What Does UK Limited Company Compliance Actually Mean in Your First Year of Business?
Registering a UK limited company takes minutes. What comes after is where most new directors — especially those based outside the UK — are caught off guard. From the day of incorporation, your company has legal obligations to two separate government bodies: Companies House, the UK's official registrar of companies, and HMRC, the UK's tax authority.
The obligations run on different clocks, with different deadlines and different penalties. Missing one does not excuse the other, and neither organisation sends reminders. This guide walks you through every key task in chronological order, so you know exactly what to do and when from the moment your company is registered.
What to Do Immediately After Incorporating a UK Limited Company: Companies House and Record-Keeping Obligations
Keep Accounting Records from Day One
The moment your company is incorporated, you are legally required to keep accounting records. This is not optional and it does not wait until you start trading. The records must cover:
- All money received and spent by the company
- Company assets and debts
- Stock owned at the end of the financial year and how the stock figure was calculated
- All goods sold and bought, and who they were sold to and bought from
Accounting records must be kept for at least six years after the financial year they cover. Failing to maintain them can result in a £3,000 fine.
Notify Companies House of Directors, PSCs and Company Secretary Details
Companies House must be kept informed of your company's directors and People with Significant Control (PSCs) at all times. Any changes to these details must be reported within 14 days of the change. This includes new appointments, resignations, and changes to personal information such as addresses.
What Changed on 18 November 2025: Local Statutory Registers
From 18 November 2025, UK limited companies are no longer required to maintain their own separate local registers of directors, company secretaries, and PSCs. This information is now held centrally at Companies House. However, you must still maintain your own register of members (shareholders). This is the one statutory register that has not moved to the central system and must be held either at your registered office or at a Single Alternative Inspection Location (SAIL).
Identity Verification for Directors and PSCs
From 18 November 2025, identity verification with Companies House became a legal requirement for all UK company directors and PSCs. Anyone appointed as a new director or PSC after that date must verify their identity before the appointment can be registered. Existing directors and PSCs must complete verification by the time their company's next confirmation statement is due.
Foreign nationals directing a UK company from abroad must verify too. The requirement applies regardless of where you are located. Verification can be done directly through GOV.UK One Login or through an Authorised Corporate Service Provider (ACSP). 1Office UK is a registered ACSP and can carry out identity verification on your behalf.
Need help with Companies House identity verification as a foreign national? As a registered ACSP, 1Office UK can verify the identity of directors and PSCs on your behalf, removing the need to navigate GOV.UK One Login from outside the UK.
Contact 1Office UK about identity verification →Display Your Company Name and Details Correctly
From day one, your company must display its registered name at its registered office and at any other location where it carries out business. You are not required to display a sign if you run the business from home. All business documents, including your website, business letters, and order forms, must show your company name, registered office address, company registration number, and registered country.
VAT Registration for New UK Companies in 2026: When You Must Register and What Happens If You Miss the Deadline
VAT registration is triggered by turnover, not by choice. The rules for 2026 are as follows:
| Trigger | Rule | Action Required |
|---|---|---|
| Rolling 12-month turnover exceeds £90,000 | Compulsory registration. You must notify HMRC within 30 days of the end of the month in which you crossed the threshold. | Register for VAT immediately. Your effective registration date is the first day of the second month after you crossed the threshold. |
| Turnover will exceed £90,000 in the next 30 days | Forward-look test. If you know turnover will exceed the threshold within the next 30 days, you must register immediately. | Register before the end of that 30-day period. Effective date is the day you knew you would exceed the threshold. |
| Turnover below £90,000 | Voluntary registration is available to any business below the threshold. | Consider registering voluntarily if most clients are VAT-registered businesses and you have significant VAT-able costs. |
The VAT Threshold Is a Rolling 12-Month Test, Not an Annual One
This is the most common misunderstanding about UK VAT. The £90,000 threshold is not measured at the end of your financial year or the tax year. It is assessed on a rolling basis at the end of every calendar month. You must look back at the previous 12 months at the end of each month. If the total exceeds £90,000 at any point, the registration obligation is triggered immediately. Waiting until your year-end accounts are prepared is how late registrations happen.
Once VAT-Registered: Filing and Payment Obligations
Once registered, you must file a VAT return with HMRC every three months. The deadline is one calendar month and seven days after the end of each three-month VAT period. Payment is due at the same time. All VAT-registered businesses must keep records and file returns digitally under Making Tax Digital for VAT, using compatible software.
