Digital Tax Service · Guidance

How to restart a dormant company

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Restarting a dormant company and trading again, in navy and gold

What counts as 'restarting'

There’s no button to press — the company reactivates itself the instant it has a significant accounting transaction: raising an invoice, paying a supplier, receiving trading income. From that moment the dormant rules no longer apply and the active-company obligations kick in.

What made it dormant in the first place

The steps to reactivate

  1. Tell HMRC within 3 months of starting business activity so it sets up or reactivates your Corporation Tax record
  2. Set up PAYE before your first payday if you’ll take a salary
  3. Register for VAT if you’ll pass the £90,000 threshold (or choose to voluntarily)
  4. Restart bookkeeping from day one — keep company and personal money separate
  5. Diarise the new deadlines — your first full accounts and CT600 after the trading period

Registering for Corporation Tax

Your accounts change back to full

The year in which trading resumes needs full accounts (micro-entity or small company) rather than the dormant set, plus a Corporation Tax return covering the trade. If part of the year was dormant and part trading, the accounts cover the whole period but only the trading part bears tax. We make sure the switch is handled cleanly.

Our accounts service

Reactivate without the admin headache

We handle the HMRC notification, the Corporation Tax, PAYE and VAT set-ups, your bookkeeping and the first full year-end — so restarting is about your business, not paperwork. Call 0114 327 1480.

Starting fresh instead? Company formation support

Frequently asked questions

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