Region: United Kingdom
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United Kingdom · Tax, accounting & company complianceCompanies House keeps the register. HMRC collects the tax. We keep both up to date for your UK business.

We work with UK sole traders, freelancers and limited companies, and with founders abroad setting up in the UK, on incorporation, HMRC registrations, VAT, Making Tax Digital and annual filings.

Book a consultation8 services in the UK

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See the key dates below.

Tax year
6 April – 5 April (individuals)
Currency
Pound sterling (GBP)
Main authorities
CH · HMRC · TPR
Services
8 covered on this site
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Tax year

6 April – 5 April (individuals)

The system in brief

How the UK taxes a business.

Two bodies matter most for a UK business. Companies House keeps the public register of companies: who runs them, who controls them and what their annual accounts say. HMRC collects the tax: Corporation Tax, Income Tax through Self Assessment and PAYE, National Insurance and VAT.

They run on different calendars. Individuals, sole traders and partners work to the tax year from 6 April to 5 April. A limited company works to its own accounting period, and its Companies House and HMRC deadlines count from its year end.

Most of the system is now digital by default. VAT returns go through Making Tax Digital software, and since 6 April 2026 sole traders and landlords with qualifying income over £50,000 keep digital records and send quarterly updates as well. Companies House, meanwhile, now verifies the identity of every new director and person with significant control.

Self Assessment, PAYE and Making Tax Digital for Income Tax follow the tax year from 6 April to 5 April. Companies pay Corporation Tax on their own accounting periods of up to 12 months, usually matching the financial year end they choose. Corporation Tax rates are set for financial years running 1 April to 31 March.

Who you’ll deal with

The authorities, and what each one wants.

Knowing which body handles what saves a great deal of time. These are the ones most UK businesses meet.

  • CH

    Companies House

    Registers companies and LLPs, verifies the identity of directors and people with significant control, and publishes the accounts and confirmation statements you file.

  • HMRC

    HM Revenue & Customs

    Collects Corporation Tax, Income Tax (through Self Assessment and PAYE), National Insurance and VAT, and runs Making Tax Digital.

  • TPR

    The Pensions Regulator

    Oversees workplace pension auto-enrolment, whose duties start from the day your first member of staff starts work.

How it works

What a business owner in the UK needs to understand.

  1. 01

    Incorporation is not tax registration

    Companies House creates the company and HMRC then posts a Corporation Tax UTR to the registered office. The company still has to add Corporation Tax within 3 months of starting business activity, and PAYE and VAT are separate registrations with their own triggers.

  2. 02

    Corporation Tax follows the company’s year

    At the time of writing, profits up to £50,000 are taxed at 19%, profits over £250,000 at 25%, with marginal relief in between. Tax is usually due 9 months and 1 day after the accounting period ends, and the CT600 return 12 months after.

  3. 03

    VAT is triggered by turnover, not profit

    Registration is compulsory once VAT-taxable turnover for any rolling 12 months goes over £90,000 (the threshold at the time of writing), or is expected to in the next 30 days alone. Businesses not established in the UK have no threshold. Registering voluntarily below it is allowed.

  4. 04

    Making Tax Digital is now the norm

    All VAT-registered businesses file through MTD software. MTD for Income Tax began on 6 April 2026 for sole traders and landlords with qualifying income over £50,000, and at the time of writing falls to £30,000 from April 2027 and £20,000 from April 2028. Partnerships join later.

  5. 05

    Companies House now checks identities

    Under the Economic Crime and Corporate Transparency Act 2023, directors and people with significant control must verify their identity. It has been compulsory for new appointments since 18 November 2025, and existing directors confirm it with their next confirmation statement.

  6. 06

    Public filings come round every year

    Every company files a confirmation statement at least once every 12 months and annual accounts, both on the public register. Accounts filing is due to become software-only from 1 April 2028, with small companies also filing a profit and loss account (at the time of writing).

United Kingdom services

What we handle in the UK.

Business & Incorporation

Tax

Accounting

Compare with the same services in other countries

United Kingdom

Companies House keeps the register. HMRC collects the tax. Both expect you on time.

