Welcome to your new company or charity!
Congratulations on forming your limited company or charity! Now that you’re officially up and running, here are some important next steps to help you build a sustainable, ethical, and well-managed organisation:
Open a company bank account
Every company needs its own bank account. You’ll need your company and/or charity registration number to get started. Once opened, remember to pay in your share capital if you’re a company limited by shares (normally £1 or £100). Consider choosing a bank with strong ethical and environmental credentials to align your finances with your values.
Keep your books in order
Good bookkeeping isn’t just a legal requirement—it’s key to running a transparent and responsible business or project. HMRC recommends updating records weekly but why not keep an eye on things most days. We recommend using Xero for all limited companies and charities.
Communicate clearly and legally
Make sure all company communications (emails, website, stationery, business cards) include your company and/or charity number and registered office address. This builds trust and ensures compliance.
Consider insurance responsibly
Think about the types of insurance your company might need—like employer’s liability, public liability, and professional indemnity. Review your coverage regularly and choose providers who support ethical business practices.
Payroll and PAYE
If you’re paying yourself or others, you’ll need to register for PAYE with HMRC. We can help manage this for you, including payslips and monthly filings. Fair pay and proper reporting are part of running a socially responsible business.
Benefits in kind
If your company provides perks like a car or heath insurance, these will be taxable on the individual. It’s important to report them properly to stay compliant and avoid unexpected costs.
VAT registration
If your sales exceed £90,000 in any 12-month period, VAT registration is mandatory. You might benefit from registering earlier, especially if your clients are VAT registered. This can help streamline your finances and improve transparency.
National insurance
If you were previously self-employed, let HMRC know you’ve switched to a limited company so you can stop paying Class 2 National Insurance.
Dividends – only for companies limited by shares with accumulated profits
Taking a low salary and receiving dividends can be tax-efficient. Just make sure dividends are properly voted, recorded, and paid. Our guide can help you do this correctly and ethically.
IR35 considerations
IR35 rules help determine whether you’re truly self-employed or effectively an employee. It’s important to assess this carefully to ensure correct tax practices.
Use of home as office
If you work from home, you may be able to claim expenses. A written agreement between you and your company helps clarify this and ensures fair use of resources.
Register for HMRC online services
This makes managing your company’s tax affairs easier and more efficient. You can register https://www.gov.uk/log-in-register-hmrc-online-services.
Personal tax returns
Most company directors must file annual personal tax returns—even if no extra tax is due. It’s part of being a responsible business owner.
If you would like to discuss this in more detail relating to your business, please feel free to book a free online meeting.