Standard VAT Rate
20% on most goods and services. Reduced rates of 5% and 0% apply to certain categories. Check GOV.UK for a full list of VAT rates by category.
VAT Return Deadline
1 month and 7 days after the end of each quarterly VAT period. Filing and payment fall on the same date.
Late Registration Penalty
HMRC charges a percentage of the VAT owed from the date you should have registered. The minimum penalty is £50. There is no cap — late registration can become very costly.
Deregistration Threshold
You can apply to deregister if your taxable turnover falls below £88,000. Deregistration is not automatic — you must apply to HMRC.
Corporation Tax Registration for New UK Companies: What You Must Do Within Three Months of Starting to Trade
Every UK limited company must register for Corporation Tax with HMRC within three months of starting to trade. Starting to trade means the date your company begins any business activity, not necessarily the date of incorporation. If your company was incorporated but has not yet started trading, it is considered dormant for Corporation Tax purposes and you do not need to pay it, although you should notify HMRC that the company is dormant.
How to Register for Corporation Tax in 2026
- Set up a Government Gateway account and add Corporation Tax services to your business tax account using your company registration number, trading start date, and first accounting period end date.
- HMRC will send your Unique Taxpayer Reference (UTR) by post after your company is registered with Companies House. You will need this to complete Corporation Tax registration.
- HMRC will send a Corporation Tax activation code within 10 days. Use this to activate Corporation Tax services and confirm your accounting period.
Corporation Tax Rates in 2026
| Profit Level | Corporation Tax Rate | Notes |
|---|---|---|
| Up to £50,000 | 19% (small profits rate) | Applies to companies with profits below £50,000. Full rate of 19% from first pound of profit. |
| £50,001 to £250,000 | Marginal relief | Effective rate tapers between 19% and 25%. Calculated using marginal relief formula. |
| Over £250,000 | 25% (main rate) | Full main rate applies to profits above £250,000. Government has confirmed the 25% cap will remain for the duration of the current Parliament. |
Corporation Tax Filing and Payment Deadlines
There are two separate deadlines to remember for Corporation Tax, and they fall at different times:
- Corporation Tax payment is due 9 months and 1 day after the end of your accounting period. For a company with a 31 March 2026 year end, payment is due by 1 January 2027.
- Company Tax Return (CT600) must be filed with HMRC within 12 months of the end of your accounting period. For a 31 March 2026 year end, the CT600 is due by 31 March 2027.
Payment comes before filing. Many new directors are surprised to discover that Corporation Tax must be paid three months before the tax return is due. You need to calculate and pay the tax well before you file the CT600. Late payment incurs interest from the day after the payment deadline.
1Office UK prepares and files Company Tax Returns (CT600) for UK limited companies. We calculate your Corporation Tax liability, identify all allowable deductions, and submit your return to HMRC on time. We also track your payment deadline separately from your filing deadline so nothing is missed.
Let 1Office UK handle your Company Tax Return →PAYE Registration for New UK Company Directors: When You Must Register as an Employer
If you plan to pay yourself or any other director or employee a salary above £96 per week (the Lower Earnings Limit), you must register for PAYE with HMRC before the first payroll is run. PAYE is the system HMRC uses to collect Income Tax and National Insurance Contributions (NICs) from employees at source.
You must also register for PAYE regardless of salary level if any of the following apply to your employees: they have another job, they receive a pension, they receive company benefits or expenses, or they have previously claimed certain state benefits.
Even if you do not need to register for PAYE, you must still keep payroll records. If you later start paying salaries above the threshold, you will need those records to register and operate payroll correctly from the start.
Most UK limited company directors take a combination of a low salary (typically set just above or at the National Insurance threshold) and dividends. This is a common and tax-efficient approach, but it requires correct payroll setup and reporting to HMRC from day one.
The Confirmation Statement: What Every UK Limited Company Must File with Companies House Each Year
The confirmation statement is one of the most important annual filings for any UK limited company, and one of the most frequently missed by foreign-owned companies with no dedicated compliance support in the UK.
Your first confirmation statement is due within 14 days of the first anniversary of your company's incorporation. After that, you must file one every 12 months. The filing fee is £50 online.
