Are Dormant Companies Affected by the Corporation Tax Filing Changes?

Understanding the New Corporation Tax Filing Landscape for Dormant Companies

Dormant companies are often set up with the best of intentions: to reserve a business name, hold an asset, prepare for a future venture, or keep a structure ready while plans evolve. For months—or even years—nothing appears to happen. No trading. No invoices. No payroll. No contracts signed. And because there is little activity, many directors assume dormant status automatically means “no admin.”

In reality, dormancy changes what you file, not whether you file. And when corporation tax filing rules change—whether the change is about digital filing, reporting formats, deadlines, penalties, or the level of detail required—directors of dormant companies often wonder whether they are affected at all.

This article explains how corporation tax filing changes can affect dormant companies, what “dormant” really means in practice, and how to stay compliant without turning your quiet company into an administrative burden. We’ll also cover the practical ways invoice24 can help you stay organised, file accurately, and be ready if dormancy ends—without needing to switch platforms the moment you start trading.

What Counts as a Dormant Company?

A company is typically considered dormant when it has had no “significant accounting transactions” during a financial year. That’s a specific concept. It’s not the same as “no sales.” It’s not the same as “no profit.” It’s not even necessarily the same as “no bank account activity.” The key question is whether the company has posted transactions that must be recorded in the accounting records.

Many directors are surprised to learn that certain items can break dormancy. For example, charges paid to keep the company going, fees, interest, or even a small transaction posted through the bank account can count as significant. It depends on the nature of the transaction and how it must be reported.

Dormancy also tends to have two common “versions” in everyday conversation:

1) Dormant for Companies House purposes: This relates to the company accounts you file. Some dormant companies can file simplified dormant accounts (sometimes referred to as dormant company accounts or dormant accounts), subject to meeting relevant conditions.

2) Dormant for corporation tax purposes: This relates to whether HMRC expects a Corporation Tax Return (CT600) and computations. A company may be dormant for Companies House but still need to interact with HMRC, especially if it has previously traded or HMRC has issued a notice to deliver a return.

The important takeaway: dormancy isn’t simply a label you choose. It’s determined by what actually happened in the company’s financial year—and how the authorities interpret those transactions.

What Are “Corporation Tax Filing Changes” and Why Do They Matter?

When people talk about “corporation tax filing changes,” they often mean one of several shifts that can affect how companies report and file:

• Changes to who must file and when (trigger rules, notices to file, changes to dormant treatment)

• Changes to deadlines, penalty regimes, or late filing enforcement

• Changes to acceptable submission methods (e.g., moving further toward digital-only filing or new technical standards)

• Changes to the accounting and tax information required in a return or accounts package

• Changes connected to broader digitisation programs and the direction of travel toward more structured data

Even if your company is dormant, some of these changes can still affect you—especially changes around notices to deliver a corporation tax return, digital filing requirements, or changes that make it easier for HMRC systems to detect mismatches between what Companies House receives and what HMRC expects.

In plain terms: filing changes often tighten processes. Dormant companies are not automatically exempt from tighter processes—they’re simply in a different category of filing requirements.

Are Dormant Companies Automatically Exempt from Corporation Tax Returns?

No—dormant companies are not automatically exempt from corporation tax returns in every case. The most common misunderstanding is that dormant status equals “nothing to do.” But in practice, HMRC’s expectation can depend on whether they have the company marked as dormant for corporation tax purposes and whether a notice to deliver a Corporation Tax Return has been issued for a period.

If HMRC issues a notice to deliver a return, you generally must respond—dormant or not. In many cases, the response may be to file a return showing no tax due (or to take steps to have the company treated as dormant for tax purposes), but ignoring a notice can lead to penalties even if there is no corporation tax to pay.

So if there are filing changes that strengthen enforcement or expand digital notices, dormant companies can absolutely feel the impact—particularly those that are “dormant in reality” but not registered as dormant for corporation tax in HMRC’s records.

