Start-up and New Business Accountants in Birmingham

You are not legally required to have an accountant, but most new business owners find that professional support from day one saves time, avoids costly mistakes and ensures the right structure and records are in place. Getting the structure, registrations and bookkeeping right from the start is significantly easier than correcting errors later — and most accountant fees are outweighed by tax savings in the first year.

For most new businesses with expected profit below £30,000, sole trader is simpler — you register for Self Assessment, pay Income Tax and National Insurance on profits and have minimal admin. Above £30,000–£50,000 profit, a limited company typically becomes more tax-efficient because you pay Corporation Tax (currently 19–25%) and can take salary and dividends. Limited companies also provide limited liability protection. We model the actual tax difference for your expected income and help you decide.

For a sole trader, you register for Self Assessment at GOV.UK — you must do this by 5 October following the end of the tax year in which you started trading. For a limited company, you incorporate at Companies House (usually same day online from £50), then register for Corporation Tax with HMRC within 3 months of starting to trade. If you will have employees, you also register for PAYE. We handle all of these registrations for you.

Start-up accounting costs in Birmingham vary by what you need. A sole trader Self Assessment return typically starts from around £150–£300. A new limited company with annual accounts and Corporation Tax typically starts from £500–£1,000 per year. Company formation assistance is often available separately. At Gondal Accountancy we offer clear fixed-fee pricing — highly rated by our clients. Contact us for a free no-obligation quote.

From the start, keep: sales invoices and payment records, expense receipts (paper or digital photo), bank statements for a dedicated business account, a mileage log if you use a vehicle for business, any HMRC or Companies House correspondence, and payroll records if you have employees. Setting up Xero, QuickBooks or FreeAgent immediately makes this significantly easier and prepares you for Making Tax Digital requirements.

Company formation is the process of registering a new limited company at Companies House. It involves choosing a company name, confirming directors and shareholders, providing a registered address and filing the memorandum and articles of association. Most formations complete online within a few hours. Once formed, you must register for Corporation Tax with HMRC within 3 months. We handle the full process and ensure all follow-on registrations are complete.

You must register for VAT when your taxable turnover exceeds £90,000 in a rolling 12-month period. You can also register voluntarily below this threshold — useful if your customers are VAT-registered businesses, as you can reclaim input VAT on purchases. Some new businesses benefit from the Flat Rate Scheme, which simplifies VAT accounting. We advise on the best approach for your type of business from the start.

Most limited company directors take a small salary (typically up to the National Insurance threshold, around £12,570) and top up with dividends from company profits. This combination is usually the most tax-efficient approach. The salary is processed through payroll (PAYE) and dividends are declared from after-tax company profits. We set up director payroll and help you plan the most efficient split for your personal tax position.

Making Tax Digital for Income Tax (MTD ITSA) will require sole traders and landlords with qualifying income over £50,000 to keep digital records and submit quarterly updates from April 2026; over £30,000 from April 2027; and over £20,000 from April 2028. MTD for VAT already applies to VAT-registered businesses. Setting up Xero, QuickBooks or FreeAgent from the start means you are MTD-ready from day one.

Yes. Moving from PAYE employment to self-employment is one of the most common transitions we support. You need to register for Self Assessment, understand which expenses you can claim and plan for the fact that tax is no longer deducted at source. You will pay Income Tax and National Insurance through Self Assessment — often as a larger lump sum in January. We help you understand your tax position and set aside the right amount from your first invoice.

Yes. We help prepare financial projections, cash flow forecasts and business plans to support bank lending, investor conversations or simply to plan your first year. A clear picture of expected income, costs, tax payments and cash timing helps you make confident decisions — and avoid the cash shortfall that catches many new businesses off guard in their first tax payment year.

Yes. Gondal Accountancy supports new businesses and start-ups across Birmingham, Solihull, Coventry, Wolverhampton and the wider West Midlands — as well as clients across the UK remotely — with accounting, company formation, bookkeeping, tax, VAT, payroll and business planning. Highly rated by our clients. Contact us for a free 30-minute consultation.