Taking a sabbatical from my limited company — what filings still need doing?

A sabbatical pauses your work, not the company. As long as the company exists, Companies House and HMRC deadlines continue on their normal timetable, even if there is no income for six months. The most common trap is assuming that no trading means no filings. It does not, unless the company has formally become dormant and you have filed the correct dormant accounts.

Start with Companies House. Annual accounts are still due, and the confirmation statement is still due each year. If the company has truly had no significant accounting transactions, dormant accounts may be appropriate, but bank charges, insurance payments, or money taken out can break dormancy. If it is not dormant, full or micro-entity accounts are still required. Keep the registered office address monitored, maintain statutory registers, and record any changes promptly.

For corporation tax, HMRC will still expect a company tax return if a notice to file has been issued, even for a period with little or no profit. Do not ignore a return because the company made nothing. If the accounting period ends during your break, the return and any payment date remain fixed.

VAT does not pause either. If you remain VAT-registered, you must continue to file returns for each period, including nil returns if there are no sales or purchases. Deregistering temporarily is possible only if you meet the deregistration conditions, and re-registering later is a fresh process. For a six-month break, continuing with nil returns is often simpler than deregistering and re-registering.

You can pause your monthly salary, but payroll does not simply vanish. If no employees are paid in a period, follow your payroll software and HMRC reporting requirements, and do not assume the PAYE scheme closes itself. Taking money from the business bank account is not automatically a dividend: a dividend needs distributable profits and proper paperwork, including minutes and a dividend voucher. Money taken without that may be a director's loan, with tax consequences. Before you leave, agree a checklist with your accountant, set calendar reminders for every deadline, confirm who can receive Companies House and HMRC correspondence, and leave a buffer for insurance, bank charges and filing fees.