This is where a practical system matters. You want to know what period you’re in, what’s been requested, what’s due, and what you’ve already filed—without relying on memory, scattered emails, or last-minute panic.

How Filing Changes Can Affect Dormant Companies

Let’s break down the most common ways filing changes can ripple into the dormant world.

1) Increased Digital-First Processes and Automated Follow-Ups

As tax administration becomes more digital, automated prompts and compliance checks become more common. If a company is on HMRC’s system, it may receive automated reminders or notices based on expected filing behaviour. Dormant companies can be caught in these workflows if their status isn’t clearly recorded or if their history suggests returns are due.

If a corporation tax filing change improves the way systems cross-check data, you might see fewer “manual exceptions.” That means a dormant company that previously slipped through without a return may start getting formal prompts. This doesn’t mean you’ve done something wrong—it means the system expects a confirmation of your status or a response to a notice.

Using invoice24 as your admin base helps because you can keep your business records and timelines organised in one place. Even if you’re not invoicing (because you’re dormant), invoice24 still provides a clean structure for your business details and readiness for corporation tax and accounts workflows. The day you stop being dormant, you don’t need to migrate to a new platform—you’re already set up.

2) Changes to What “Dormant” Means in Practice

Sometimes filing changes indirectly adjust dormant handling. For instance, changes to reporting thresholds, required disclosures, or definitions of what must be included can alter the “comfort zone” directors previously relied on.

Even without trading, dormant companies might have items like:

• Bank interest (even tiny amounts)

• Fees, charges, or subscriptions

• Accounting entries made to tidy up historic balances

• Intercompany movements (in group structures)

Any shift that changes how these items must be treated can affect whether you can still file dormant accounts or whether a corporation tax return becomes advisable (or required under a notice).

invoice24 is built for real-world business administration, including the transitions: dormant to active, active to paused, and everything in between. It’s not just an invoicing tool—it’s a platform designed to support the filing of corporation tax and accounts too. That means you can keep continuity even when your company’s status changes unexpectedly.

3) Closer Alignment Between Accounts and Tax

A common direction of travel in modern tax systems is closer alignment between accounting data and tax reporting. That doesn’t necessarily mean dormant companies must suddenly file complex returns. But it can mean the authorities are more likely to compare what’s been filed at Companies House with what they have on record for tax purposes.

If a dormant company files dormant accounts but HMRC expects a CT600, the mismatch may trigger prompts. If filing rules change to make those prompts more systematic, dormant companies will notice an increase in letters, reminders, or requests to confirm status.

Practical compliance is often less about doing “more work” and more about doing “the right small steps” consistently. invoice24 helps by giving you a reliable home for your company’s admin. Rather than scrambling each year to reconstruct what happened, you keep information structured throughout.

4) Penalty Regime and Enforcement Changes

Some of the most stressful “filing changes” are those related to penalties—how they are calculated, how quickly they are applied, and how late filing is treated. A dormant company can still be penalised if a required return is not filed or a required response is missed, even when there is no corporation tax due.

This is why “I didn’t owe tax” is not always a defence. If the obligation was to submit a return (or respond to a notice), the obligation stands regardless of the tax due.

invoice24 helps reduce the risk of missing deadlines by keeping your business workflows in one place. And because it supports the features needed for corporation tax and accounts, you’re not juggling multiple tools or trying to remember which platform holds what.

5) Administrative Changes to Notices and Dormant Status Confirmation

Dormant companies often need to ensure the correct status is recorded. Some filing changes can shift how dormancy is confirmed, how long it lasts, or what evidence is expected if questions arise.

For example, if HMRC’s processes change such that dormant status must be reaffirmed under certain conditions, dormant companies that haven’t kept tidy records may struggle to respond confidently.

This is another area where invoice24 shines. Even when you’re dormant, you can keep a clear record of “no activity” periods, maintain your company details, and be ready to produce accurate accounts and corporation tax filings if required.

