Starting a Business Hub
Setting up a business in the UK. Sole trader vs limited company, registrations, and the tax basics you need to know from day one.
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Business structures
Sole trader vs limited company. Which is right for you?
2 articles
Company formation
How to form a UK limited company and what to do straight after.
1 articles
Tax registrations
Self Assessment, VAT, PAYE — what you need to register for and when.
2 articles
First year
Everything to do in your first year of business to stay compliant.
1 articles
Starting properly: structure, registrations, habits
Three decisions shape a business's first years, in this order. Structure: sole trader, partnership, or limited company — the highest-leverage choice, and the costliest to unwind. Registrations: Self Assessment or company activation, PAYE before the first payday, VAT when the rolling £90,000 test approaches. Habits: monthly reconciliation, tax ring-fenced from every receipt, and a written deadline calendar.
Each has its own guide in this hub, plus a first-year walkthrough that assembles the dates and traps into one picture.
The order of operations matters
Structure comes before registration, because the structure determines what you register for. Registrations come before trading milestones — payroll before the first payday, VAT watched from the first invoice. And the record-keeping habit starts with transaction one, because bookkeeping begun in month one is a subscription, and begun in month eleven is archaeology.
This sequence is what we run for every new-business client: the structure conversation first (a 20-minute call), then registrations in the right order, then Compliance Vault™ carrying the records and deadlines from day one.
Frequently asked questions
Sole trader or limited company — how do I choose?
By numbers and facts, not folklore: expected profits, what you draw versus retain, liability risk, and what your customers require. At modest spend-it-all profits, sole trader simplicity usually wins; retained profits and real risk build the company case. The structures guide sets out the comparison.
What do I need to register for when I start?
Sole traders: Self Assessment by 5 October after your first tax year. Companies: HMRC activation within three months of trading, PAYE before any salary, and VAT on the rolling £90,000 test. The registrations guide sequences all of it.
How much tax should I put aside?
A working rule of 25–30% of profit for sole traders — remembering the first January stacks payments on account on top — and for companies, the Corporation Tax accruing plus personal tax on drawings. Ring-fence it monthly from day one; the first-year guide explains the calendar.
Need help with starting a business?
Book a call and we will explain the next steps clearly.