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What Happens if a Limited Company is Not Trading?

If a Limited Company is not trading, it’s considered dormant by HMRC. You must inform HMRC that the company is inactive and not earning income. While dormant, the company still needs to file a confirmation statement and dormant accounts with Companies House. No Corporation Tax returns are required during this period. The company can remain dormant for as long as needed and can be reactivated later for trading.

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