1. Develop a Business Idea and Plan: Define your business idea, target market, competition, and strategy for success. A detailed business plan will help guide you and secure potential funding.
2. Choose the Right Business Structure: Decide whether you want to operate as a sole trader, limited company, or partnership. Each has different legal and tax implications.
3. Register Your Business: If you’re setting up a limited company, register with Companies House. Sole traders and partnerships need to register with HMRC for tax purposes.Register your company with Companies House if you want to trade as a limited company. If you want to register your company with companies house, you can do it yourself or you can use an agency to do this for you, we used the The Formations Company
4. Understand Your Tax Obligations as a start-up: Get familiar with UK taxes like VAT, income tax, and corporation tax. Register for VAT if your business turnover exceeds the threshold (£85,000 subject to change).Business and Self-employed Taxes: A general guide for business tax, including information on Corporation Tax, VAT, and Capital Gains Tax, along with payment options and filing returns. Visit here​(
   GOV.UK

   Sign In to Your HMRC Business Tax Account: This page allows you to manage your business taxes, make returns and payments, and view your tax status across different taxes like VAT and Corporation Tax. Access your account​(

   GOV.UK

   Corporation Tax Overview: A guide on filing Corporation Tax, payment deadlines, and relief options for businesses in the UK. Learn more about Corporation Tax​(

   GOV.UK

    

5. Set Up a Business Bank Account: It’s advisable to keep your personal and business finances separate by opening a dedicated business bank account. So many people don’t realise how important it is to keep your finances separate from your business. Try to set up a business bank account early on and get into the habit of paying yourself a salary. Here are four banks offering small business accounts in the UK that may be suitable for your needs:
   1. Starling Bank: Known for its easy-to-use app and no monthly fees, Starling offers free UK transfers and cash deposits via the Post Office. It’s an entirely digital bank, making it a great option for startups and freelancers. More details at Starling Bank
   2. Tide: Tide offers business accounts with no monthly fees and quick account setup. It’s ideal for startups and small businesses, with additional tools like invoicing and integration with popular accounting software. Check out Tide
   3. Monzo Business: Monzo offers both free and paid business accounts. The free Lite account is a great option for sole traders and small businesses, with features like instant notifications and spending analytics. Learn more about Monzo Business
   4. Virgin Money: Their “M Account for Business” provides fee-free banking with access to cashback and accounting software like QuickBooks or Xero. It’s designed for businesses with turnovers under £1 million. Explore Virgin Money Business Accounts

   These banks provide a variety of features tailored to small businesses, from app-based management to fee-free services.

6. Obtain Necessary Licenses and Permits: Depending on your industry, you might need specific licenses or permits to operate legally (e.g., food, alcohol, or trade licenses).
7. Arrange Business Insurance: Protect your business from risks by getting appropriate insurance, such as public liability, employers’ liability (if you hire staff), and professional indemnity insurance.
8. Set Up Accounting and Financial Systems: Implement a reliable system for tracking income, expenses, and taxes. Hiring an accountant or using accounting software can help ensure compliance.
   

   Find an Accounting Software plan that’s right for you.

   There are quite a few options; some do free trials or discounts when you first sign up, so it’s worth shopping around.

   Zoho Books – offers free software for small businesses in the UK

   QuickBooks

   FreshBooks

   Xero

9. Comply with Employment Law: If you plan to hire employees, ensure you follow UK employment laws, including contracts, minimum wage, and pensions.Running a Payroll Software – If you are a start-up or a new business owner, then running payroll for the first time can be pretty daunting.
   If you have an accountant to take care of it for you – happy days, but if you are trying to keep costs low then you could try HMRC offer free Payroll Software
10. Build an Online Presence: Buy your domain name. Create a website and establish a presence on social media platforms. Consider setting up a Google My Business profile for free local visibility.

Bonus Tip

1. Don’t forget to Record your Mileage Claims

   There are lots of handy apps available but we like Crunch Accounting who provides handy mileage spreadsheets here that do all the calculations for you!

Taking these steps will set a strong foundation for launching and growing your business in the UK.