Year-one roadmap

The first year of a UK limited company

Most new companies meet the same filings in roughly the same order. Some happen at Companies House, some at HMRC, and a few only apply once you pay staff or pass the VAT threshold.

This assumes a straightforward first year. Changing the accounting reference date, trading from abroad or registering for VAT early all change the sequence, so we map it for your company at the start.

Talk it through with us

  1. Incorporate the company

    File online or on form IN01 with the name, a UK registered office, a registered email address, SIC codes, share capital, articles and a lawful purpose statement. Directors provide their Companies House personal codes; PSCs verify within their 14-day window.

    Companies House · £100 online at the time of writing

  2. Register for Corporation Tax

    HMRC posts the company’s 10-digit UTR to the registered office. Corporation Tax must be added within 3 months of starting business activity, which includes trading, advertising, buying stock or employing someone.

    HMRC · Corporation Tax

  3. Open a business bank account

    Company money needs to stay separate from yours. Banks set their own identity and residence checks, and non-resident directors should expect the process to take longer.

    Your bank or e-money provider

  4. Set up PAYE

    Register as an employer before paying any salary, including to a director. You can’t register more than 2 months ahead. Pay is then reported to HMRC in real time on or before each payday.

    HMRC · PAYE / RTI

  5. Register for VAT

    Compulsory once rolling 12-month taxable turnover passes the threshold (£90,000 at the time of writing) or is expected to within 30 days. Voluntary registration can come earlier. Companies not established in the UK have no threshold.

    HMRC · VAT

  6. Keep digital books

    Bookkeeping in software from day one feeds the VAT returns, the accounts and the Corporation Tax computation. VAT returns must go through Making Tax Digital compatible software.

    MTD for VAT

  7. File the first confirmation statement

    Due at least once every 12 months, within 14 days after the review date. It confirms officers, shareholders, PSCs, SIC codes and addresses, and can’t be filed until every director is verified.

    Companies House · £50 online at the time of writing

  8. File the first accounts

    A new company’s first accounts are usually due 21 months after incorporation. After that, accounts are due 9 months after each year end.

    Companies House · annual accounts

  9. Pay Corporation Tax and file the CT600

    Tax is usually due 9 months and 1 day after the accounting period ends; the CT600, with iXBRL accounts and computations, 12 months after. A first period longer than 12 months is split into two tax periods, each with its own return.

    HMRC · CT600

Choosing a structure

Sole trader, partnership or limited company: how the main UK structures compare

ComparedSole traderPartnership / LLPPrivate limited company
RegistrationSelf Assessment with HMRCPartnership: HMRC only. LLP: Companies House, then HMRCCompanies House, then Corporation Tax with HMRC
LiabilityUnlimited, personalPartnership: unlimited. LLP: generally limited to members’ capitalGenerally limited to share capital (personal guarantees aside)
Tax on profitsIncome Tax and National Insurance on all profitsEach partner or member taxed on their shareCorporation Tax; owners taxed on salary and dividends
Main returnsSA100, plus MTD quarterly updates if in scopeSA800 plus each partner’s SA100CT600, annual accounts, confirmation statement
Public filingNonePartnership: none. LLP: accounts and confirmation statementAccounts, officers, shareholders and PSCs
Typical fitFreelancers and small traders starting outProfessional practices and joint ownersGrowing businesses, contractors, anyone raising investment
The better structure depends on your profits, how much you draw, your clients and your plans. We model the numbers before recommending a change, and confirm current rates when we do.

Common situations

What’s involved, case by case.

Illustrative composites of situations we’re commonly asked about. They aren’t client stories, and your own circumstances may change what applies.

Scenario 01

A freelance developer moving from sole trader to limited company

A self-employed developer has been filing Self Assessment for several years. Profits have grown, a new client wants to contract with a company, and they want to know whether incorporating actually saves tax.

What’s involved

  • Comparing take-home pay as a sole trader against salary and dividends through a company
  • Incorporation, a business bank account and Corporation Tax registration
  • A PAYE scheme for the director’s salary
  • Checking whether the off-payroll working rules (IR35) affect the new contract
  • Closing the sole trade on the next Self Assessment return

How we help

We model both structures on the real figures first. If a company makes sense, we form it, register it with HMRC, set up payroll and bookkeeping, and handle the final sole trader return.

