10 min read
Having your company struck off the register often comes as a surprise. Many directors only realise there is a problem when a bank account is frozen or a client flags that the company no longer appears on the register.
In most cases, strike off happens because filings have been missed or official notices have gone unanswered. As Companies House tightens its approach to compliance, this is becoming increasingly common, even for genuine trading businesses
Administrative restoration is often the fastest and most cost-effective way to put things right. In this guide, we explain what administrative restoration is, when it applies, the risks of leaving a dissolved company unresolved, and why taking advice from an accountant can save time, money and stress.
What is administrative restoration?
Administrative restoration is the process used to reverse a strike off that was carried out by Companies House.
It is relevant where Companies House removed the company because it appeared inactive or non-compliant, often due to overdue accounts or confirmation statements. It does not apply where the company was closed voluntarily or struck off through court proceedings.
Once restoration is completed, the company is treated as though the strike off never happened. This allows the business to trade, regain control of its finances and deal properly with any assets or obligations.
Common reasons Companies House strikes companies off
In most cases, Companies House will strike off a company because it appears to be inactive or non-compliant. Common triggers include:
- Failure to file annual accounts
- Failure to submit confirmation statements
- Returned mail or no response to official notices
- Director details not kept up to date
- Identity verification requirements not completed
With the introduction of ID verification for directors and persons with significant control, many genuine trading companies are now at risk of being struck off simply because the process was overlooked or misunderstood.
Director ID verification and future strike-off risk
A newer area directors need to be aware of is mandatory identity verification.
Under recent Companies House reforms, directors and people with significant control are required to verify their identity. This is part of a wider effort to improve transparency and reduce misuse of UK companies.
Importantly, failure to complete ID verification does not currently trigger immediate strike off; Directors have a transitional period, expected to be around 12 months, to comply.
However, Companies House has made it clear that persistent non-compliance will eventually lead to enforcement action, which may include financial penalties, restrictions on filings and ultimately strike off.
This means ID verification is not an urgent risk today, but it is a clear future risk. Directors who ignore it or leave it too late may find their company facing avoidable problems further down the line.
This is an area many directors are still unaware of, and it is likely to become a much bigger issue later this year and into next.
Why administrative restoration matters
When a company is dissolved, it effectively stops existing. The consequences of this can be far more serious than many directors expect.
Any funds left in the company bank account are frozen and may eventually pass to the Crown as bona vacantia. Assets such as property, vehicles or intellectual property can also be lost. The company cannot trade, raise invoices or enforce contracts.
Outstanding liabilities, including tax matters, do not disappear. These issues can still arise once the company is restored, particularly in discussions with HMRC.
For many businesses, administrative restoration is not optional. It is a crucial step in protecting assets, recovering funds and dealing with the company’s affairs properly.
Who can apply for administrative restoration?
Administrative restoration is available if all of the following apply:
- The company was struck off by Companies House.
- The company was trading or carrying on business at the time of the strike off.
- The application is made within six years of the dissolution date.
- The application must be made by someone who was previously involved with the company, usually a former director or shareholder.
Where the criteria is met, the company can normally be restored through Companies House rather than the courts. This keeps both the cost and the timescale far more manageable.
The administrative restoration process explained
Although it is often described as a simpler route, there are still a number of steps that need to be handled carefully.
The starting point is dealing with anything that was left outstanding, including overdue accounts and confirmation statements. This typically includes overdue accounts and confirmation statements. Companies House will not restore a company unless these are prepared accurately and submitted in full.
Second, any penalties for late filing must be paid. This can include multiple years of late filing penalties.
Where company bank accounts were frozen at the point of strike off, retrieving those funds usually requires submitting a Bona Vacantia claim to the Treasury Solicitor. This is a necessary step before funds can be released back to the restored company.
Third, the company must be brought up to date with HMRC. This often involves submitting overdue corporation tax returns, PAYE filings or VAT returns and settling or agreeing payment of any outstanding tax.
Finally, an application for administrative restoration is submitted to Companies House along with the relevant fee. There are also statutory administration fees to factor in. Companies House currently charges a restoration fee of £468, and the Treasury Solicitor charges a £64 fee when dealing with bona vacantia claims relating to company funds or assets.
Only once all conditions are satisfied will Companies House restore the company to the register.
Unintentional strike-offs and hidden risks
One of the biggest risks we see is directors assuming that a struck-off company is no longer an issue. In reality, unresolved dissolved companies often cause problems years later.
A common scenario involves a director discovering that funds were left in a company bank account after strike off. Recovering those funds without restoration is extremely difficult.
Another involves selling a business asset or property only to find the company no longer exists. Restoration becomes unavoidable and urgent.
With increased enforcement and identity verification, these situations are becoming more common. Acting early makes restoration far easier and far less costly.
How we help with administrative restorations
At Golding, we provide end-to-end support with administrative restorations.
We assess whether administrative restoration is the correct route and confirm eligibility. We prepare and file all outstanding accounts and confirmation statements. We liaise with HMRC to resolve tax matters and manage communications throughout the process. We also advise on what to do after restoration, whether that means resuming trading or closing the company properly.
Our role is not just to restore the company but to put you back in control with clear advice and no loose ends. Our fixed fee for handling an administrative restoration is £450 plus VAT. This covers the restoration process itself. Any overdue accounts or additional compliance work required as part of the restoration will be quoted for separately, once we have reviewed the company’s position.
Final thoughts
Administrative restoration exists to fix genuine oversights, not punish honest mistakes. If your company has been struck off, delaying action rarely helps. With tighter compliance checks now in place and ID verification requirements on the horizon, it is becoming easier for directors to fall into difficulty without realising it. If Companies House has struck off your company and you are unsure where to turn next, a quick conversation with our accountant can really help clarify your options.
