New businesses and registering for tax

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

Business must consider both their one-off compliance obligations when the business commences, and their ongoing requirements. The extent of a business’s tax compliance obligations depends on many factors, including:

•
the type of entity
•
the size of the business
•
how many employees (if any)
•
in some circumstances, the type of work undertaken, eg construction
•
the type of assets in the business
•
existence of any share reward schemes

This guidance note summarises the main tax compliance obligations for new businesses. For checklists of compliance requirements which can be used at client visits, see the Starting the business ― overview guidance note.

Self assessment and NIC for self-employed individuals

A sole trader must notify HMRC that they have started in business, as soon as the business commences, at File your Self Assessment tax return online.

Self-employed businesses and landlords with annual business or property turnover above £50,000 will need to follow the rules for Making Tax Digital for income tax (MTD ITSA) from 6 April 2026, as announced on 19

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New businesses and registering for tax

New businesses and registering for tax