Scenario 02

A founder in Lahore or Texas forming a UK company to sell to UK customers

A founder living outside the UK wants a UK limited company to sign up with UK platforms and payment providers and invoice UK customers. They have no UK address and have never dealt with HMRC.

What’s involved

  • A UK registered office and identity verification completed from abroad
  • Corporation Tax registration, since a UK-incorporated company is UK tax resident
  • Whether the company counts as UK-established for VAT, which decides whether any threshold applies
  • Bank or e-money account onboarding for a non-resident director
  • Home-country reporting of the UK company, which needs its own advice

How we help

We form the company, guide each person through verification, register it with HMRC and review the VAT position before the first sale. We flag where US or Pakistani rules are likely to apply as well.

Scenario 03

An online shop about to cross the VAT threshold

A UK brand selling through its own online store and a marketplace has seen sales jump over a peak season. Its rolling 12-month turnover is close to the threshold and nobody has been checking it monthly.

What’s involved

  • A month-by-month rolling turnover test from the sales records
  • Registering within 30 days of the month the threshold is passed
  • Deciding whether to raise prices or absorb VAT on consumer sales
  • Connecting the store and bookkeeping software for Making Tax Digital
  • Checking whether a VAT scheme such as Flat Rate helps or hurts

How we help

We run the test, fix the effective date, register the business and set up VAT codes and MTD software so the first quarterly return comes straight from the books.

Scenario 04

A consultancy with late accounts and an overdue confirmation statement

A small consultancy company has missed its Companies House accounts deadline, its confirmation statement is overdue, and HMRC has started sending penalty notices for an unfiled CT600.

What’s involved

  • Rebuilding the books from bank statements
  • Preparing and filing the overdue accounts and CT600
  • Getting directors verified so the confirmation statement can be filed
  • Late filing penalties at Companies House and HMRC, and whether any can be appealed
  • Keeping the company off the path to being struck off the register

How we help

We bring the filings up to date in order of risk, talk to HMRC and Companies House where needed, and set up a calendar so it doesn’t happen again.

Key dates

Deadlines in the UK, month by month.

Company dates count from your own year end and VAT periods, so we set them out as a calendar for your business. HMRC rarely moves its deadlines, and Companies House only extends an accounts deadline on application made before it passes, for reasons outside your control.

Deadlines that follow your own year end or filing period

  • Period end + 1m 7dVAT return and paymentVAT-registered businesses (most file quarterly)

    Returns are filed through MTD software and payment must reach HMRC by the same date, usually one calendar month and 7 days after the VAT period ends.

  • Year end + 9mAnnual accounts to Companies HousePrivate limited companies and LLPs

    Accounts are due 9 months after the financial year end. A new company’s first accounts are usually due 21 months after incorporation.

  • Year end + 9m 1dCorporation Tax paymentLimited companies (other than large companies)

    Corporation Tax for the accounting period is usually payable 9 months and 1 day after it ends. Large companies pay in quarterly instalments instead.

  • Year end + 12mCompany Tax Return (CT600)Limited companies

    The CT600, with iXBRL accounts and computations, is due 12 months after the end of the accounting period.

  1. January

    1 deadline
    • 31Self Assessment online deadlineUnited Kingdom · Sole traders, partners, landlords and others in Self Assessment

      Online return for the tax year that ended the previous 5 April, balancing payment for that year and the first payment on account for the current year.

  2. February

    1 deadline
    • 7MTD for Income Tax quarterly updatesUnited Kingdom · Sole traders and landlords within Making Tax Digital for Income Tax

      Quarterly updates of income and expenses sent through compatible software, with the year-end return due by 31 January.

  3. April

    1 deadline
    • 5Tax year endsUnited Kingdom · Individuals, sole traders, partners and employers

      The last day of the UK tax year for Income Tax, National Insurance and PAYE. The new year starts on 6 April.

  4. May

    1 deadline
    • 7MTD for Income Tax quarterly updatesUnited Kingdom · Sole traders and landlords within Making Tax Digital for Income Tax

      Quarterly updates of income and expenses sent through compatible software, with the year-end return due by 31 January.

