First year in business checklist
Everything to do in your first 12 months: tax registrations, accounts setup, insurance, and the deadlines you must meet.
RR AccountantsLast updated: 2025-01-155 min read
Month 1
- Open a separate business bank account
- Choose and set up bookkeeping software (MTD-compatible)
- Register for Corporation Tax (limited company) within 3 months of trading
- Register for Self Assessment if you're a sole trader (deadline: 5 October following start of trading)
- Get business insurance: professional indemnity, public liability, employer's liability if you employ
Months 1-3
- Set up systems for invoicing customers and recording expenses
- Start tracking rolling 12-month turnover (for VAT threshold monitoring)
- If employing yourself or staff: register as an employer with HMRC for PAYE
- Set up auto-enrolment pension if you have employees
Months 3-6
- Review monthly P&L and cash position with your accountant or yourself
- If you're approaching £90,000 turnover — prepare for VAT registration
- Maintain receipts and records — don't let it pile up
- Reconcile bank accounts monthly
Months 6-12
- Plan for first tax payment well ahead of deadlines
- Sole traders: budget for first Self Assessment due 31 January (plus payment on account if profitable)
- Limited companies: budget for first Corporation Tax payment 9 months and 1 day after period end
- Review insurances and registrations
Year-end housekeeping
- Limited company: prepare statutory accounts (first set due 21 months from incorporation)
- Both: reconcile bank accounts, review debtors and creditors
- Issue P60s to employees (if applicable) by 31 May
- Submit confirmation statement at Companies House (limited company)
- Plan year 2 — what worked, what didn't, what to change
Records to keep from day one
- Sales invoices and customer payments
- Purchase invoices and supplier payments
- Bank statements (business and any personal cards used for business)
- Mileage logs if you claim travel
- Receipts for every expense claimed
- Contracts with suppliers, customers, employees
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