The Three Things Every New UK Business Owner Needs to Understand

Setting up a UK limited company is straightforward. Running it compliantly — understanding your tax obligations, keeping the right records, and meeting your Companies House filing requirements — is where most new business owners struggle. Here's an overview of what you need to have in place.

Companies House Registration

Registering a limited company at Companies House costs £100 online (as of 1 February 2026) and typically takes 24 hours. You'll need a company name (checked against the existing register), a registered office address, at least one director, and details of your shareholders. From the point of registration, you have ongoing filing obligations — annual accounts, a Confirmation Statement (£50 online), and notification of any changes to directors, shareholders, or registered office.

Corporation Tax

Your company must register for Corporation Tax with HMRC within three months of starting to trade. Corporation Tax is charged on your company's profits — currently at 19% for profits under £50,000 and 25% for profits over £250,000, with marginal relief between those thresholds. Your Corporation Tax return must be filed within 12 months of your accounting period end, and any tax owed must be paid within nine months and one day.

Making Tax Digital

From April 2026, Making Tax Digital for Income Tax applies to sole traders and landlords with income above £50,000. For limited companies, MTD for Corporation Tax is expected to follow in future years. Understanding the direction of travel — and setting up digital record-keeping now — puts you ahead of the curve.

VAT

If your taxable turnover exceeds £90,000 in any 12-month period, you must register for VAT. You may also choose to register voluntarily below that threshold — which can be advantageous if your customers are VAT-registered businesses. VAT returns are filed quarterly under Making Tax Digital for VAT.

Read next: How to Set Up a UK Limited Company — Step by Step

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This article is for educational and informational purposes only and does not constitute legal, financial, or professional advice. Always verify current requirements and consult a qualified professional for your specific situation.