Hello NewcoOpen a business bank account
Your company is a separate legal person, so its money needs its own account. Keep company income and spending out of your personal account from day one: it keeps your records clean and protects the limited liability you set the company up for.
Tell HMRC within 3 months of starting to trade
You must register your company for Corporation Tax within 3 months of it starting to do business. That includes buying, selling, advertising, hiring staff or renting property, not just your first sale.
Forming the company is not the same as starting to trade. The 3-month clock starts when the company becomes active.
Show your company details
Your registered company name must appear on your website, invoices, letters, order forms and emails. Your website and business documents also need your company number, registered office address and that the company is registered in England and Wales.
Keep records for 6 years
Keep your company's financial records (sales, costs, bank statements, receipts, payroll) for at least 6 years from the end of the financial year they relate to. Digital copies are fine.
Decide how you'll pay yourself
As a director you'll usually take a mix of salary and dividends. Each has its own rules and paperwork, which is what part two covers.
Know your first deadlines
| What | When |
|---|---|
| Register for Corporation Tax | Within 3 months of starting to trade |
| Confirmation statement | At least once a year, within 14 days of the end of your review period |
| First accounts to Companies House | 21 months after the company was formed |
| Corporation Tax payment | 9 months and 1 day after the end of the accounting period |
| Company Tax Return | 12 months after the end of the accounting period |
Quick answers
When do I need to register my company for Corporation Tax?
Within 3 months of the company starting to do business. That includes buying, selling, advertising, hiring staff or renting property, not just making your first sale. Forming the company does not start the clock; becoming active does.
Does my limited company need its own bank account?
Yes, in practice. The company is a separate legal person, so keep its money in its own business account from day one. It keeps your records clean and protects the limited liability you set the company up for.
What company details must be on my website?
Your registered company name, company number, registered office address and the fact that the company is registered in England and Wales.
How long must I keep company records?
At least 6 years from the end of the financial year they relate to. Digital copies are fine.
When are my first company accounts due at Companies House?
21 months after the company was formed.
Video transcript
Read what's said in the part 1 video
Just set up a limited company? Here's your first ninety days.
One: open a business bank account. Your company is a separate legal person. Its money isn't your money.
Two: when you start trading, tell HMRC through your business tax account. The legal deadline is three months.
Three: put your company name, number and registered office on your website, invoices and emails.
Four: keep records of every penny in and out, for six years.
Five: don't just transfer yourself cash. Either pay a salary through payroll, registering with HMRC as an employer before the first payday, or take dividends, but only out of profits.
Six: diary your deadlines now. Confirmation statement: within fourteen days of your company's first birthday. First accounts: twenty-one months after you registered. Late accounts mean fines from a hundred and fifty pounds.
This is general information, not advice. Save it, and follow Hello Newco for part two: paying yourself properly.