Lawyer
An expert in corporate and international corporate law. He has many years of experience in establishing and reorganizing companies, supporting M&A transactions, as well as providing legal support for opening and running a business in the EU, Asia, and North America.
ACCOUNTING SUPPORT FOR A BUSINESS (FIRM) IN THE UK
Accounting support — This is a set of services aimed at accounting, preparation of financial statements, tax calculation and compliance with legislation.
It is in the UK that the importance for business lies in the following:
- tax management — the UK has a complex tax system (corporation tax, VAT, PAYE), and mistakes can lead to fines;
- financial transparency — well-maintained records help make informed business decisions;
- compliance with the law — under the Companies Act 2006, limited liability companies (Ltd) are required to keep accounting records and file returns;
- investment attractiveness — transparent reporting increases investor confidence.
The main laws and regulations governing are:
- Companies Act 2006: Regulates corporate governance, reporting of Ltd companies.
- Finance Act 2025 (FA 2025): Updates tax rates and reporting requirements.
- Corporation Tax Act 2010 (CTA 2010): Regulates corporate tax.
- Value Added Tax Act 1994 (VATA 1994): Regulates VAT.
- Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003): Regulates income tax (PAYE).
- FRS 102/105: Financial reporting standards for small and medium-sized companies.
- HMRC Regulations: Rules set by the UK Revenue and Customs (HMRC).
- Employment Rights Act 1996: Labor law, including wage regulations.
- Data Protection Act 2018/GDPR: Regulates data protection, important for processing employee information.
Types of business structures in the UK and their accounting features
- Sole Trader (Individual entrepreneur)
Features:
- You do not need to register a business, but you must file a Self Assessment tax return.
- Responsibility for debts is personal.
Accounting requirements:
- Keeping records of income and expenses.
- Submitting the Self Assessment by January 31 of the year following the reporting year.
- Partnership
Features:
- Two or more participants.
- Responsibility is shared.
Accounting requirements:
- Joint accounting of income/expenses.
- Filing of Partnership Tax Return by January 31.
- Limited Company
Features:
- A legal entity, liability limited to the authorized capital.
- Registration with Companies House is required.
Accounting requirements:
- Maintaining complete accounting records.
- Filing Annual Financial Statements with Companies House.
- Filing a Company Tax Return to HMRC.
- Limited Liability Partnership (LLP)
Features:
- Hybrid of partnership and Ltd: members have limited liability.
Accounting requirements:
- Similar to Ltd, but with separate reporting forms.
Main aspects of accounting support
Bookkeeping
Accounting involves recording income, expenses, receivables and payables using specialized software such as QuickBooks, Xero and Sage, ensuring accuracy and efficiency of processes.
In 2025, the key requirements are:
- Making Tax Digital (MTD) —mandatory digital filing of tax returns for all businesses (previously the requirement only applied to VAT payers with an annual income of over £85,000)
- E-invoicing —mandatory submission of invoices in digital format for B2B transactions, which contributes to process automation and error reduction
Preparation of financial statements
Accounting support in the UK involves the preparation of basic financial documents for limited liability companies (Ltd), including:
- Balance Sheet, which reflects assets, liabilities and equity.
- Profit and Loss Account, which shows revenues, expenses, and net profit.
- Cash Flow Statement.
- Notes to the Financial Statements.
In 2025, reporting standards remain differentiated: simplified reporting is provided for small companies (according to FRS 105 criteria), while large companies are required to submit a full set of reports according to FRS 102.
Calculation and payment of taxes
Corporation Tax
In 2025, rates corporate tax rates are set as follows:
- base rate 25%for companies with a turnover of over £250,000;
- small rate (Small Profits Rate) 19%for profits up to £50,000;
- Marginal Relief for profits in the range of £50,001–£250,000.
The Company Tax Return (form CT600) is due within 12 months of the end of the financial year. Companies with a turnover of over £1.5 million are required to make 9 installment payments per year.
VAT (Value Added Tax)
In 2025, the following VAT rates apply:
- standard 20% for most goods and services;
- reduced by 5% (for example, for energy carriers);
- 0% for certain categories of goods (food, books).
The VAT Return (VAT 100 form) is filed quarterly or monthly. From 2025, filing via digital systems will become mandatory as part of the Making Tax Digital (MTD) initiative.
Income tax (PAYE)
Accounting support includes deducting income tax (PAYE) from employee salaries and paying it to HMRC.
In 2025, the requirements are updated: mandatory online filing via the HMRC portal and compliance with new payroll rules, including changes to National Insurance Contributions (NIC).
Reporting at Companies House
For limited liability companies (Ltd), it is mandatory to submit an annual confirmation report (Confirmation Statement) to Companies House, which contains up-to-date information about the company (directors’ details, address).
It is also necessary to submit annual financial statements (Annual Financial Statements) within 9 months after the close of the financial year (for small companies).
Accounting for Sole Trader and Partnership
Sole Traders and Partnerships are required to file a Self Assessment Tax Return, which includes business income, expenses and personal income.
The declaration is submitted by January 31 of the year following the reporting year.
Calculate the cost of services
1 question
Are you currently in Ukraine?
2 question
Are you currently in UK?
3 question
Do you need company registration in UK?
4 question
Do you only need accounting advice?
5 question
Do you need full accounting support for your business in UK?
6 question
Does your business have a turnover of more than EUR 500,000 per month?
7 question
Do you want to buy an existing business in UK?
8 question
Do you need advice on UK taxes?
9 question
Do you need to open a bank account in UK?
10 question
Do you need a rental address for your company or a virtual office in UK?
11 question
Do you need legal support for a business (firm) in UK?
12 question
Do you need a legal audit or business due diligence in UK?
13 question
Do you need marketing support for a business (firm) in UK?
14 question
Do you need business logistics (transportation services) to UK?
15 question
Do you need a business loan in UK?
16 question
Do you need a consultation urgently?
You may also need:
Opening a crypto-friendly account
Read moreBrand name registration
Read moreCompany Registration in the UAE
Read moreBANK REGISTRATION IN CYPRUS
Read moreOPENING A BANK ACCOUNT IN ESTONIA
Read moreOpening an account in a foreign bank
Read moreCompany Registration in Austria
Read moreREGISTRATION OF A BUSINESS (FIRM) IN POLAND
Read moreREGISTRATION OF A BUSINESS (FIRM) IN THE UK
Read moreOPENING A BANK ACCOUNT FOR A GAMBLING BUSINESS
Read moreREGISTRATION OF A BUSINESS (FIRM) IN THE CZECH REPUBLIC
Read moreOPENING A BANK ACCOUNT IN AUSTRIA
Read morecall back
during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)

