My Company Has No Revenue: Do I Need to Pay Corporation Tax?

Usually, a UK company with no revenue will not have Corporation Tax to pay because Corporation Tax is generally charged on taxable profits, not simply on the existence of a company. But “no revenue” does not automatically mean “no Corporation Tax obligations.” A company can have zero sales and still have taxable income, chargeable gains, or other activity that needs to be reported. Equally, a company that has never traded and has no income may qualify as dormant for Corporation Tax, in which case it may not need to pay Corporation Tax or continue filing Company Tax Returns after notifying HMRC of its dormant status.

The distinction matters for startups, founders who incorporated before launching, international entrepreneurs setting up a UK company in advance, and businesses that have temporarily stopped trading. This guide explains when a company with no revenue owes Corporation Tax, when it may be dormant, what happens if the company has expenses but no sales, and which filings you may still need to make.

Does a Company With No Revenue Pay Corporation Tax?

Not necessarily. Corporation Tax is based on a company's taxable profits and certain other taxable amounts, rather than simply its revenue. So a company with no sales revenue could have:

• No Corporation Tax liability
• A Corporation Tax liability from other income
• A chargeable gain
• A trading loss
• A requirement to file a Company Tax Return even though no tax is ultimately payable

For example, imagine a UK company has no customers and generates £0 in sales. However, it receives £2,000 of taxable interest or makes a taxable gain on an asset. The company cannot simply conclude that it has no Corporation Tax obligations because its sales revenue was zero.

HMRC generally considers a company active for Corporation Tax purposes when it is carrying on business activity, trading or receiving income. The first question should therefore be: Does the company genuinely have no taxable activity, or does it simply have no sales? Those are not always the same thing.

Revenue and Profit Are Not the Same Thing

One of the most common misunderstandings is treating revenue and profit as interchangeable.

Revenue is money generated from a company's ordinary business activities, such as selling products or providing services.

Profit is broadly what remains after allowable business costs and other relevant adjustments have been taken into account. For example:

This is why “my company has no revenue” is not enough information to determine whether Corporation Tax is payable.

When a Company With No Revenue May Be Dormant

A newly incorporated company that has not started trading may generally be dormant for Corporation Tax. HMRC says a company is usually dormant for Corporation Tax if it:

• Has stopped trading and has no other income
• Is a new limited company that has not started trading
• Falls into certain other specific dormant categories

For example, suppose you incorporated Global Digital Solutions Ltd in September. You intended to launch an online consultancy but postponed the launch. During the year:

• There were no customers.
• There were no sales.
• There was no investment income.
• The company did not trade.
• There were no other taxable business activities.

The company may qualify as dormant for Corporation Tax. In that situation, there may be no Corporation Tax to pay. However, there is an important administrative step: you should make sure HMRC knows the company is dormant where appropriate.

Do I Have to Tell HMRC My Company Is Dormant?

If your company is dormant for Corporation Tax, you can tell HMRC using its online dormant-company service. You generally need the company's:

• Name
• 10-digit Unique Taxpayer Reference (UTR)
• Date the company stopped trading, if it previously traded

Once HMRC has been told that the company is dormant, you generally do not need to file another Company Tax Return unless:

• HMRC asks you to file one, or
• The company starts trading again.

There is an important exception for companies that have already received a notice to deliver a Company Tax Return. If HMRC has issued such a notice, the company may still have to submit a return for the relevant period, even if the company considers itself dormant. HMRC states that failure to file a required return can result in penalties. So don't ignore an HMRC notice simply because your company has no revenue.

What If My Company Has Expenses but No Revenue?

This is where the answer becomes more nuanced. A startup can spend money before it generates its first sale. For example, a company might spend £5,000 on:

• Website development
• Branding
• Professional services
• Software
• Market research
• Business equipment
• Advertising preparation

while generating £0 in revenue. Does that automatically mean the company is dormant? No. HMRC distinguishes between genuine pre-trading activity and business activity. Certain preliminary activities, such as preparing a business plan, negotiating contracts or incurring some preliminary expenditure while deciding whether to start a business, do not necessarily mean trading has begun. But once the company has actually started carrying on business, the Corporation Tax position needs to be assessed accordingly.

