Start with the way the business is legally structured. A sole trader and a limited company do not report or pay tax in the same way. Then check VAT, payroll and record-keeping obligations separately.
Choose your starting point
Working for yourself
Sole trader
You may need to tell HMRC about income from trading. Use the sole-trader calculator for a simple estimate, then check the official registration and reporting route.
Trading through a company
Limited company
A company pays Corporation Tax on taxable profits for an accounting period and must work out, pay and report the tax—it does not receive a Corporation Tax bill.
Common business tax tasks
- Check VAT registration. Registration is generally required when taxable turnover for the last 12 months exceeds £90,000, or you expect it to exceed £90,000 in the next 30 days. Special rules can apply.
- Employing someone. You normally need to register as an employer before the first payday, even when you are the only director of a limited company.
- Keep business records. The records and retention rules depend on the business structure and tax.
- Check digital-reporting scope. Use the Making Tax Digital hub to separate Income Tax and VAT requirements.