Startup accountants · UK-wide
Accountants for startups UK.
Right structure from day one. First-year accounts. VAT timing. First hire payroll. R&D if it applies. Named accountant. From £100/month.
Book a call →What a startup accountant does in year one
Year one decisions are disproportionately important — structure, VAT timing, payroll setup, and R&D eligibility are all harder to fix retroactively than to get right initially. We work with startups from incorporation through to their first £500k, handling every compliance milestone and flagging every planning opportunity as it becomes relevant.
Key compliance milestones for UK startups
Before incorporation
Choose the right structure
Sole trader vs limited company — modelled for your specific revenue expectations, risk tolerance, and tax position. We advise before you incorporate, not after.
Day 1
Company formation and setup
Companies House incorporation, HMRC registration (corporation tax, PAYE if hiring, VAT if applicable), bank account setup, and initial record-keeping system.
Month 1–3
Bookkeeping system and software
Set up Xero or equivalent. Chart of accounts configured for the business. MTD-compatible from day one.
When approaching £90k turnover
VAT registration decision
Monitor rolling 12-month turnover. Advise on voluntary registration (if B2B and beneficial) vs waiting for mandatory threshold. [VERIFY at gov.uk]
First hire
PAYE and auto-enrolment
Register as an employer, set up payroll software, submit RTI on payday, enrol eligible employees in a pension scheme.
Year 1 end
First annual accounts and CT600
Statutory accounts prepared and filed with Companies House. CT600 and corporation tax payment to HMRC. R&D assessed if any qualifying activity.
Ongoing annually
Annual Compliance Review
Every year: scope review, fee review, expansion opportunities, VAT check, R&D screen, structure optimisation.
Startup accountant — FAQs
What does a startup accountant do?
A startup accountant handles the compliance decisions that matter most in year one: choosing the right business structure (sole trader vs limited company), registering for VAT at the right time, setting up payroll for first hires, preparing the first annual accounts and CT600, and advising on whether any activity qualifies for R&D relief. They also set up the record-keeping system so year-end is not a scramble.
Should my startup be a limited company or sole trader?
For most startups with profit above £30,000–£40,000, a limited company typically becomes more tax-efficient. A limited company also offers limited liability — your personal assets are not at risk from business debts. But it adds compliance cost and complexity. We assess this at inception for every startup client and model the specific numbers rather than giving a generic recommendation.
When should a startup register for VAT?
Mandatory registration is required once taxable turnover exceeds £90,000 in any rolling 12-month period [VERIFY]. But for B2B startups whose customers are VAT-registered, voluntary registration from day one can be beneficial — you reclaim VAT on your costs immediately. For B2C startups, early registration means 20% higher prices or lower margins. The timing decision matters and depends on your customer base.
Do startups need an accountant from day one?
Not legally — but the structure decisions made in year one are hard to undo. Incorporating incorrectly, missing the VAT registration window, not setting up proper records from the start, or missing the first R&D claim can each cost thousands. An accountant who works with you from incorporation is far cheaper than one who has to unpick year one's mistakes in year two.
How much does a startup accountant cost?
At RR Accountants, startup accountancy starts from £100 per month for sole traders and £150–£250 per month for limited companies depending on complexity. First-year setup (incorporation, structure advice, first accounts) is included in the monthly engagement.
Starting a business?
Get the structure right before you launch.
Book a 20-minute call. We model the structure decision and set you up from incorporation.
Book a call →