So, you’ve set up your limited company with Companies House and received your UTR from HMRC.
Congratulations — now it’s time to get the foundations right.
This guide covers the key steps every new director should take from day one.
- Set Up a Dedicated Business Bank Account
Your company is a separate legal entity — its money must be kept separate from yours.
- Use one designated business bank account for all income and expenses
- This makes bookkeeping, VAT (if applicable), and accounts far simpler
- We commonly recommend Revolut, Starling or Monzo, but other banks are available
Mixing personal and company money causes problems later — avoid it from the start.
- Record All Income and Expenses
From the first transaction onwards, record everything.
- Log all income received
- Record every expense, even if you’re unsure whether it’s allowable
- Don’t rely on bank statements alone
If it’s not recorded, it can’t be claimed or explained later.
- Use Accounting Software
Good software saves time and reduces errors.
- Software keeps records organised and compliant
- Common options include Xero and FreeAgent
- The “best” software depends on how your business operates
Let us recommend the right solution for your business and set it up correctly.
- Allowable Expenses – Common Examples
Your company can usually claim expenses that are wholly and exclusively for business purposes.
Typical examples include:
- Office costs and stationery
- Software and subscriptions
- Business insurance
- Marketing and advertising
- Professional fees (accountancy, legal)
- Telephone and internet (business proportion)
- Training directly related to your role or business
- Business travel costs
Personal expenses and non-business costs are generally not allowable.
Unsure? Record it and ask us.
- Using Your Own Car for Business (Mileage)
If you use your personal car for company business, you can usually claim mileage.
- 45p per mile for the first 10,000 business miles
- 25p per mile thereafter
- Covers fuel, insurance, servicing, and wear and tear
You must keep a mileage log showing:
- Date
- Journey details
- Business purpose
- Miles travelled
Home-to-work travel is usually not allowable.
- How Will You Pay Yourself?
One of the most important decisions as a director.
- Money can be taken as salary, dividends, or a combination
- The most tax-efficient method depends on profits and personal circumstances
- Taking money incorrectly can result in unexpected tax bills
Always speak to us before taking money out of the company.
- Keep an Eye on Your Turnover
Turnover can grow faster than expected.
- Monitor your rolling 12-month turnover
- Once taxable turnover exceeds £90,000, VAT registration is usually required unless exempt
- Timing matters — late registration can be costly
Talk to us early if turnover starts increasing.
- Speak to Us
Good advice at the start prevents problems later.
If you’re unsure, ask. If you’re growing, tell us. If something’s changed, speak to us.