Your first year, month by month

Here is the whole first year in one place. Every step links to the chapter that explains it. Do not try to do it all at once — just work down the list. Dates depend on when you start and, for companies, on your own year-end.

The plan

1. Set up

   Before you open

   • Test your idea and write a simple plan. Book a free chat with Business Gateway.
   • Choose your business shape and register — as a sole trader, company or partnership.
   • Check if your trade needs a licence. Some take months, so start now. Food businesses must register 28 days before opening.
   • Sort your insurance.
2. Day 1

   Your first days

   • Open a business bank account.
   • Start keeping records from your very first sale, with software.
   • Put your business details on your invoices and website.
   • Show your rateable value and apply for the Small Business Bonus Scheme if you have premises (it is free).
3. Month 1

   Register for tax

   • Sole trader: register for Self Assessment with HMRC (the hard deadline is 5 October after your first tax year — but do it early).
   • Company: you are usually signed up for Corporation Tax when you register. Set up PAYE if you will pay yourself a salary.
   • Pay the ICO data protection fee if you handle personal data.
4. Hiring

   If and when you take someone on

   • Get employers' liability insurance before they start.
   • Check their right to work, and do a PVG check if the role needs one.
   • Register as an employer for PAYE, and give a written statement of the job by day one.
   • Choose a pension scheme — your duties start the day they start.
5. Every month

   Your monthly habits

   • Update your books and file your receipts.
   • Move 20–30% of your profit into a separate account for tax.
   • Check your rolling 12-month turnover against the £90,000 VAT limit.
   • If you employ people: run payroll on each payday (RTI), and pay HMRC and the pension provider by the 22nd.
6. Within 5 mo

   If you hired: pension paperwork

   • Write to all staff about pensions within 6 weeks of their start.
   • Send your declaration of compliance to The Pensions Regulator within 5 months — even if nobody had to be enrolled.
7. 5 Apr

   The tax year ends

   The tax year runs to 5 April. After it ends you can add up your first year's figures and get ready to file.

8. 5 Oct

   Self Assessment deadline (sole traders)

   If you have not already, you must register for Self Assessment by 5 October after the end of your first tax year of trading. Late registration risks a fine.

9. 31 Jan

   File and pay your tax

   • File your online Self Assessment return and pay your tax by 31 January.
   • If your bill is over £1,000, you also pay your first payment on account towards next year — so the bill can be much bigger than you expect. Be ready for it.
10. 31 Jul

    Second payment on account

    If payments on account apply to you, the second half is due on 31 July.

11. Company

    Company dates (if you set one up)

    • Confirmation statement to Companies House every year.
    • First accounts are due 21 months after you set the company up.
    • Corporation Tax is paid 9 months and 1 day after your year-end, and the return is filed 12 months after it.
12. Year end

    Look back and check

    • Review your packaging (EPR) position — the limits are checked yearly.
    • Check whether you are near the VAT limit.
    • Renew your insurance and your ICO fee.
    • Book another free Business Gateway review to plan year two.