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Starting a Business
Starting a New Business – Accountancy and Tax Advice
Starting your own business is exciting, but there is more to consider than simply providing your products or services. Choosing the right business structure, understanding your tax obligations, managing cash flow and keeping accurate financial records are all important decisions.
Getting the right advice from the outset can help you avoid unnecessary costs, make informed decisions and put good financial systems in place.
At Dunelm, we provide practical accountancy and tax advice for new businesses, helping you understand your options and get your business off to the right start.
Choosing the Right Business Structure
One of your first decisions is choosing the most appropriate legal structure for your business. The main options are:
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Sole trader
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Partnership
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Limited Liability Partnership (LLP)
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Limited company
Each has different tax, legal and administrative responsibilities.
Operating as a sole trader is generally straightforward, but you are personally responsible for business debts and liabilities. A limited company is a separate legal entity and offers limited liability protection in many circumstances, although directors may still have personal responsibilities and liabilities.
Limited companies also have additional reporting requirements, including filing annual accounts and confirmation statements with Companies House.
We can explain the advantages and disadvantages of each structure and help you choose an approach that suits your circumstances. If you are considering incorporating a company or forming an LLP, it is worth taking advice before registering.
VAT Registration
VAT registration is another important consideration when starting a business.
The compulsory VAT registration threshold is currently £90,000 of taxable turnover over a rolling 12-month period. You may also need to register if you expect to exceed this threshold in the next 30 days.
Voluntary registration may be beneficial, depending on your customers, expenses and type of business.
If you register, you may also be eligible to use a VAT accounting scheme, such as the Flat Rate Scheme, Cash Accounting Scheme or Annual Accounting Scheme.
We can help you understand whether VAT registration is appropriate and explain your ongoing responsibilities.
Bookkeeping and Financial Records
Good bookkeeping is essential from day one. Keeping accurate records of your income, expenses, invoices and receipts helps you monitor business performance and meet your tax obligations.
Choosing suitable accounting software and establishing an efficient bookkeeping system early on can save considerable time and effort.
We can advise on your record-keeping requirements and help you put practical accounting systems in place.
Registering for Tax
Your tax registration requirements will depend on your business structure.
Sole traders and partnerships generally need to register for Self Assessment where they have a tax return filing obligation arising from their self-employment or other circumstances.
For example, if you need to submit a tax return for the 2025/26 tax year and have not previously been required to file one, the usual deadline to notify HMRC is 5 October 2026.
Limited companies must be registered with Companies House and have separate tax responsibilities, including Corporation Tax, company accounts and the relevant HMRC registrations.
We can help identify which registrations you need and explain your tax responsibilities.
Choosing Your Accounting Year End
Your accounting year end can affect how your accounts are prepared and when certain tax and filing obligations arise.
For sole traders and partnerships, the basis period rules for Income Tax have changed, so choosing an accounting date should be considered carefully.
For limited companies, the accounting reference date is normally determined by the date of incorporation, although it can usually be changed.
We can advise on the most appropriate accounting period and help you plan for your reporting and tax deadlines.
Other Business Start-Up Considerations
There are several other areas to consider when setting up your business, including:
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Business banking and cash flow
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Accounting software and bookkeeping
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Business insurance
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Employment and payroll
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Business expenses and tax-deductible costs
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Contracts and terms of business
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Business finance and borrowing
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Taking money from your business
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Pricing and profitability
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Financial planning and future growth
Making the right decisions early can help establish a sound financial foundation for your business.
Accountants for New Businesses
At Dunelm, we understand that starting a business can seem complicated. Our aim is to make the financial and tax aspects as straightforward as possible, providing clear, practical advice so you can concentrate on running and growing your business.
We work with new businesses, sole traders, partnerships and limited companies throughout Newmarket, Bury St Edmunds, Ely, Thetford, Haverhill, Cambridge and across East Anglia.
Whether you are considering self-employment, forming a partnership or setting up a limited company, we can discuss your plans and help you understand the accounting and tax implications.
Free Initial Consultation
Thinking about starting a business? We offer an initial consultation free of charge to discuss your plans and explain how we may be able to help.
Contact Dunelm today at
The information on this page is intended as general guidance and should not be relied upon as a substitute for advice based on your individual circumstances. Tax rules and thresholds can change, so we recommend seeking professional advice before making decisions about your business.
