When do I need to tell HMRC I have started a business?

As a sole trader, register for Self Assessment by 5 October after the end of the tax year in which you started. If you start trading between 6 April 2026 and 5 April 2027, the deadline is 5 October 2027. A limited company must tell HMRC it is liable for Corporation Tax within three months of starting to trade.

Should I start as a sole trader or a limited company?

It depends on your expected profits, the risks of your work, how you want to take money out and how much admin you are happy with. Sole trader is simpler and cheaper to run. A company offers limited liability and can be more tax efficient as profits grow. We compare both for you, with real numbers, before you decide.

Can I start as a sole trader and switch to a limited company later?

Yes. Many people do once profits grow. Switching means forming a company, transferring the business and closing your sole trade for tax. We can manage the move and the timing for you.

Do I need to register for VAT?

You must register when your taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to within the next 30 days. You can register voluntarily below that, which can help if your customers are VAT-registered businesses.

What bookkeeping software should I use?

We work with Xero, QuickBooks, FreeAgent and Sage, and with spreadsheets for very simple businesses. If you are a sole trader heading for Making Tax Digital, we will help you choose software that is compatible from the start.

How much does a start-up accountant cost?

Sole trader tax returns start from £150 a year. Limited company packages start from £79 a month. Company formation is a fixed £200. All our prices include VAT and are agreed in writing before we start.

Can I speak to my accountant directly?

Yes. You deal with a qualified accountant who knows your business, by phone, email or WhatsApp, and you can start with a free consultation.

Can you help with Companies House identity verification?

Yes. Since 18 November 2025, every new director and person with significant control must verify their identity before a company can be formed. As a Companies House Authorised Corporate Service Provider, we can help you through this when we form your company.

Start-Up Business Accountants | Fixed Fees from £79

Start-up packages

Simple prices for new businesses

Fixed fees agreed in writing before we start. All prices include VAT.

Sole trader

For freelancers, tradespeople and new self-employed businesses.

£150

per year, from · incl. VAT

Self Assessment registration help
Annual tax return
Expense and allowance review
Making Tax Digital readiness check
Deadline reminders

Get started

Sole trader or limited company?

Choosing your business structure is the first big decision, and it affects how much tax you pay, the paperwork you must keep and your personal risk. Here is how the two most common options compare for the 2026/27 tax year.

Starting as a sole trader

This is the simplest way to start. You and the business are legally the same, so you keep all the profit but you are also personally responsible for any debts. You pay Income Tax on your profits at 20%, 40% or 45% after the £12,570 personal allowance, plus Class 4 National Insurance of 6% on profits between £12,570 and £50,270 and 2% above that. Class 2 National Insurance is no longer compulsory.

You must register for Self Assessment by 5 October after the end of the tax year you started in. If your turnover is £1,000 or less, the trading allowance means you may not need to report it at all. Once your income from self-employment and property goes over £50,000, Making Tax Digital for Income Tax applies, falling to £30,000 from April 2027 and £20,000 from April 2028.

Setting up a limited company

A company is a separate legal entity, so your personal assets are usually protected. The company pays Corporation Tax at 19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief in between. Most directors take a small salary and the rest as dividends. Above the £500 dividend allowance, dividends are taxed at 10.75%, 35.75% or 39.35% from April 2026.

There is more admin: annual accounts for Companies House, a Corporation Tax return, a confirmation statement every year and payroll if you pay a salary. Since 18 November 2025, every director and person with significant control must also verify their identity with Companies House.

Other things to plan for

VAT: registration is compulsory once taxable turnover passes £90,000 in a rolling 12 months.
Employing staff: register as an employer before your first payday. Employer National Insurance is 15% on earnings above £5,000 a year, but the Employment Allowance can reduce your bill by up to £10,500. You will also need a workplace pension.
Records: keep every receipt and invoice from day one. Costs you incurred in the seven years before you started trading may also be claimable.

Not sure which route is right? Book a free consultation and we will run the numbers for both.