Finance Setup for a New UK Limited Company 6 Things You Need in 2026

Finance Setup for a New UK Limited Company: 6 Things You Need in 2026

Setting up a limited company only takes a short online application. The finance and admin that follow are a different matter, a big step up from life as a sole trader or a side project. The company exists as a separate legal entity, with money, tax obligations and Companies House and HMRC filing deadlines all of its own. Directors also carry legal duties, and if company and personal finances are mixed, the tax problems that result can take time and money to unpick.

It is easiest to get the setup right during the first few months, before transactions mount and habits form. The six things covered here are what every new UK limited company needs in its finance setup, and the first is the accounting software that sits at the centre of it all.

1. Sage Accounting: Bookkeeping, Invoices, VAT and Payroll Under One Roof

From the first day, a new company has a proper set of books in Sage Accounting. Transactions flow in automatically once you connect your business bank account, and automatic bank reconciliation matches each one against your records. Sales invoices can be created and sent, amounts owed tracked and online payment offered to customers through GoCardless and Stripe.

With every stage of growth, Sage Accounting grows with the company. Registering for VAT means it can calculate and submit your VAT returns and keep you Making Tax Digital ready, allowing VAT returns to be submitted to HMRC from your digital records without anyone re-entering the figures manually. With Sage Payroll and essential HR features integrating with Sage Accounting, managing payroll alongside your accounting records is straightforward, and Sage Copilot assists with routine admin and points out trends in your figures.

2. NEST: Setting Up Workplace Pensions

Bringing on your first employee creates new duties, and workplace pension auto-enrolment is among them. NEST, the government-backed workplace pension scheme set up to support auto-enrolment, takes any employer whatever its size, which is why it is a common choice for new companies.

Auto-enrolment duties usually do not apply to a company whose only staff are directors without employment contracts, but do not assume every director is exempt; check The Pensions Regulator's guidance. Getting a scheme set up before the first payday keeps you on the right side of The Pensions Regulator from the start.

3. Hiscox: Business Insurance Bought and Managed Online

Limited company status keeps your personal assets safe from many business debts, but claims against the company itself are not covered by it. Hiscox offers business insurance to small UK companies, including professional indemnity, public liability and employers' liability cover, with policies that can be purchased and managed online.

Employers' liability insurance is a legal requirement for most companies after they take on staff, and plenty of clients will request proof of professional indemnity or public liability cover before signing a contract. If the right policies are in place early, your first big opportunity is not delayed.

4. Stripe: Card Payments Online for New Companies

Getting paid quickly is important while a new company builds up its cash reserves. Stripe gives you the ability to accept card payments online, through payment links, on your website or for recurring services, with the funds paid into your business bank account.

Strong Customer Authentication is handled by Stripe, and it supports payments in many currencies, which is useful when early customers are overseas. Clear reporting on every payment and fee makes each payout easier to match in your accounts.

5. Inform Direct: Statutory Records Kept Up to Date

Statutory registers are a requirement for every limited company, including registers of members, directors and people with significant control, as is keeping Companies House up to date whenever there is a change. Inform Direct is company secretarial software that stores these records in one place and lets you file changes and confirmation statements online with Companies House.

Reminders of upcoming deadlines help make sure nothing is filed late. Company records organised from the outset make it far easier to bring in investors, add shareholders or issue new shares further down the line.

6. Pleo: Company Cards and Easier Expenses

Using a personal card to pay for company costs, then losing track of what is owed back, ranks among the most common problems for new directors. Pleo issues company cards, both physical and virtual, so business spending comes straight from the company's money instead of yours.

You capture receipts on your phone at the point of purchase, and spending limits can be applied to each card as you add team members. Separating company and personal spending from the start also avoids confusion over your director's loan account.

Important Deadlines in the First Two Years

A new company has deadlines falling at various points, so it helps to know what is on the way.

Within three months of starting to do business: Register your company with HMRC for Corporation Tax.

Before your first payday: If you will run payroll for yourself or employees and that payroll meets HMRC's registration criteria, register as an employer for PAYE.

12 months after incorporation: The period for your first confirmation statement closes, and you have 14 days to get it filed with Companies House.

21 months after incorporation: This is the deadline for filing your first set of accounts with Companies House.

Nine months and one day after your accounting period ends: Pay whatever Corporation Tax is due. The Company Tax Return itself follows, due 12 months after the period ends.

FAQs

Will Sage Accounting let me run payroll for myself as a director?

Yes. You can use Sage Payroll alongside Sage Accounting to pay yourself and your first employees from the same system that holds your books. The right salary and dividend balance depends on your circumstances, so it is worth agreeing it with your accountant.

Is a separate company card truly needed?

It makes life much easier. Paying company costs from company funds keeps your records clean, and it stops small amounts building up on your director's loan account that your accountant would otherwise need to unpick.

Where is a good place to hold our statutory registers?

A secure place that is easy to update whenever something changes, a new director or shareholder for example. Company secretarial software stores the registers alongside your filing history and gives reminders of upcoming deadlines.

How soon should VAT be set up in our accounting software?

Straight after you register for VAT, whether that registration was voluntary or prompted by taxable turnover passing the threshold. Your records can then be used by Sage Accounting to calculate and submit VAT returns under Making Tax Digital.