Registering a limited company is an important milestone, but incorporation is only the beginning. The choices you make during the first few months determine whether your accounts remain straightforward or become an expensive clean-up exercise later.

This new limited company accounting checklist explains the practical steps UK directors should consider during their first 90 days. Not every item will apply to every company, but working through the list gives you a reliable financial foundation.

1. Separate company and personal money

A limited company is legally separate from its directors and shareholders. Treating its money as though it were your personal bank balance creates avoidable bookkeeping, tax and director’s-loan problems.

If you personally pay a genuine company expense, keep the receipt and record the reimbursement properly. Money withdrawn that is not salary, a dividend, an expense reimbursement or repayment of money owed to you may form part of a director’s loan account.

2. Create a bookkeeping routine before activity builds up

Good bookkeeping is not simply data entry for the year-end accountant. It helps you see what customers owe, what the business is spending, how much cash is available and whether money should be reserved for tax.

Choose suitable accounting software or a structured record-keeping system, connect the business bank account where appropriate and decide who will reconcile it. A monthly routine is usually easier than reconstructing a year of activity from statements and emails.

Keep sales invoices, purchase invoices, receipts, bank statements, contracts, payroll records and evidence supporting business expenses. GOV.UK provides an overview of the company and accounting records directors must keep.

3. Tell HMRC when the company starts trading

Incorporating a company and starting to trade are not always the same event. A newly registered company might remain dormant while the founders prepare to launch. Once it begins business activity, its Corporation Tax position needs to be dealt with correctly.

Record the actual date trading begins. That date can affect the company’s first Corporation Tax accounting period and its deadlines. Do not assume that every date will be exactly one year after incorporation.

Important: first accounts can cover more than 12 months, but a Corporation Tax accounting period cannot. A long first set of accounts can therefore require two Company Tax Returns and two tax-payment calculations.

4. Decide how directors will be paid

Money can leave a company in different ways, and the bookkeeping and tax treatment depends on what the payment represents.

Our guide to paying yourself from a limited company explains these routes in more detail.

5. Check whether PAYE registration is required

If the company will pay a director or employee, review whether it needs to register as an employer and operate PAYE. Payroll is not simply an annual calculation: most employers must report payments to HMRC on or before payday through Real Time Information.

Agree the payroll frequency, collect employee details and establish who will submit reports. Director-only payroll still needs to be operated correctly where PAYE registration is required.

6. Monitor VAT rather than waiting until year end

VAT registration is compulsory when the relevant tests are met. At the time of writing, the general taxable-turnover threshold is £90,000. A business normally needs to consider both turnover over the previous 12 months and whether it expects to exceed the threshold in the next 30 days. Check the latest GOV.UK VAT registration guidance, as thresholds and rules can change.

Some businesses register voluntarily below the threshold, but that decision should consider customers, pricing, costs and administration. Businesses selling internationally or operating in specialist sectors may face additional rules.

7. Put every first-year deadline in a calendar

A limited company can have several separate deadlines:

See our complete first-year limited company accounting deadlines guide. Record each actual date rather than relying on a generic reminder.

8. Build a simple tax reserve

Money in the bank is not automatically available to spend. Some may be needed for Corporation Tax, VAT, PAYE, suppliers or refunds. A separate savings account or clearly tracked reserve can reduce the risk of reaching a deadline without the cash required.

Update a short cash-flow forecast using realistic collection dates and expected costs. Even a simple 13-week view can expose a shortage early enough to act.

9. Review insurance, registrations and responsibilities

Accounting is part of the company’s wider compliance. Depending on its activities, review business insurance, licences, data-protection obligations, pension duties, contracts and sector-specific registrations. Keep the registered office, service addresses, directors, people with significant control and SIC codes accurate.

10. Decide what to handle yourself—and what to outsource

Some founders enjoy managing their own software. Others want bookkeeping and compliance handled so they can focus on customers. Either approach can work when responsibilities and deadlines are clear.

When comparing support, look beyond the annual filing fee. Ask who will keep records current, monitor VAT, run payroll, answer questions and identify problems before year end. Our guide to limited company accountant costs in the UK explains what affects pricing.

Your first-90-days action plan

  1. Open and use the company bank account.
  2. Set up bookkeeping and document storage.
  3. Record the trading start date.
  4. Review PAYE and VAT requirements.
  5. Agree how directors will be paid.
  6. Record every statutory and tax deadline.
  7. Create a tax and cash reserve.
  8. Arrange help before the records become difficult to repair.

This article provides general information, not personalised accounting or tax advice. Your deadlines and obligations depend on your company’s circumstances and current legislation.