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Companies must actively inform HMRC when transitioning from a non-trading or dormant status to becoming active for Corporation Tax purposes. This reactivation process can be completed using HMRC Online Services, where the necessary information should be provided.

When a company that has previously traded decides to cease trading, it is generally considered dormant. A dormant company can remain inactive indefinitely, but this status incurs costs, and specific filings must still be submitted to Companies House. It’s worth noting that reactivating a dormant company is typically more cost-effective than establishing a new one.

To resume trading, companies must follow these steps:

  1. Inform HMRC about the resumption of trading by re-registering for Corporation Tax.
  2. Submit accounts to Companies House within 9 months after the company’s year-end.
  3. Settle any Corporation Tax obligations within 9 months and 1 day following the company’s year-end.
  4. File a Company Tax Return, including complete statutory accounts, with HMRC within 12 months after the company’s year-end.
While the reporting dates for annual returns and accounts remain unchanged, it’s crucial to note that the Corporation Tax accounting period differs. It is determined by the date when the company resumes its business activities. This active engagement ensures compliance and proper documentation for the company’s financial records.
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023
Source: Companies House | 09-10-2023