Example: Startup preparing to launch

A founder incorporates a UK company and spends £1,500 researching suppliers and preparing a business plan. The company has made no sales. Those facts alone do not necessarily mean the company has started trading. By contrast, if the company begins supplying customers and issuing invoices, it is no longer simply a company waiting to launch. The difference is what the company is actually doing, not just whether it has generated revenue.

What If My Company Is Trading but Has Made No Profit?

This is different from being dormant. Suppose a company has:

• £30,000 revenue
• £30,000 allowable expenses
• £0 taxable profit

The company may have Corporation Tax obligations even though its final Corporation Tax liability could be nil. Similarly, a company may make a trading loss. A loss-making company should not automatically be treated as dormant. It may still be an active trading company that needs to prepare accounts and file the relevant tax return.

There can also be potential tax consequences associated with losses, including the possibility of carrying qualifying losses forward or using them in other ways permitted by the Corporation Tax rules. This is one reason it is important not to use “no revenue” as a substitute for proper accounting analysis.

What If My Company Has £0 Revenue but Receives Interest?

Interest and other income can change the position. HMRC specifically identifies receiving income as a factor relevant to whether a company is active for Corporation Tax purposes. For example, imagine your company has never sold anything but holds money that generates £500 of interest. The company has:

• £0 sales revenue
• £500 interest income

It would be misleading to describe the company as having absolutely no income simply because it has no sales. The interest may need to be considered for Corporation Tax purposes. The same principle can apply to other sources of income and certain gains.

What If the Company Has No Revenue but Owns an Asset?

Asset ownership can also matter. A company could have no sales revenue while holding:

• Property
• Shares or investments
• Intellectual property
• Other valuable assets

Whether the company is dormant for Corporation Tax depends on the circumstances. HMRC's guidance recognises specific circumstances involving companies holding assets, so founders should not assume that an asset-holding company is automatically equivalent to an unused company. If an asset is later sold for a taxable gain, Corporation Tax may become relevant even though the company never generated ordinary sales revenue.

How Much Is Corporation Tax?

For Corporation Tax years beginning in 2026, the UK rates are generally:

• 19% for companies with profits below £50,000
• 25% for companies with profits above £250,000
• Marginal Relief applies to qualifying companies with profits between £50,000 and £250,000.

These figures concern profits, not revenue. So if your company has £0 taxable profit, applying a Corporation Tax rate to £0 does not create a Corporation Tax bill. However, the calculation of taxable profit can be more complicated than simply subtracting expenses from sales. Accounting adjustments, capital expenditure, losses, chargeable gains, associated companies and other tax rules can affect the calculation.

Do I Still Need to File Accounts If There Is No Corporation Tax?

Yes. This is one of the most important distinctions for company owners. No Corporation Tax bill does not mean no company filing obligations. Companies House has its own requirements. A UK limited company generally has to file annual accounts even when it is dormant. If the company qualifies as dormant for Companies House purposes, it may be able to file simplified dormant accounts.

The company must also continue to file its confirmation statement. Therefore, you could have a company that owes £0 Corporation Tax while still having annual Companies House filings to complete.

Corporation Tax vs Companies House: The Key Difference

The easiest way to understand the issue is to separate the two systems.

HMRC itself notes that “dormant” has different meanings for Corporation Tax and Companies House purposes. This distinction prevents a common mistake: assuming that telling HMRC your company is dormant eliminates your Companies House responsibilities. It does not.

What If HMRC Has Already Asked Me to File a Tax Return?

If HMRC has sent your company a notice to deliver a Company Tax Return, pay attention to the notice. A company may have no revenue and still be required to file a return for a particular accounting period. If the company has not told HMRC it is dormant, HMRC's guidance states that it may still be required to submit a Corporation Tax return, and failure to do so can result in penalties.

The practical rule is: Never ignore an HMRC filing notice simply because you believe your tax bill should be zero. A tax return and a tax payment are two different things.

What Happens When the Company Starts Making Revenue?

Once your company begins trading, its tax position can change. If it was previously dormant for Corporation Tax, you must tell HMRC when it starts trading again. This sets the company up for Corporation Tax obligations. You may then need to:

1. Register for Corporation Tax or reactivate the relevant HMRC service.
2. Keep complete accounting records.
3. Prepare statutory accounts.
4. File accounts with Companies House.
5. File Company Tax Returns with HMRC.
6. Pay Corporation Tax where due.
7. Consider VAT and PAYE requirements where applicable.

