What to Do After Registering a UK Limited Company
You've got your company number. The Companies House email is sitting in your inbox. Here's what actually happens next — in the order it should happen — so nothing important slips.
Within 3 months of trading: register for Corporation Tax with HMRC, open a business bank account in the company name, set up bookkeeping, register for PAYE if running payroll, check the VAT threshold, and decide your salary/dividend split. Set calendar reminders for the Confirmation Statement (annual) and first accounts (due 21 months after incorporation).
1. Tell HMRC you're actively trading
Incorporation creates the company; trading means doing business. You must register for Corporation Tax within 3 months of starting to trade. The clock starts when you do anything that counts as trading — sending an invoice, signing a contract with a customer, buying stock, paying for advertising.
To register, log into your HMRC business tax account using the Government Gateway credentials linked to the company. You'll need the company UTR HMRC sent by post a few days after incorporation, the date trading began, and your accounting period dates.
If you're going to take any salary from the company — including a small director's salary at the NI threshold — register the company as an employer with HMRC. PAYE registration takes a few days and lets you run payroll properly from your first paid month.
2. Open a business bank account in the company name
A limited company is a separate legal entity. Its money must sit in its own account, not yours. Using your personal account for company money creates director's loan account complications and can pierce the limited liability protection in extreme cases.
Most app-based providers (Tide, Mettle, Starling, Monzo Business) open in 24–72 hours with electronic verification. High-street banks take 1–3 weeks and ask for more documents.
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3. Set up bookkeeping early
The basics that compound
0/6 · 0%Doing this from day one is the difference between a calm year-end and a panicked one. Most accountants will recommend their preferred software; you can switch later but it's cheaper to start on the right one.
4. Decide how to pay yourself
UK directors typically use a mix of:
- A salary, if appropriate — for 2026/27 distinguish the £5,000 employer NI Secondary Threshold from the £6,708 Lower Earnings Limit and £12,570 employee NI Primary Threshold/Personal Allowance. A £5,000 salary is below the Lower Earnings Limit and does not by itself secure a qualifying year; employer NIC may apply above £5,000.
- Dividends from post-Corporation-Tax distributable profit — not subject to NIC, but still subject to personal dividend tax and company-law rules
- Pension contributions made by the company — deductible against Corporation Tax
- Expense reimbursements for legitimate business costs paid personally
The right mix depends on your profit, other income, household setup and pension goals. This is the single area where a £100/month accountant fee pays for itself many times over.
Dividends must be paid from distributable profits and need a board minute plus dividend voucher each time. Backdating or improperly documented dividends can be reclassified by HMRC as salary, triggering PAYE and NI.
5. Insurance, contracts and the boring-but-important
- Professional indemnity insurance — important for consultants, designers, software, professional services
- Public liability — for anyone working in customer premises or with the public
- Employer's liability — legally required from your first employee
- Cyber insurance — increasingly relevant for any business handling customer data
- Standard client contract / terms of business — protects you on scope, payment terms and IP
6. Calendar your deadlines now
- Corporation Tax registration: within 3 months of trading
- Confirmation Statement: annually, on the anniversary of incorporation
- First annual accounts: 21 months after incorporation
- Subsequent annual accounts: 9 months after the accounting period end
- Corporation Tax payment: 9 months and 1 day after period end
- CT600 Corporation Tax return: 12 months after period end
- VAT returns: quarterly, 1 month and 7 days after quarter-end
Frequently asked questions
Not legally required, but for a limited company an accountant typically pays for themselves through Corporation Tax planning, salary/dividend optimisation and time saved. Most charge a fixed monthly fee for small companies.
You can pay yourself a small salary that creates a director's loan if there's no profit yet — but it has to be repaid or settled later. Talk to an accountant before drawing money in the first month.
If your company is dormant (no transactions other than statutory ones), you don't pay Corporation Tax for that period, but you still file dormant accounts and a Confirmation Statement.
Related guides
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Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.