Within the first 3 months
- Open a business bank account in the company's name (Tide, Starling, Wise are popular).
- Register for Corporation Tax with HMRC (you have 3 months from starting to trade).
- Register for PAYE if paying yourself a salary or hiring anyone.
- Decide your year-end (Companies House defaults to month-end after the anniversary; you can shorten to align with personal tax year).
- Get bookkeeping software set up - FreeAgent, Xero, QuickBooks. From April 2026 MTD will require digital records and quarterly submissions for VAT-registered companies.
- Engage an accountant if you haven't already. They'll usually back-date the engagement to incorporation.
Throughout year 1
- Run monthly payroll with RTI submissions to HMRC (your accountant handles this).
- Track income and expenses in your bookkeeping software. Keep receipts.
- Watch the VAT threshold (£90K rolling 12-month turnover). Register within 30 days of crossing it.
- File a Confirmation Statement on the anniversary of incorporation (£34 fee).
After year-end
- Annual accounts: due 21 months after incorporation for the first year (9 months after year-end for subsequent years).
- CT600 to HMRC: due 12 months after year-end.
- Corporation Tax payment: due 9 months and 1 day after year-end.
- Director Self Assessment: due 31 January following the tax year if you've taken dividends or other income.
First-year accounts are usually a longer accounting period than 12 months (depending on incorporation date and chosen year-end). This trips up new directors - the CT calculation is split if the period exceeds 12 months. Specialist advice is worth it for the first set of accounts.
FAQ
Frequently asked questions
When does my first year end?+
By default, Companies House sets your first year-end to the last day of the month after the anniversary of incorporation. So a company incorporated 15 March 2025 would have a first year-end of 31 March 2026. You can change this via form AA01.
Do I need an accountant from day one?+
Not strictly required, but worth it. New directors typically save more than the accountant's fee through correctly structured salary/dividends, claimed expenses, and avoided penalties. Most specialist firms charge £75-£150/month from incorporation.
What if my company hasn't traded yet?+
You still file - dormant company accounts are simpler (effectively a balance sheet showing nil activity) and a Confirmation Statement is still required. £25-£40/month for dormant compliance is typical.
Match with a Ltd company accountant
Tell us about your situation. We'll match you with the right specialist.
No fees, no obligation. We come back within 1 working day.