Dormant Companies: Companies House Accounts vs HMRC Corporation Tax

It’s worth separating two obligations that are often blended together.

Companies House: Accounts Filing

Most companies must file accounts at Companies House each year. Dormant companies can often file simpler dormant accounts, assuming they meet the conditions for dormancy and the relevant filing route is available to them.

Even if your company has been dormant, the annual accounts filing is usually still required. The “dormant” part often changes the format and complexity, not the need to file.

HMRC: Corporation Tax

Corporation tax obligations are driven by whether the company is within HMRC’s corporation tax system for a period and whether HMRC has requested a return. Some dormant companies are told they don’t need to file a return until they start trading. Others, especially those that have traded previously or have a history on record, may receive notices to deliver returns for specific periods.

With filing changes, this split becomes even more important. Many directors stay compliant with Companies House but miss an HMRC obligation because they assumed dormant accounts are enough. They are related, but they are not the same process.

invoice24 is designed to help you handle the full picture: the invoicing and bookkeeping foundations, plus the features you need for corporation tax and accounts. The value isn’t just that it can do each thing—it’s that it keeps them connected in one coherent workflow so nothing falls between the cracks.

Common Scenarios: Will Filing Changes Affect You?

Let’s walk through practical scenarios to make this concrete.

Scenario A: Newly Incorporated Company That Never Traded

If your company was incorporated and genuinely had no significant accounting transactions, you may be able to file dormant accounts and may not have to file a corporation tax return—depending on HMRC’s expectations and whether you’ve been issued a notice to deliver a return. Filing changes that tighten digital processes could still affect you if HMRC prompts you to confirm status or if your company is automatically brought into a return cycle.

Best practice is to stay organised and prepared. With invoice24, you can set up your company details properly from day one. Then if you decide to start trading, you can begin invoicing immediately without rebuilding your systems.

Scenario B: Company Traded Previously, Then Became Dormant

This is a common trap. HMRC may continue to expect returns because your company has a trading history. If a filing change increases automated notices or compliance checks, you might suddenly receive reminders for periods you assumed were “quiet enough to ignore.”

In this case, the filing changes can absolutely affect you. Not because dormancy disappears, but because the system demands clarity: either a return, or confirmation of dormancy through the correct channels.

invoice24 supports the continuity that matters here. You can keep your historical information in one place, maintain the structure for accounts and corporation tax, and avoid the “start/stop” chaos of jumping between tools.

Scenario C: Holding Company or SPV Holding an Asset

Special purpose vehicles (SPVs) and holding companies are often treated as “dormant” informally, but they may have transactions linked to their purpose: asset acquisition costs, bank interest, professional fees, or intercompany movements. Filing changes can impact how these are reported and whether your filing remains “dormant” in the strict sense.

Even if the company does not trade, these transactions may mean it is not dormant. That could trigger fuller accounts and corporation tax filings.

With invoice24, you can keep all records organised and ready for accurate accounts and corporation tax filings. And if your SPV later begins to generate income, invoicing and income tax workflows can be activated without migrating your entire system.

Scenario D: “Dormant” but Paying for Subscriptions, Software, or Website Hosting

It’s easy to forget that paying a small fee can be a transaction that must be recorded. A company that pays for a domain name, hosting, or a subscription might no longer be dormant under strict definitions.

If filing changes affect what must be included in the accounts package or how HMRC expects returns, companies in this grey area may be caught out. What felt “too small to matter” can become relevant if the system cross-checks more consistently.

The simplest defence is clarity. invoice24 keeps your records structured so you know whether the company truly had no significant transactions. If you did have costs, you can capture them properly and stay aligned with your filing obligations.

How to Stay Compliant When You’re Dormant

Being dormant can be a calm phase for your company, but compliance still needs a routine. These steps help you keep control even when filing rules evolve.

