I need an accountant
Starting a limited company
A new company has a set of first-time jobs: telling HMRC it is active, setting up payroll if anyone is paid, and its first accounts and confirmation statement. Here is what falls due, and when.
The short answer
In its first months, a company must tell HMRC within 3 months once it becomes active for Corporation Tax, and register for PAYE before the first payday if it pays anyone, including a director. Its first accounts are due at Companies House 21 months after it was registered, and its first confirmation statement within 14 days of the first 12 months ending. You can do all of this yourself, but as a director you stay responsible for it whoever does the work.
What falls due, and when
| What | Who to | When |
|---|---|---|
| Tell HMRC the company is active for Corporation Tax | HMRC | Within 3 months of the start of its tax accounting period1 |
| Register as an employer (PAYE), if the company pays anyone, including you as a director | HMRC | Before the first payday, and not more than 2 months before you start paying people2 |
| First confirmation statement | Companies House | Within 14 days after the review period ends; for a first statement, that period ends 12 months after the company was incorporated3 |
| First annual accounts | Companies House | 21 months after the date the company was registered4 |
| Pay Corporation Tax, or tell HMRC none is owed | HMRC | 9 months and 1 day after the Corporation Tax accounting period ends4 |
| Company Tax Return | HMRC | 12 months after the Corporation Tax accounting period ends4 |
Your company's own dates are on its page on the Companies House register.
When does a company become "active"?
HMRC treats a company as active when it is, for example, trading, providing services, earning interest or receiving any other income. Writing a business plan or negotiating contracts before you open does not count as trading on its own. A company that has not started yet can be dormant for Corporation Tax.1 If you are not sure which applies, this is a good first question for an accountant.
Paying yourself counts
GOV.UK says you must register as an employer even if you are only employing yourself, for example as the only director of a limited company.2 Whether and how to pay yourself a salary is a tax question to discuss with an accountant or tax adviser.
Records you must keep from day one
A company is a separate legal entity, so its money must be kept apart from yours. GOV.UK suggests a business bank account as the simplest way to do this.5 The company must keep accounting records of all money received and spent, its assets, debts, stock and the goods it buys and sells. Records are kept for 6 years from the end of the last financial year they relate to, or longer in some cases. HMRC can fine a company £3,000, or a director can be disqualified, if accounting records are not kept.5
What an accountant can do in year one
This is what firms can take on for a new company. What you actually get depends on what you agree in your engagement letter.
- Register the company for Corporation Tax and, if needed, PAYE and VAT.
- Set up accounting software and a way of keeping receipts and invoices.
- Run payroll, or show you how to.
- Answer early questions, such as how to pay yourself and what you can claim as a business cost.
- Prepare and file the first accounts, Company Tax Return and confirmation statement.
- Act for the company with HMRC once you authorise them.6
Some owners only bring in an accountant for the first accounts and tax return. If you leave it that late, check the 21-month and 12-month deadlines first, because a firm needs time to do the work.
Doing it yourself
No law says a company must use an accountant. The directors stay legally responsible for its records and filings either way. A small company may be exempt from audit, but a company needs one if, for example, its articles say so or shareholders with at least 10% of the shares ask for one.8 An audit can only be done by a statutory auditor who is a member of a recognised supervisory body.9 HMRC's free online service for filing company accounts and the Company Tax Return together has closed. GOV.UK now points to a list of approved commercial software and other ways to file.7 For the wider question, see Do I need an accountant?
Before you pick a firm
Ask for the fee in writing and a list of what it covers. Our guide Choosing your first accountant has the checks to make, and How accountancy fees work explains how firms charge.
Sources
- HMRC, "Corporation Tax: trading and non-trading" (when a company is active, and telling HMRC within 3 months). gov.uk/guidance/corporation-tax-trading-and-non-trading. Checked 12 October 2026.
- GOV.UK, "Register as an employer". gov.uk/register-employer. Checked 12 October 2026.
- GOV.UK, "Running a limited company: confirmation statement". gov.uk/running-a-limited-company/confirmation-statement. Checked 12 October 2026.
- GOV.UK, "Accounts and tax returns for private limited companies". gov.uk/prepare-file-annual-accounts-for-limited-company. Checked 12 October 2026.
- GOV.UK, "Running a limited company: company and accounting records". gov.uk/running-a-limited-company/company-and-accounting-records. Checked 12 October 2026.
- GOV.UK, "Appoint someone to deal with HMRC on your behalf". gov.uk/appoint-tax-agent. Checked 12 October 2026.
- GOV.UK, "File your company accounts and Company Tax Return" (states the service has closed). gov.uk/file-your-company-accounts-and-tax-return. Checked 12 October 2026.
- GOV.UK, "Audit exemption for private limited companies". gov.uk/audit-exemptions-for-private-limited-companies. Checked 12 October 2026.
- Companies Act 2006, section 1212 (eligibility for appointment as a statutory auditor). legislation.gov.uk/ukpga/2006/46/section/1212. Checked 12 October 2026.