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Strike off or go dormant? Choosing what to do with a quiet company

Reviewed by Lee Jones, Founder · Updated 17 July 2026
The short answer

If your company has stopped for good and owes nobody anything, striking it off is cheap and final: settle up with HMRC, send one form with an £18 fee, and a few months later the company no longer exists. If you might use it again, going dormant keeps it alive for a small yearly chore.

Official source. This guide is a plain-English summary of official GOV.UK guidance, not advice. The authoritative source is Strike off your company on gov.uk. Always rely on that over our summary.

What is the actual difference?

Strike off removes your company from the Companies House register. It stops existing, completely. No more filings, ever, but no way back except a formal restoration.

Dormant means the company stays on the register but goes to sleep. It keeps its name, number and history, and nobody else can register that name while yours holds it. In return, you do a little yearly paperwork.

Which one should I pick?

Choose strike off if:

  • the company is finished and you will not use it again
  • the name means nothing to you
  • the money and assets are out and everything owed, including tax, is paid
  • you never want to think about company paperwork again

Choose dormant if:

  • you might trade through it again, even "maybe, one day"
  • you want the name parked so nobody else can take it
  • you are pausing, not stopping
  • you would rather pay about £50 a year than close and restart later

If you are torn, pick dormant. It is the reversible choice. Strike off is one way only.

How does strike off work, step by step?

  1. Tie up the loose ends with HMRC first. File final accounts and a final Company Tax Return, stating these are the final trading figures, and pay all Corporation Tax and any other tax owed. Had staff? Tell HMRC the company has stopped employing people.
  2. Empty the company. Share out any assets among the shareholders and close the bank account before you apply. Anything left at strike off passes to the Crown, including bank balances and payments that arrive later, such as tax refunds.
  3. Check you qualify. In the last 3 months the company must not have traded, sold off stock, or changed its name. It must not be threatened with liquidation, and must have no agreements running with people it owes.
  4. Send form DS01 to Companies House. It costs £18, and a majority of the directors must sign.
  5. Tell everyone affected within 7 days. Send a copy of the application to the shareholders, anyone the company owes money to, any employees, and any director who did not sign.
  6. Wait out the notice. Your request is published in The Gazette. If nobody objects within the 2 months in the notice, the company is struck off; a second notice confirms it no longer exists.

The order matters. Skip step 1 and the people you owe, HMRC included, can object during that 2-month window and stop the whole thing.

What does the dormant yearly routine look like?

  • Tell HMRC the company is dormant for Corporation Tax. If HMRC has already sent a notice to file a return, you still file that one; it shows them the company was dormant for the period.
  • File a confirmation statement at least once every 12 months. It costs £50 online (£110 by paper) and confirms your company details are up to date.
  • File dormant accounts each year. For a small dormant company these are a much simpler set, with no auditor's report needed.

To stay dormant, the company must genuinely do nothing: no significant money in or out. The Companies House filing fee, a late filing penalty, and the money paid for shares at set-up do not count against you.

What are the traps?

  • Striking off with money still in it. The £2,000 you forgot in the company account goes to the Crown, and getting it back means paying to restore the company. Empty it first.
  • Striking off while owing tax. HMRC gets a copy of your application and can object, which blocks the strike off until the tax is settled.
  • A dormant company woken by accident. Dormant for tax means no income at all, even from investments, so a business account quietly earning interest can end the dormancy. If you are parking the company, park the bank account too.
  • Forgetting the yearly chore. Miss the confirmation statement and you risk a fine of up to £5,000, and Companies House can strike the company off anyway, on their timetable, not yours.

Common questions

Can I change my mind after strike off?

Not easily. A struck-off company no longer exists, and bringing it back means a formal restoration. If there is any "maybe" in your plans, go dormant instead.

Does dormant mean I file nothing at all?

No. Each year you file a confirmation statement and dormant accounts, and if HMRC asks for a Company Tax Return you file that too, showing the company was dormant.

Can I go dormant now and strike off later?

Yes, and it is a common path: park the company while you decide, then strike it off when you are sure.

Need the final return filed first?

Most strike-offs stall on the tax step. If HMRC wants a last Company Tax Return, it is a normal return and we file it: bank statement in, a few plain-English questions, £99, once, no subscription. Then you send the £18 form and close the door properly. Going dormant instead? Our dormant company guide covers the one return HMRC may still want.

Start your final return

And if your company still has a serious pot of money in it, an accountant is the better fit for getting that out well, and that is an honest call to make.

General guidance, not advice. This guide explains how the rules generally work for small UK limited companies. It isn't tax advice for your specific situation, if you're unsure, check with us or an accountant.