Categories: Business

First 5 Things To Do After Starting A Company

Have you just formed a company and are wondering what’s next? or are you considering becoming your own boss but unsure what the post-registration process involves?

Don’t worry; you’re in good hands. The UK’s favourite company formation agent, 1st Formations, will take you through the first five things to do after starting a company.

First 5 things starting companyFirst 5 things starting company

IMAGE: UNSPLASH

Let HMRC Know You’re Trading

Unlike sole traders who pay Income Tax on their earnings, companies pay Corporation Tax (CT) on annual profits. Once you start trading, you have three months to register for CT and inform HMRC that your company is active for tax purposes.

To register for CT, you must first sign up for HMRC’s online services by creating a Government Gateway account.

You’ll then need to tell HMRC about your company, including details like your company name, unique taxpayer reference (UTR, HMRC will send this to you after incorporation), and the date you started trading.

Once registered, HMRC will send you an activation code and the deadlines for filing your CT returns and paying your bill to your registered office address.

Register For Value-Added Tax (VAT)

You must register for VAT once your company’s turnover exceeds £90,000. However, you can register before then, saving you lots of time later.

Certain goods and services are exempt from VAT, so whether you need to register depends on what you sell. You’ll find a list of exemptions on the HMRC website.

Open A Business Bank Account

While having a business bank account for your company is not legally required, we recommend having one. Opening an account before trading is also best to avoid confusing business transactions with personal ones.

As you would for a personal bank account, shopping around for the best business bank account is a good idea. Pay attention to any fees, interest rates, and other details to establish if it’s the right option for you.

Learn Your Key Dates And Filing Obligations

Running a company involves filing certain information by specific deadlines. So, the next step is to learn what you need to file, when, and where. Here’s what you’ll need to do:

File An Annual Confirmation Statement

A confirmation statement lets Companies House know that your company information on the public register is correct and up to date. You can update specific company details if something has changed by filing a confirmation statement.

You need to submit at least one confirmation statement a year. It’s due 14 days after your made up to date, which is normally the day before your incorporation anniversary.

File Annual Accounts

Annual accounts inform Companies House about your company’s financial performance. The information you’ll need to include in your accounts depends on your company size, but generally, it includes:

  • A profit and loss account
  • Balance sheet
  • Notes to the accounts

Your first set of accounts is due 21 months after incorporation. All further submissions are due nine months after the company’s accounting reference date (ARD). Your ARD is typically on the last day of the month that your incorporation anniversary falls, but you can change it later if needed.

Register For Self Assessment

Directors and shareholders must register for Self Assessment and file tax returns with HMRC for any taxable income or benefits received through their company, excluding salaries taxed via Pay As You Earn (PAYE). You must report income such as dividends, director’s loans, and savings or investment income.

The Self Assessment registration deadline is 5 October after the tax year; online returns are due by 31 January, and paper returns by 31 October.

Get Business Insurance

You may want to obtain specific business insurance depending on what your company does. Common types of business insurance include:

  • Public liability insurance
  • Product liability insurance
  • Professional indemnity insurance
  • Building and contents insurance

Business insurance is generally optional unless you employ people, in which case employer’s liability insurance is compulsory. However, protecting yourself, your company, and its assets is crucial against potential damages, losses, and legal claims if anything goes wrong.

Create A Website

Now you’ve ticked off the legal and administrative tasks after setting up a company, it’s time for the fun and creative part—launching a website.

An online presence is essential for attracting new customers, spreading the word about your business, and educating your audience about who you are and what you do.

Think about your domain name (ideally, it should match your company name) and how you want your website to look. Don’t worry if you have no design experience; website builders like WordPress and Wix come with lots of free templates to help you get started.

You should also create social media profiles for your business to reach and engage with a broader audience. Key platforms include Google Business, Instagram, and Facebook. Don’t forget to link your social media profile to your website and vice versa.

Looking For Support After Starting A Company?

Starting a company is exciting, but it can also feel overwhelming with so many dates and legal requirements to remember. Hopefully, this guide has made those first few steps easier to navigate.

If you need help setting up or running your company, contact the experts at 1st Formations. They can help you with tax registration, business banking, statutory filings, and even securing the ideal domain name for your website.

Disclaimer: The above references an opinion of the author and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. Invest responsibly and never invest more than you can afford to lose.

IMAGE: UNSPLASH

If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.

Ryan Mitchell

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