Starting a business is exciting — but getting the financial and legal foundations right from day one saves significant time and cost later. We guide new Brighton businesses through every step, from choosing the right structure to filing their first accounts.
Not sure whether to trade as a sole trader or set up a limited company? We'll talk through your options clearly and help you make the right decision for your circumstances.
Book a Free Chat| When | What to do |
|---|---|
| Before you start | Choose sole trader or limited company, and open a separate business bank account |
| When you start trading | Register with HMRC. Sole traders must register for Self Assessment by 5 October after the end of the tax year in which they started |
| If you employ anyone | Register as an employer and set up payroll before the first payday |
| Once turnover nears £90,000 | Register for VAT, or earlier if you would gain from reclaiming VAT on start-up costs |
| First accounting year end | Limited company first accounts are due 21 months from incorporation |
If your trading income is £1,000 or less in a tax year, the trading allowance means you do not need to report it. Above that, you can deduct the allowance instead of your actual expenses, or claim the real ones.
A sole trader is simpler and cheaper to run, and the profit is taxed on you directly. A limited company gives limited liability and lets you leave profit in the business, but it has more filing and formal rules. Since dividend rates rose, taking every pound of profit out of a company costs about the same as sole trader tax, so the decision rests more on liability, retained profit and pensions than on a profit threshold. Our structure comparison has worked numbers.
Making Tax Digital for Income Tax applies to sole traders with income over £50,000 from April 2026, so choose software that supports it from day one. See bookkeeping and what bookkeeping involves.
Sources: GOV.UK: set up as a sole trader, GOV.UK: set up a limited company.
The right structure depends on your expected profits, risk appetite, and growth plans. Sole traders are simpler and cheaper. Limited companies offer tax efficiency at higher profit levels and limited liability protection. We provide a personalised analysis for your situation.
Formation costs £50 via Companies House and takes around 24 hours. We handle the process for you and ensure all HMRC registrations — PAYE, corporation tax, VAT — are completed correctly.
Yes, if your trading income is over £1,000 in a tax year. You must register for Self Assessment by 5 October after the end of the tax year in which you started trading.
For a private limited company, the first accounts are due at Companies House 21 months after the date of incorporation. The first Corporation Tax return and payment follow their own deadlines.