Startups & small businesses

Accountants for UK startups and small businesses

As an accounting partner for UK startups and SMEs, we offer a range of financial services. Our expert advisory, bookkeeping, tax filing, and other accounting services cover a wide range of industries. We also enable limited companies to use cloud-based technology to manage their finances and plan for the future with confidence. Our easy integration and hands-on support make switching accounts with us simple and stress-free.

Why do startups and SMEs need specialist accounting in the MTD era?

The way many businesses report their taxes in the UK is gradually changing as part of the Making Tax Digital (MTD) programme introduced by HM Revenue & Customs. From April 2026, Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will apply to self-employed individuals and landlords with annual business or property income above £50,000. Under this system, affected taxpayers must keep digital records and submit quarterly submissions followed by an end-of-year declaration using compatible accounting software.

For many startups, sole traders and growing small businesses, this represents a shift away from annual tax reporting towards more regular digital record-keeping and submissions. Working with an accountant who understands the new digital requirements can help ensure your records and reporting processes remain accurate and compliant.

Does MTD make accounting an all-year-round practice?

For many sole traders who previously reviewed their finances only once a year, MTD encourages more regular record-keeping throughout the year. Maintaining accurate digital records of income and expenses is imperative to ensure quarterly updates are prepared correctly and submitted on time.

For startups and small businesses, managing accounting alongside day-to-day business activities can be challenging. Many owners are focused on growth, operations, funding and customer relationships, which is why having professional accounting support can help keep financial records organised and compliant.

How will a specialist accounting service help my business stay compliant?

A specialist accounting service from an ICAEW‑recognised practice like Abbott & Brown helps startups and small businesses stay compliant with MTD (for sole traders and landlords) and wider HMRC requirements by providing the right software support for bookkeeping, payroll, VAT filing, maintaining statutory accounts, credit control and more. In addition to compliance, professional oversight of your financial data can help improve cash flow management, support better‑informed decisions, and ensure your tax affairs are handled efficiently in line with current rules.

What accounting services can you help my business with?

Our services cover your business's financial reporting and account management needs. These services include:

Bookkeeping

Tracking all financial records and providing expert guidance on how to code and maintain them

Support with setting up and using cloud‑based accounting software

Ensuring timely VAT submissions to HMRC and updating payroll journals

Monitoring payments and checking sales and purchase invoices

Quarterly VAT return

One-time VAT registration with HMRC

Timely filings and submission of VAT returns

Advice on VAT savings and choosing the right scheme

Following MTD compliance guidelines and support with VAT enquiries

Filing of P11D returns

Recording and reporting taxable benefits provided to employees, ensuring all relevant benefits and expenses are captured accurately.

Preparing and submitting P11D forms and associated Class 1A NIC information to HMRC correctly and on time, reducing the risk of penalties or enquiries.

Reviewing benefit structures and reimbursement policies so items are treated correctly for tax and NIC purposes.

Maintaining clear records and documentation to support the figures reported, making HMRC compliance checks easier to manage.

Monthly payroll support

Producing monthly payslips for every employee

Calculating and filing PAYE submissions by the required deadlines

Ongoing support with monthly payroll processing and RTI submissions

Finalising year end payroll and producing annual P60 forms to employees

Year‑end accounting and corporation tax (CT600)

Preparing statutory year‑end accounts for your limited company.

Gathering the relevant information and preparing the company tax return (CT600) for online filing with HMRC, including detailed computations and supporting schedules.

Ensuring figures are accurate and submitted on time so corporation tax is calculated correctly under current legislation, helping you avoid late filing penalties and interest.

Reconciling your accounting records to HMRC submissions, bank accounts and payroll so everything ties together and stands up to scrutiny in the event of an HMRC enquiry.

FAQs

It is not mandatory for startups and small businesses in the UK to hire an accountant. However, a professional accountant like Abbott & Brown can help save time and avoid mistakes that arise from the complex tax filing process. Also, a professional service helps businesses comply with all HMRC and Companies House rules when they file and submit their returns.

The cost of accounting services for a small business or startup may vary depending on its size and the scope of work. While basic services like maintaining annual accounts and completing tax returns might cost between £50 and £150 a month, comprehensive services, including bookkeeping, payroll, VAT, and tax advice, can cost between £150 and more than £400 a month.

Yes, we are an ICAEW-certified professional accounting service. We help businesses file their returns, including corporation tax, VAT, PAYE, and self-assessments, in compliance with the latest HMRC laws and standards. Our services also comply with the latest MTD rules from HMRC.

A UK‑registered limited company must keep accurate financial and statutory records that meet the requirements of both HMRC and Companies House. These typically include records of all income and expenses, sales and purchase invoices, payroll records, bank statements, and details of assets and liabilities; if the company is registered for VAT, it must also keep full VAT records and digital records where MTD applies. The company must also maintain core company records such as details of shareholders, directors, key decisions and resolutions, and any loans or charges over company assets.

Always check for industry accreditations, such as ICAEW or ACCA, when hiring an accountant for your new limited company. You should also ensure they have experience working with other startups or SMEs in your sector and understand current HMRC rules and MTD requirements. A good accountant will be able to explain your obligations clearly, help you set up robust bookkeeping and reporting processes from day one, and communicate in a way that is proactive, transparent and easy to understand.