Your first steps
- Choose your structure. Sole trader for simplicity, or a limited company for liability protection and potential tax efficiency.
- Register with HMRC. Register for Self Assessment as a sole trader, or for corporation tax if you form a company.
- Separate your money. Open a business bank account and keep personal spending out of it.
- Set up records. Simple bookkeeping from day one, digital and ready for Making Tax Digital.
- Plan for tax. Set money aside as you earn, and know when VAT and payroll will apply as you grow.
Starting out and want it set up right?
The early choices shape your tax for years. TaxTune helps you pick the right structure, registers you, and sets up records and pay so you start on solid ground.
Let us set your business up properly
We advise on structure, handle the registrations, and set up your records, bank and tax planning. Fixed fee, and a clear start.
Frequently asked questions
What do I need to do when starting a business?
Choose between sole trader and limited company, register with HMRC, open a business bank account, set up simple digital records, and plan for tax, VAT and payroll as you grow.
Do I have to register with HMRC straight away?
You register for Self Assessment by 5 October following the tax year you start, or for corporation tax within 3 months of a company starting to trade. Registering promptly avoids problems.
Should I be a sole trader or a limited company?
Sole trader is simplest and most private. A company offers limited liability and potential tax efficiency but more admin. The right choice depends on profit, risk and plans.
When will I need to register for VAT?
Once your taxable turnover passes £90,000 in a rolling 12 month period. Many new businesses are below this at first but should watch it as they grow.
How much tax should I set aside when starting out?
A common guide is around 25% to 30% of profit for the self employed, kept in a separate account. An accountant can give you a precise figure for your situation.