Starting a business is exciting — but the administrative side can feel daunting. Getting your accounting foundations right from the outset will save you considerable time and stress further down the line. Here is a practical checklist for new business owners in Sussex.
1. Choose the right business structure
Before registering with HMRC, decide whether you will operate as a sole trader, a partnership or a limited company. Each has different tax implications, levels of liability, and administrative requirements. Take advice at the outset — changing structure later can be complicated and costly.
2. Register with HMRC
- Sole traders: register for self-assessment by 5 October following your first trading year
- Limited companies: register at Companies House, then register for corporation tax within three months of starting to trade
- If your taxable turnover exceeds £90,000, register for VAT
- If taking on employees, register as an employer and set up PAYE
3. Open a dedicated business bank account
Mixing personal and business finances is one of the most common mistakes new business owners make. A dedicated account makes bookkeeping easier and is a legal requirement for limited companies.
4. Set up bookkeeping from day one
Choose cloud-based bookkeeping software (Xero, QuickBooks or FreeAgent) and link it to your business bank account from the start. This makes MTD submissions straightforward and gives you real-time visibility of your finances.
5. Understand your key tax deadlines
- 31 January: online self-assessment filing and payment
- 31 July: second payment on account (if applicable)
- 5 April: end of the tax year
6. Keep all receipts and records
HMRC can inspect your records for up to six years. Keep receipts for all business expenses — digitally wherever possible. When unsure whether something qualifies, keep the receipt and discuss it with your accountant.
7. Get an accountant
Many new business owners in Sussex try to manage their own accounting to save money. A good accountant will typically save you more than their fee through tax efficiency alone — and frees you to focus on growing your business.
Talk to us about your situation
Our chartered accountants work with small businesses, landlords and contractors across Surrey, Kent and Sussex. Get in touch for a free initial consultation.
