What does it cost to keep a dormant company each year?

Two items: the confirmation statement's £34 government fee, and getting the dormant accounts filed — £80 + VAT with us, or free if you file the AA02 yourself and are confident it's the right form for your situation. Realistically a fully-handled dormant company costs around £130 a year to keep alive.

Can I file dormant accounts myself for free?

If the company has never traded and is limited by shares, the AA02 web filing is genuinely simple and free. The catch is eligibility: a company that traded before going dormant can't use AA02 and must file dormant accounts showing its last balance sheet position — that's where DIY filings go wrong and get rejected.

Is it cheaper to just dissolve the company?

If you have no future use for it — usually yes. Voluntary strike-off costs £33 online (form DS01) as a one-off, versus ~£130 a year to stay dormant. Keep the company when the name, brand or history has value to you; dissolve it when it doesn't. Don't just stop filing — that route ends in penalties and compulsory strike-off.

What happens if I just ignore a dormant company?

The penalties are the same as for trading companies: £150 rising to £1,500 for late accounts, doubling for repeat years, plus eventual compulsory strike-off for the unfiled confirmation statement. 'It's dormant' is not a defence — a £80 filing beats a £150+ penalty every time.

Dormant Company Accounts Cost

What a dormant company costs per year

Limited company accounts and Companies House filing, in navy and gold

The annual cost, itemised

Item	Cost	Frequency
Dormant accounts prepared & filed (us)	£80 + VAT	Yearly
Confirmation statement (government fee)	£34	Yearly
HMRC dormancy notification	Included	Once, when going dormant
Registered office service (optional)	Ask us	If you don’t want your home address public

Dormant vs dissolving — the money question

A dormant company costs ~£130 a year indefinitely. Dissolving costs £33 once (online DS01), after which the name is available for anyone to register. So the real question is what the company protects: a brand you’ll relaunch, a name competitors would take, a clean company with history worth restarting. If the honest answer is “nothing”, dissolve it properly rather than paying — or worse, drifting into penalties.

The full dormant company guide

What our £80 fee covers

Confirming the company actually qualifies as dormant (the step DIY filers skip)
The correct dormant accounts — AA02 for never-traded companies, balance-sheet accounts for previously-trading ones
Filed with Companies House with confirmation to you
A reminder before next year’s deadline

Add the confirmation statement and HMRC dormancy handling and the whole company runs on autopilot — call 0114 327 1480.

Dormant company service