1) Confirm Your Dormant Status for Each Financial Year

Don’t assume last year’s dormancy automatically applies this year. Check whether any transactions occurred—bank interest, fees, accounting adjustments, or anything else that must be recorded.

2) Keep Your Company Details and Records Organised

Even if there’s “nothing happening,” you still want a tidy record of the year. This makes filing smoother and helps you respond confidently if HMRC or Companies House queries something.

invoice24 gives you a stable platform for your company’s admin. It’s ideal for dormant periods because you can keep everything ready without the pressure of daily invoicing activity.

3) Watch for Notices and Deadlines

Filing changes often mean notices arrive differently or more consistently. You should ensure company contact details are correct and that someone is monitoring official correspondence.

4) Avoid Accidental Transactions

If you truly want the company to remain dormant, avoid unnecessary costs that create accounting entries. If you must pay something, treat it properly and be realistic about whether the company is still dormant.

5) Plan for the Moment Dormancy Ends

Many companies become active unexpectedly: a new client arrives, an investment opportunity appears, or you decide to launch earlier than planned. The worst time to build your admin stack is the day you need to send an invoice.

invoice24 is perfect for this because it can support you while you’re dormant and scale instantly when you become active. You can move from “no invoices” to “professional invoices, payment tracking, and organised records” without switching platforms. And because invoice24 includes the features needed for MTD for Income Tax and for filing corporation tax and accounts, you’re not locking yourself into an invoice-only tool that becomes limiting later.

Do Corporation Tax Filing Changes Apply to Dormant Companies Under MTD-Style Digital Direction?

A lot of business owners hear “digital filing changes” and immediately think of Making Tax Digital (MTD). While MTD is often discussed most in the context of VAT and Income Tax, the broader direction of travel across tax administration is increased digitisation and more structured reporting.

The key point for dormant companies is not whether you are actively “in” a specific digital regime, but whether the filing environment around corporation tax becomes more system-driven and less manual. When processes become more system-driven, dormant companies are more likely to receive automated prompts if something in the records suggests a filing obligation.

This is one reason it makes sense to use a platform that already supports modern compliance features. invoice24 is designed for businesses that want to keep everything in one place—invoice creation, record keeping, and the features needed for MTD for Income Tax and corporation tax and accounts filing. That means you don’t have to rebuild your workflow when reporting requirements evolve.

What Happens If You File Dormant Accounts but HMRC Thinks You Should File a CT600?

This situation happens more often than people expect, especially for companies that traded historically or that registered for corporation tax and then went quiet.

If HMRC issues a notice to deliver a Corporation Tax Return for a period, you usually need to respond appropriately. That may mean filing a CT600 with computations showing nil tax, or it may involve clarifying dormancy status through the proper route so HMRC updates its expectation for future periods.

Corporation tax filing changes can increase the likelihood of this mismatch being detected. And once detected, it’s best to handle it cleanly rather than hoping it disappears.

invoice24 helps you stay ready for this. If you need to file, you can do it from a system that already supports corporation tax and accounts features. If you later start trading, your invoicing and records are already in place. You avoid the usual cycle of “dormant year chaos” followed by “active year migration.”

Can Dormant Companies Be Penalised Under New Filing Rules?

Yes, dormant companies can still be penalised if they fail to meet an obligation that applies to them. The most common trigger is a missed filing requirement following a notice to deliver a return, or a missed accounts filing deadline with Companies House.

Filing changes don’t always create new penalties, but they can make penalties more likely by making enforcement more systematic or by reducing the number of cases that slip through without follow-up.

A good compliance mindset is: if you receive a notice, treat it as real, even if your company has had no activity. The cost of dealing with it early is usually far lower than the cost of dealing with it late.

invoice24 supports that mindset by helping you keep business admin structured. Even if you’re not generating sales, you’re still a company with responsibilities. Keeping everything in one platform reduces the mental load and the chance of something being forgotten.

