Accounting WEB
Editorial team
Share this content

Fees for dormant company

Fees for dormant company

We have a dormant company on our books. The directors pay for the annual return fee and for the completion of the dormant accounts return for companies house. Can anyone advise on the best way to account for these fees while the company remains dormant and how they should be accounted for once trading commences.

Ann Lewis


Please login or register to join the discussion.

10th Feb 2002 21:11

Just realised the question is one year old!

I have just noticed that this question was posted exactly 1 year ago and Peggy was browsing the AWEB (after watching the African Nations championship Final in which Cameroon became the champions on dreaded penalties!) to find the answer to her immediate problem. She was really determined and so perhaps I have given her the direction.

You must have also figured out my browsing habits. I pick up the questions from the "Latest Answers List" and so it is imperative for the webmaster to keep this updated at all times.

Jim Greenwood has been proved wrong! in that he said people don't go more than two months to find the solution or something similar. Peggy went back one year


PS Liverpool are still hanging on SECOND but Arsenal have a game in hand!

Thanks (0)
10th Feb 2002 21:00

Perhaps this should help:


Reference material for Dormant companies can be found here:

Sample Accounts

Dormant Company Accounts (for financial years ending on or after 26th July 2000)

Dormant Company Accounts (for financial years ending before 26th July 2000)

Ann Lewis,
Generally, directors are responsible for meeting the costs of such companies. As you may know, pre-trading expenditure incurred by the company within seven years before the start of the trade can be treated as paid on the first day of trading. Such expenses should be such that they would have been allowable if incurred by a normal trading company. The statutory reference to this is TA 1988 s 401.

Hope this helps.

Thanks (0)
13th Feb 2001 22:33

Keep costs outside the company
I am a Director of a company that has been dormant since 1985. The three shareholders/Directors contribute to the only cost which is the Annual Return filing fee of £15.

Companies House just want the money and as the Company has not paid it there is no entry required in the Company's accounts.

I draw up the Annual Accounts myself for free. I only change the dates as the numbers have remained the same since 1985. Hardly an onerous task!

More recent Regulations have made it possible to incur such costs without a Company losing its dormant status but I see no reason to change. The Regulations as Angela Hodgson shows are full of if's, notwithstanding's and whereas' and not worth reading.

Thanks (0)
10th Feb 2001 17:24

DCA return form indicates the company does not bear this cost
Guidance on the DCA (Dormant Company Accounts) form appears to be quite clear. Note (e) on the form for accounting periods ending after 26 July 2000 states "A fee or penalty raised on the company for the payment of an annual return (form 363) fee, change of name fee, re-registration fee, or late filing penalty may be omitted from the company records and this DCA form - if the payment was made by a third party without any right of reimbursement." Guidance note (e) on the old form (for accounting periods ending before 26 July 2000 states "The annual return fee may be omitted from the company records and the annual accounts is borne by other parties, such as the directors, without any right of reimbursement, thus entitling the company to retain its dormant status".

Thanks (0)
Share this content