HMRC explains that a company's Corporation Tax accounting period begins when it restarts business activities, which can mean its Corporation Tax period does not initially align perfectly with its Companies House accounting period.

A Simple Decision Framework

If your company currently has no revenue, ask these five questions:

1. Has the company actually started trading?

If no, it may be dormant for Corporation Tax. If yes, it is potentially active even if sales are currently £0.

2. Does the company receive any other income?

Consider interest, investments and other sources of income.

3. Has the company incurred expenses?

Determine whether these are genuine pre-trading costs or expenses incurred during an active business.

4. Has HMRC issued a notice to deliver a Company Tax Return?

If yes, deal with the notice even if you expect the tax calculation to be nil.

5. Are Companies House filings up to date?

Check both annual accounts and the confirmation statement. This five-question review is often more useful than simply asking whether the company has generated revenue.

What Should I Do If My Company Has Never Made Money?

If your company has never generated revenue, start with the facts rather than assuming it is automatically dormant.

If the company never started trading

Check whether it qualifies as dormant for Corporation Tax and notify HMRC where appropriate.

If the company traded but made no profit

Treat it as an active company and determine its actual Corporation Tax and filing requirements.

If the company has other income

Review the income for Corporation Tax purposes.

If the company has losses

Make sure the losses are properly recorded and consider whether they may have future tax value.

If the company is no longer needed

You may be able to keep it dormant or consider closing it. A company does not automatically close simply because it stops generating revenue. HMRC confirms that a company can remain dormant rather than being closed, provided it is not carrying on business, trading or receiving income. It must still meet its Companies House filing obligations.

Frequently Asked Questions

Do I pay Corporation Tax if my company has £0 revenue?

Not necessarily. If the company has no taxable profits or other taxable amounts, there may be no Corporation Tax to pay. However, having £0 revenue does not automatically establish that the company is dormant.

Is a company with no revenue automatically dormant?

No. A company may have no sales but still be active because it is trading, carrying on business or receiving other income. HMRC uses specific criteria when determining Corporation Tax dormancy.

Does a dormant company pay Corporation Tax?

A company that is genuinely dormant for Corporation Tax generally does not have Corporation Tax to pay. Once HMRC has been notified of its dormant status, it generally does not need to file another Company Tax Return unless HMRC asks for one or the company starts trading again.

Do I need to file a tax return if my Corporation Tax bill is £0?

Potentially, yes. If HMRC has issued a notice to deliver a Company Tax Return, the company generally needs to file it even if the resulting Corporation Tax liability is nil.

What if my company has expenses but no revenue?

Expenses do not automatically make a company dormant or active. Some pre-trading activities and expenditure can occur before trading begins, but once the company actually carries on business, its tax position needs to be assessed.

Does a company with no revenue still file Companies House accounts?

Yes. Limited companies generally have to file annual accounts with Companies House, including dormant companies. Dormant companies that qualify can generally use simplified dormant accounts.

What if my company has no revenue but earns bank interest?

Interest is income and can affect the company's Corporation Tax status. A company should not be treated as having no income simply because it has no sales.

What happens when a dormant company starts trading?

You must tell HMRC that the company has restarted trading and then meet the relevant Corporation Tax, accounts and return requirements.

Conclusion

A UK company with no revenue does not automatically have to pay Corporation Tax, but it does not automatically have no tax obligations either. The critical distinction is between zero revenue, zero profit and genuine dormancy. If your company has never started trading, has no other income and meets HMRC's conditions for dormancy, it may not have Corporation Tax to pay. After notifying HMRC that the company is dormant, you generally will not need to file another Company Tax Return unless HMRC requests one or the company becomes active again.

If the company is trading but simply has no revenue, or if it receives interest, investment income or other taxable amounts, the position can be different. And regardless of the Corporation Tax bill, Companies House obligations continue. A dormant company generally still needs to file annual accounts and a confirmation statement. For founders and global entrepreneurs, the practical lesson is straightforward: do not use revenue alone to determine your company's tax status. Look at what the company is actually doing, check its HMRC status, keep proper records and deal with every filing notice you receive.

For international founders managing a UK company remotely, IncorpUK provides a broader company formation and management platform that can sit alongside the accounting and tax professionals responsible for formal financial compliance. Ultimately, a company making no sales may owe no Corporation Tax, but you should establish why before assuming there is nothing to report.