The registrations, in order
- Identity verification. Every director and person with significant control must verify their identity with Companies House, either through GOV.UK One Login or through a Companies House authorised agent. It has been compulsory for new appointments since November 2025.
- Corporation Tax. HMRC writes to the registered office within a couple of weeks of incorporation with the company’s UTR. The company then has three months from starting to trade to register for Corporation Tax.
- PAYE. Only if the company is going to run a payroll, including for the director alone. It takes a few days, and it is needed before the first payment, not after.
- VAT. Only if the company must, or if it benefits from registering. Get the Corporation Tax UTR first; the VAT application is smoother with it.
- CIS. If the company is in construction, as contractor, subcontractor or both.
The decisions that are hard to change later
- The accounting reference date. Companies House defaults to the end of the month the company was incorporated in. That is rarely the best date, and moving it is easy once and awkward repeatedly.
- Share structure. One ordinary share of £1 is fine for a sole owner. If a spouse or a second shareholder is involved, getting the share classes right at the start is far easier than restructuring afterwards.
- Registered office. It is public and it receives statutory post. A home address used as the registered office stays on the public record after the company moves, unless Companies House agrees to suppress it on application.
The practical bits nobody mentions
Open a business bank account before the company spends anything. Mixing personal and company money is the most common cause of a messy first year, and it creates a director’s loan account that then has to be unpicked.
Keep every receipt from day one, including the ones from before incorporation. Pre-trading expenditure from the previous seven years can generally be claimed in the first period.
Do not take money out until you know whether it is salary, dividend or a loan. Working that out afterwards is how directors end up with an overdrawn loan account and a s455 charge.
What the first year involves
- A confirmation statement within a year and two weeks of incorporation.
- First accounts due 21 months after incorporation, then 9 months after each year end.
- Corporation Tax payable 9 months and 1 day after the first period end.
- The CT600 due twelve months after the period end.
It is not much. It is all on dates that do not line up, which is why they get missed.
Common questions
Q1How much does it cost to set up a limited company?
Companies House charges a small incorporation fee. The cost that matters is what running the company takes afterwards, not the formation.
Q2When do I need to register for Corporation Tax?
Within three months of starting to trade. HMRC issues the UTR to the registered office shortly after incorporation.
Q3Do I need a business bank account?
The company’s money is the company’s, not the director’s, and must be kept separate. In practice, yes, and open it before the company spends anything.
Q4When are my first accounts due?
21 months after incorporation for the first set, then nine months after each subsequent year end.