  5. July

    1 deadline
    • 31Second payment on accountUnited Kingdom · Self Assessment taxpayers with payments on account

      The second advance payment towards the current year’s Self Assessment bill, usually half of the previous year’s liability.

  6. August

    1 deadline
    • 7MTD for Income Tax quarterly updatesUnited Kingdom · Sole traders and landlords within Making Tax Digital for Income Tax

      Quarterly updates of income and expenses sent through compatible software, with the year-end return due by 31 January.

  7. October

    2 deadlines
    • 5Register for Self AssessmentUnited Kingdom · New sole traders, partners and others with untaxed income

      Deadline to tell HMRC you need to file a return for the tax year that ended on 5 April, for example after starting self-employment.

    • 31Paper Self Assessment returnUnited Kingdom · Anyone filing Self Assessment on paper

      Deadline for a paper return for the tax year that ended on 5 April. Online returns have until 31 January.

  8. November

    1 deadline
    • 7MTD for Income Tax quarterly updatesUnited Kingdom · Sole traders and landlords within Making Tax Digital for Income Tax

      Quarterly updates of income and expenses sent through compatible software, with the year-end return due by 31 January.

Worth knowing

What we can’t do, said plainly.

Knowing a firm’s limits is as useful as knowing its services. Where something needs a lawyer, a licensed signature or an authority’s decision, we say so early.

  1. 01

    We are accountants, not solicitors. Bespoke articles, shareholders’ agreements and investment terms should be drafted or reviewed by a lawyer.

  2. 02

    Forming a UK company does not give anyone the right to live or work in the UK. Visa and immigration questions need a regulated immigration adviser.

  3. 03

    Scottish taxpayers pay Income Tax at different rates and bands, and Northern Ireland follows specific VAT rules for goods. We point these out where they apply.

  4. 04

    If you are also taxable in the US, Pakistan or elsewhere, those obligations are separate from UK compliance. We flag them and scope any work on them separately.

  5. 05

    Figures, thresholds and dates here reflect our understanding at the time of writing. Several reforms are still being phased in, so we confirm the current position when we scope your work.

Questions

United Kingdom: frequently asked.

Answers to what clients in the UK ask us most. Each service page has more detailed questions.

All FAQs

Can I form a UK company if I don’t live in the UK?

Yes. Directors and shareholders don’t need to be UK resident, but the company needs a UK registered office, at least one director must be an individual aged 16 or over, and every director and PSC must verify their identity with Companies House. Verification can usually be done from abroad, depending on the documents you hold.

Do I need a UK address?

The company does. Its registered office must be an appropriate address in the UK where post will be dealt with, and PO boxes are not accepted. Directors can give a service address elsewhere, and their home addresses are kept off the public register.

Do I need to register for VAT?

You must if your VAT-taxable turnover for the last 12 months goes over £90,000 (at the time of writing), or you expect it to in the next 30 days alone. Below that, registration is optional. If your business is not established in the UK, there is no threshold at all.

What is a UTR?

A Unique Taxpayer Reference is a 10-digit number HMRC uses to identify you for Self Assessment or a company for Corporation Tax. A company, each of its directors and each partnership all have separate UTRs.

When are my company’s first accounts due?

Usually 21 months after the company was incorporated, and then 9 months after each financial year end. Corporation Tax works on periods of no more than 12 months, so a longer first period means two Company Tax Returns.

Should I be a sole trader or a limited company?

It depends on your profits, how much you take out, your clients and how much administration you are willing to take on. A company gives limited liability and can be more tax-efficient at higher profits, but it brings public filings and payroll. We run the numbers before you decide.

Can a non-resident director open a UK business bank account?

Often, but it depends on the bank. Each provider sets its own identity and residence rules, some ask for more documents from non-resident directors, and approval is their decision rather than ours.

Across borders

Working across more than one country?

Many clients have obligations in two or three of these systems at once. One team keeps them on a single calendar.

Speak with a consultant

Tell us where your UK company or self-employment stands today.

Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.

Or use our three-step guide, or email hello@fiscorra.com

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