Start a Business in the UKStructure, Banking, Visas, Taxes
The UK has ~6 million businesses and over 5 million self-employed workers. This 6-section path gets you started—from choosing between sole trader and LTD to banking, VAT and support resources for Italians.
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This guide covers key choices: legal form (sole trader vs LTD), HMRC/Companies House registrations, opening a business account, visas for non-UK status, baseline taxes and support resources (accelerators, advisors, communities).
1) Choose Your Legal Structure
The most common options: sole trader and private limited company (LTD).
| Aspect | Sole Trader | LTD (Limited Company) |
|---|---|---|
| Liability | Unlimited | Limited to share capital |
| Tax | Income Tax + NI on personal profits | Corporation Tax on company profits |
| Admin | Lean (simpler bookkeeping) | Accounts, registers, filings |
| External perception | Freelance/consultancy | More ‘corporate’/B2B contracts |
2) Initial Registrations
Sole trader
- Register for Self Assessment with HMRC and get a UTR.
- Open a dedicated account (recommended) and track income/expenses.
- Consider VAT registration if above the threshold or voluntarily.
Limited Company (LTD)
- Incorporate via Companies House (name, SIC, articles, shareholders/PSC).
- Register with HMRC for Corporation Tax.
- Assess VAT and PAYE if hiring or paying salary.
3) Business Bank Account & Tools
- Open a business account (KYC: personal & company docs).
- Bookkeeping software (e.g., Xero, QuickBooks) for invoices, expenses & VAT.
- Payments: online gateways, POS, invoicing with sequential numbering.
4) Visas & Right to Work
If you lack UK status, consider routes such as Skilled Worker (sponsorship), Innovator Founder (innovative startup), Global Talent, or Graduate. Self-employment requires the right to work.
5) Taxes: The Basics
- Income Tax & National Insurance (sole trader): you pay on personal profit.
- Corporation Tax (LTD): paid by the company on profits.
- VAT: register if over the current threshold; consider simplified schemes if eligible.
- Payroll (PAYE): if you hire or pay salaries, manage payroll and contributions.
- Deadlines: set a calendar (VAT returns, Self Assessment, CT600, accounts filings).
6) Opportunities & Resources for Italians
- Networks: Chambers of Commerce, Italian Cultural Institute, Italian professional groups in the UK.
- Advisors: bilingual accountants, immigration advisors, mentors and accelerators.
- Growing niches: specialist B2B services, quality food, design, software & consulting.
Important note
This is guidance only and not legal or tax advice. Always check the latest GOV.UK/HMRC/Companies House guidance and consult a professional if needed.
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