Quick answers
- Can a dormant company have a bank account?
Yes. Holding an account does not stop a company being dormant. - Does a single £5 bank charge stop a company being dormant?
For Companies House, usually yes. The test is about transactions, not amounts, and bank charges are not one of the ignored items. - Does bank interest stop a company being dormant?
Yes. HMRC counts getting interest as activity for Corporation Tax, and for Companies House interest received is a transaction the company should record. - If a director pays the bank fee personally, is the company still dormant?
Not necessarily. The expense still belongs to the company, and the director has paid it on the company's behalf, so it needs recording and review before you choose dormant accounts.
In more detail
Bank charges are not on that list, so a company that paid them is usually not dormant for Companies House, and its records need review before choosing dormant accounts.
Can a dormant company have a bank account?
Yes, a dormant company can have a bank account. Companies House's dormancy test looks at transactions in the financial year, not at whether an account exists. An account that holds the subscribers' share money and shows no other movement does not, on its own, stop the company being dormant. What matters is what passes through it.
Look at every line on the statements for the whole accounting period, including months with no activity. A quiet account still needs its opening and closing balances to match the accounts.
Source: Dormant for Companies House
Does a bank charge stop a company being dormant for Companies House?
Usually, yes. A bank charge stops a company being dormant for Companies House because it is a transaction the company should enter in its accounting records, and it is not one of the three items GOV.UK lets you ignore. The test is about transactions, not a minimum amount, so a small fee still counts.
Having only one transaction does not automatically make dormant filing appropriate. Treat any bank fee as a reason to review the non-dormant accounts route before filing.
Does bank interest count?
Yes, bank interest counts against dormancy, and for both tests. For Corporation Tax, HMRC says trading includes "buying, selling, renting property, advertising, employing someone or getting interest", so a company receiving interest is not dormant for HMRC. For Companies House, interest received is a transaction the company should record, and it is not on the list of ignored items.
Check whether the account pays interest, even a few pence, before treating the company as dormant.
Source: Dormant for Corporation Tax
Can a company be dormant for HMRC but not for Companies House?
Yes, a company can be dormant for HMRC but not for Companies House. HMRC asks whether it traded or had other income, such as interest. Companies House asks whether there were any significant accounting transactions. A company that only paid bank charges may have no trade or income for HMRC, yet still have a transaction to report to Companies House.
Check each test separately. Telling HMRC the company is dormant does not decide which accounts to file at Companies House. See what a dormant company is for both tests side by side.
Source: Dormant for Corporation Tax
What Companies House ignores vs what counts
The first three rows are the items GOV.UK says do not count as significant transactions. The other rows apply the same test to common items on a quiet company's records.
| Item | For Companies House dormancy |
|---|---|
| Filing fees paid to Companies House | Ignored (GOV.UK list) |
| Penalties for late filing of accounts | Ignored (GOV.UK list) |
| Money paid for shares when the company was incorporated | Ignored (GOV.UK list) |
| Bank charges | Counts: not on the list |
| Bank interest received | Counts: not on the list |
| Expenses paid for the company, by anyone | Counts: the expense belongs to the company |
| Loans to or from a director | Counts: a balance the company records |
Source: Dormant for Companies House
Read the statement line by line: a £100 example
Make a short list of each movement: date, description, amount and the document that explains it. Mark items you cannot identify instead of guessing. Include interest, subscriptions and transfers involving directors.
Imagine a statement starts at £100, shows a £5 fee and ends at £95. The fee explains the bank movement, but it does not explain the company's opening capital or every other balance. Record the fee and gather the missing opening information before treating a draft balance sheet as complete. A quiet bank statement also cannot show whether anyone paid a company bill personally, whether an invoice is unpaid or whether the company owns an asset.
Check records beyond the bank
Bank statements show only part of the picture. Ask whether anyone paid a company bill personally, whether an invoice remains unpaid, whether the company owes or is owed money by a director, and whether it owns an asset. Gather the relevant invoices and previous accounts alongside the statements.
A clear list of transactions answers two questions: which accounts the company should file, and how much work is needed to prepare them. It also lets a reviewer give a quotation based on the actual work, not the size of the closing bank balance.
What should I do if my dormant company paid bank fees?
If a company you thought was dormant paid bank fees, review the records for the whole period before choosing an accounts route. A company with transactions to report files accounts that show them, and many small companies can use the simpler micro-entity rules. Your options are below.
- Review the records for the whole accounting period and list every transaction, including any paid outside the account.
- If there were transactions, prepare non-dormant accounts. See how to file micro-entity accounts and micro-entity vs dormant accounts.
- For future years, consider whether the company needs an account that charges fees, or whether to close the account if it is not needed.
Source: Annual accounts: micro-entities, small and dormant companies
Get the filing route checked
SimpleFilings' £4.99 service is for qualifying dormant accounts. If the company paid bank charges or received interest, use the chat to explain the activity and ask to speak to us. We can discuss which records are needed and a separate quotation where other accounts are required. There is no automatic approval based on a low transaction count. When the company does qualify, see how to file dormant company accounts.
Frequently asked questions
Can a dormant company have a bank account?
Yes. Holding an account does not stop a company being dormant. What matters is whether any transactions pass through it, such as fees or interest, other than the few items Companies House ignores.
Does a single £5 bank charge stop a company being dormant?
For Companies House, usually yes. The test is about transactions, not amounts, and bank charges are not one of the ignored items. Review the records before choosing dormant accounts.
Does bank interest stop a company being dormant?
Yes. HMRC counts getting interest as activity for Corporation Tax, and for Companies House interest received is a transaction the company should record.
If a director pays the bank fee personally, is the company still dormant?
Not necessarily. The expense still belongs to the company, and the director has paid it on the company's behalf, so it needs recording and review before you choose dormant accounts.
What accounts do I file instead of dormant accounts?
Accounts that report the transactions. Many small companies qualify as micro-entities. See how to file micro-entity accounts.
Official sources
4
- Dormant for Companies House
- Life of a company: part 1 accounts
- Dormant for Corporation Tax
- Annual accounts: micro-entities, small and dormant companies
Written and checked by SimpleFilings against these official pages. Last checked . SimpleFilings is operated by ONAF Limited (company number 12589383), an independent firm, not part of Companies House, HMRC or the government.