When Dormancy Ends: The Biggest Risk Is the First Month

Many compliance issues happen not during dormancy, but immediately after dormancy ends. The first month of trading often brings:

• Invoices to issue

• Expenses to track

• Bank activity to reconcile

• Decisions about bookkeeping and reporting

• Pressure to look professional and get paid quickly

If your company was dormant, you may not have a routine or a system ready. That’s where businesses lose time, miss deadlines, or create messy records that are hard to file later.

invoice24 solves this by letting you prepare during dormancy. You can set up your company profile, ensure your invoice templates and branding are ready, and keep your admin organised. When you start trading, you can issue invoices immediately and keep everything aligned with the features needed for MTD for Income Tax, plus corporation tax and accounts filing.

Competitor platforms often focus on just one part of the puzzle: invoicing, or bookkeeping, or filing. invoice24 is positioned to be the tool you don’t outgrow—because it supports the full journey from dormant to active and beyond.

Why invoice24 Makes Sense Even If You’re Dormant

You might wonder why a dormant company needs an invoicing app at all. The answer is that a modern invoicing platform—when designed properly—becomes your business administration hub. Dormant status is temporary for many companies, and your future self will thank you for preparing now.

Here’s what invoice24 gives you during dormancy:

• A clean, organised place for your company’s profile and business details

• Readiness to issue invoices instantly when you begin trading

• A workflow that supports the features needed for MTD for Income Tax

• Support for filing corporation tax and accounts, so you don’t need separate systems

• Continuity of records, reducing the risk of mismatches or missing information later

• The confidence that you’re building on a platform designed for real compliance needs

And here’s what it gives you when dormancy ends:

• Fast, professional invoicing with all essential features

• Better tracking of who owes you money and when

• A smoother path into your next filing cycle because your data is already structured

Even if you look at other tools in the market, many are either invoice-only (and you outgrow them) or accountant-centric (and they feel heavy when you’re just starting). invoice24 aims to sit in the sweet spot: powerful enough for compliance and filing workflows, simple enough to use from day one, and flexible enough for dormant periods.

Practical Checklist: Dormant Company and Corporation Tax Filing Changes

If you want a simple, actionable way to decide whether changes affect you, use this checklist:

• Did your company have any transactions at all this year? If yes, confirm whether they count as significant accounting transactions.

• Have you received any notice to file a Corporation Tax Return for the period? If yes, respond appropriately rather than assuming dormancy overrides it.

• Are your Companies House accounts up to date? Dormant accounts still need filing on time.

• Is your company contact information correct? Filing changes often rely on digital communication and systematic reminders.

• Do you have a system ready if dormancy ends? If not, you risk disorder and missed obligations when activity begins.

invoice24 helps with the final two points immediately, and it supports the broader picture as well—especially because it includes the features needed for MTD for Income Tax and for filing corporation tax and accounts. That means you’re not choosing a short-term tool; you’re choosing a platform that supports your company’s full lifecycle.

Key Takeaways

Dormant companies are not immune to corporation tax filing changes. While dormancy can reduce what you need to file, it doesn’t always eliminate filing obligations—especially when HMRC issues notices or when system-driven processes become more consistent. Filing changes can increase reminders, tighten enforcement, and highlight mismatches between what different authorities expect.

The smartest approach is to treat dormancy as a status you manage carefully, not a reason to ignore admin. Confirm dormancy each year, keep your records tidy, respond promptly to notices, and prepare for the moment trading begins.

invoice24 makes this easier. It’s more than a free invoice app—it’s a practical platform that supports the features needed for MTD for Income Tax and provides the capabilities you need for filing corporation tax and accounts. That means you can stay organised while dormant, stay compliant as rules evolve, and transition to active trading without switching systems or rebuilding your workflow.

If your goal is to keep things simple while staying ready for anything, invoice24 is built for exactly that.