Can a company with a Bounce Back Loan be dormant?

By DormantFile · Updated 1 June 2026

Sometimes. Having a Bounce Back Loan on the books does not automatically make a company non-dormant — it depends entirely on how the loan is being handled.

A company is dormant only if it has had no significant accounting transactions in the period.

• The loan just sits there, and repayments are made from your personal funds (the company's own bank account never moves) → no company transactions → the company can stay dormant and file dormant accounts.
• The company repays the loan, or interest is charged, through its own bank account → those are significant accounting transactions → the company is not dormant. It files FRS 105 micro-entity accounts instead, showing the loan on a short balance sheet.

Either way, the company still has to file accounts every year while the loan is outstanding, and a nil CT600 if it is registered for Corporation Tax — repaying a loan creates no profit, so there is no tax to pay.

For the full picture, see filing accounts for a non-trading company with a Bounce Back Loan, or a Bounce Back Loan and a dormant company.