies (4)
Not ,you cant change status of company
Any reason...??
company shuold be registered under section 455
To register a new company as dormant or change the trading status from active to dormant, you must contact your local corporation tax office in writing, stating the date from which it has been or will be dormant. You can find these contact details on any official letter from HMRC that has been delivered to your registered office address. Alternatively, you can locate your nearest tax office. Within approximately 15 days, you should receive notification at the registered office address that states acceptance of this dormant status.

If your company was previously trading, HMRC will send a ‘Notice to deliver a Company Tax Return’ after you have contacted your local corporation tax office. This must be completed for the corporation tax accounting period prior to it becoming dormant. It must be delivered to HMRC online. You will have to pay any corporation tax that it owes if it made a profit during that time. You should also close down your payroll and cancel your VAT registration, if applicable.

Before declaring your company as dormant, you should ensure all outstanding bills have been paid, including directors’ salaries, employees’ wages, shareholders’ dividends, direct debits for service providers, and all accounts with suppliers. If it is owed any money from clients, you should arrange to have these accounts settled.

Upon satisfying all the above, you should not have to contact HMRC again until it begins trading.


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