I’ve started a business. Do I set up as self employed or Limited Company?

Self Employed

Register for self assessment with HMRC. This will inform them that you are self employed and will be completing a tax return at the end of each tax year. You will need to register by 5 October in your business’s second year. So if you began trading April 2020 then you have until 5 October 2021 to register, but generally its best to register straight away. One to tick off the list!

Limited Company

A Limited Company will need to be set up before you start trading as you cannot trade through a Limited Company that does not yet exist.

First thing to do is type your new company name into Companies House to check if the name is available. Most accountants will be able to incorporate a Limited Company. If you prefer to do it yourself there is a straight forward guide on HMRC website that will take you through the process. There is a £12 fee.