What the Confirmation Statement Covers
- Confirmation that the company is still active and needed
- A statement that the company's intended future activities are lawful (required since March 2024)
- Details of directors, PSCs, shareholders, share capital, and Standard Industrial Classification (SIC) codes
- The company's registered email address (required since March 2024)
- Companies House personal codes for all directors and PSCs who have completed identity verification (required from the 2025/26 filing cycle)
- Confirmation that all other information Companies House holds about the company is accurate
The penalties for missing the confirmation statement are severe. Companies House can impose a £5,000 fine and initiate strike-off proceedings if the confirmation statement is not filed. A company that has been struck off the register loses its legal existence, and reinstating it is a time-consuming and costly process. There is no automated reminder from Companies House.
1Office UK files confirmation statements for UK limited companies. We track your filing deadline, compile all required information including director personal codes and your registered email address, and submit to Companies House on your behalf. You will never need to log into WebFiling or remember when it is due.
Let 1Office UK handle your confirmation statement →Annual Accounts for New UK Limited Companies: First-Year Filing Rules and Deadlines
Every UK limited company must file annual accounts with Companies House each year. For a new company, the first set of accounts can cover a period of up to 18 months from the date of incorporation, giving you more time to get your finances in order in the first year.
After the first filing, annual accounts must be filed within 9 months of the accounting reference date (your company's financial year end) each year. For a company with a 31 March year end, this means accounts are due by 31 December of the following year.
What Annual Accounts Must Include
- A balance sheet showing the company's assets, liabilities, and equity at the year end
- A profit and loss account (for most companies)
- Notes to the accounts as required by the Companies Act 2006
- A directors' report (for companies above the micro-entity threshold)
- An auditor's report (only for companies that meet the statutory audit thresholds)
Dormant Company Accounts in the First Year
If your company was incorporated but has not traded during the accounting period, you can file simplified dormant company accounts with Companies House. These are significantly simpler than full accounts and do not require a profit and loss account. You must still file them by the deadline even if there was no activity. A dormant company must also still file a Corporation Tax return or notify HMRC of its dormant status.
Compliance Obligations at a Glance: Complete First-Year Checklist for UK Limited Companies in 2026
Here is a consolidated view of everything a new UK limited company must do and when, updated for April 2026:
| When | Obligation | Filed With | Penalty for Missing |
|---|---|---|---|
| Immediately | Keep accounting records and statutory registers | Internal | Up to £3,000 fine |
| Immediately | Notify Companies House of directors and PSCs | Companies House | Criminal offence if not notified within 14 days |
| Before first payroll | Register for PAYE if paying salary above £96/week | HMRC | Penalties and interest on unpaid NIC |
| Within 30 days | Register for VAT if turnover exceeds £90,000 | HMRC | Percentage of VAT owed, minimum £50 |
| Within 3 months | Register for Corporation Tax | HMRC | Penalties and interest for late registration |
| 9 months and 1 day after year end | Pay Corporation Tax owed | HMRC | Interest from day one of late payment |
| 12 months after year end | File Company Tax Return (CT600) | HMRC | £100 immediately, rising to 20% of tax owed |
| Within 14 days of 1-year anniversary | File confirmation statement | Companies House | £5,000 fine, possible strike-off |
| Within 9 months of year end (21 months for first filing) | File annual accounts | Companies House | From £150, rising significantly with delay |
How 1Office UK Helps New UK Limited Companies Stay Compliant from Day One
For foreign founders and international business owners, managing UK compliance remotely adds a layer of complexity that most UK-based directors do not face. Different time zones, unfamiliar systems, postal correspondence from HMRC and Companies House arriving at a UK address you may never visit, and filing deadlines that no one will remind you about.
1Office UK provides a practical compliance service for foreign-owned UK limited companies that covers the obligations most likely to cause problems:
- Registered office address in the UK, so your company has a compliant, appropriate address that meets post-March 2024 Companies House rules, with all correspondence forwarded to you.
- Confirmation statement preparation and filing with Companies House each year, including identity verification codes, lawful purpose statement, and all required company information.
- Company Tax Return (CT600) preparation and filing with HMRC, including Corporation Tax calculation and payment deadline tracking.
- VAT registration with HMRC when your turnover approaches or crosses the £90,000 threshold, and ongoing VAT return preparation and filing.
- Identity verification as an ACSP for directors and PSCs who need to verify with Companies House from outside the UK.
- Companies House secretarial changes including director appointments and resignations, PSC updates, share allotments, and company name changes, all filed within the required 14-day window.
Starting a UK Company or Already Running One and Not Sure Everything Is in Order?
1Office UK helps foreign founders and international business owners stay fully compliant with Companies House and HMRC from day one. Tell us about your company and we will take it from there.
Contact 1Office UK About Your Compliance →
