🇬🇧 Annual Compliance — United Kingdom

Failing to register for Corporation Tax within three months of starting business activity

Fix: Register with HMRC as soon as the company begins trading. Late registration can result in penalties and interest charges on unpaid tax.

Not filing the annual Confirmation Statement or accounts on time with Companies House

Fix: Set calendar reminders well ahead of the filing deadlines. The Confirmation Statement is due at least once every 12 months, and accounts must be filed within 9 months of the accounting period end. Late filing incurs automatic penalties starting at £150 and rising to £1,500.

Using a personal bank account for business transactions instead of opening a dedicated business account

Fix: Open a business bank account before the company begins trading. Mixing personal and business finances complicates accounting, may breach banking terms, and can undermine the limited liability protection.

Ignoring VAT registration obligations when turnover approaches the threshold

Fix: Monitor rolling 12-month turnover and register for VAT before exceeding the £90,000 threshold. Late registration means HMRC can backdate the registration and charge VAT on sales that should have included it, creating a cost the business must absorb.