What are the ongoing compliance requirements after setting up my business?

Setting up your business was just the beginning – now comes the ongoing responsibility of keeping it compliant. You’re not alone if you feel overwhelmed by compliance requirements for your business. The good news is that staying compliant doesn’t have to be a source of stress when you understand what’s required and plan ahead.

Tax obligations and deadlines

Your tax obligations depend on your business structure, but all businesses need to stay on top of various deadlines throughout the year.

Corporation tax (for limited companies)

Limited companies must file their corporation tax return (CT600) and pay any tax due within 9 months and 1 day of their accounting year-end. If your company year-end is 31st March, your corporation tax is due by 1st January the following year. Companies with profits over £1.5 million must make quarterly payments on account, effectively paying tax in advance based on the previous year’s liability.

Self-Assessment (for sole traders and directors)

Sole traders and company directors taking dividends or benefits must complete annual Self-Assessment returns by 31st January following the tax year-end. If you owe more than £1,000 in tax, you’ll also need to make payments on account: half due on 31st January and half on 31st July. Many of our clients find these July payments catch them off guard, so it’s crucial to budget for them throughout the year. From April 2026, if you earn over £50,000 as a sole trader or landlord, you’ll be required to comply with Making Tax Digital rules.

VAT compliance

If your taxable turnover exceeds £90,000, you must register for VAT and submit quarterly returns. Even if you’re below the threshold, you might choose to register voluntarily if most of your customers are VAT-registered businesses. VAT returns are due one month and seven days after the end of each quarter, and with Making Tax Digital requirements, you’ll need compatible software to submit your returns.

Creating a compliance calendar with all your key dates marked is one of the best investments you can make in your business’s future. We help our clients set up automated reminders so they’re never caught off guard by approaching deadlines.

Companies House filing requirements

Limited companies have ongoing obligations to Companies House that many new business owners overlook.

Annual confirmation statement

Every company must file a confirmation statement each year, confirming or updating key company information including directors, shareholders, registered office address, and people with significant control (PSCs). This must be filed within 14 days of the anniversary of your company’s incorporation. The current fee is £34 if filed online (£62 by post). Late filing can lead to serious consequences for directors including fines of up to £5,000 and your company can be struck off.

Annual accounts

Private limited companies must file their annual accounts within 9 months of their accounting year-end. The accounts you file depend on your company size – micro companies can file simplified accounts, while larger companies need more detailed submissions. As with other compliance requirements, missing deadlines can lead to substantial fines and penalties.

Change notifications

Companies House must be notified of certain changes within 14 days, including director appointments or resignations, changes to the registered office address, alterations to share capital, and updates to people with significant control. These notifications often carry small fees, but the penalties for late notification can be much more substantial.

The key is treating these as routine business admin rather than once-a-year headaches. Setting up annual reminders and keeping your company information up to date throughout the year makes the process much smoother.

PAYE and National Insurance obligations

If you employ staff or pay yourself a salary as a company director, you’ll need to operate PAYE (Pay As You Earn) and handle National Insurance contributions.

When PAYE applies

You must register for PAYE if you employ anyone earning over £96 per week, including yourself as a company director. This applies even if you only pay yourself a small salary to maintain your National Insurance record. You’ll also need to consider PAYE for subcontractors if they don’t meet the off-payroll working rules (IR35).

Monthly or quarterly submissions

Most employers must submit Real Time Information (RTI) returns to HMRC every time they pay employees and make payments by the 22nd of the following month (or 19th if paying by cheque). Smaller employers can sometimes qualify for quarterly reporting. At year-end, you’ll need to provide P60s to employees and submit P11D forms for any benefits or expenses.

PAYE can seem daunting initially, but modern payroll software handles most of the calculations automatically. The important thing is ensuring you register before your first payment and maintain accurate records of all salary and benefit payments.

Industry-specific compliance requirements

Beyond the standard tax and company law requirements, your business might have additional compliance obligations depending on your sector.

Many professional services require ongoing licensing or membership with regulatory bodies.

If you handle personal data, you’ll need to comply with GDPR requirements, including potential registration with the Information Commissioner’s Office. Businesses involving food, healthcare, construction, or financial services often have specific regulatory requirements and regular inspection schedules.

Don’t assume that general business compliance covers everything. Take time to research your industry’s specific requirements and factor any ongoing costs into your business planning.

Record keeping requirements

Proper record keeping underpins all your compliance obligations and can save you significant time and stress when deadlines approach.

Essential records to maintain

You must keep detailed financial records including all income and expenditure, bank statements, receipts for business expenses, and records of any business assets. Tax records must be kept for at least six years, while employment records should be retained for three years after employment ends, per HMRC’s record keeping guidance. Companies must also maintain statutory books recording directors, shareholders, and company decisions.

Digital record keeping advantages

Cloud-based accounting software has transformed record keeping for small businesses. Systems like Xero, QuickBooks, and FreeAgent automatically categorise transactions, generate reports, and integrate with Making Tax Digital requirements. A local florist told us that switching to digital records saved her hours each month and gave her real-time visibility of her business finances.

Regular monthly reconciliations and organised filing systems – whether digital or physical – make compliance much more manageable. The time you invest in good record keeping pays dividends when you need to respond to HMRC enquiries or prepare your annual accounts.

Planning and staying organised

The secret to stress-free compliance is turning reactive scrambling into proactive planning.

Your compliance calendar

Create a master calendar showing all your compliance deadlines throughout the year. Include buffer time before each deadline for preparation and review. Mark quarterly VAT returns, annual filing dates, and tax payment deadlines. Share this calendar with your accountant so they can support you in meeting your obligations.

Professional support

While you can handle many compliance requirements yourself, professional support often proves cost-effective. We regularly help clients avoid penalties that would cost far more than our fees, and proactive advice often identifies tax-saving opportunities that more than pay for professional services.

Watch for red flags like cash flow problems affecting your ability to pay taxes on time, missing any deadlines (however small), or finding your record keeping falling behind. These early warning signs are much easier to address before they become major compliance issues.

Getting help with your compliance obligations

At Adams Accountancy, we specialise in making compliance simple and stress-free for businesses across Kent. Our friendly team can help you establish systems that keep you compliant while giving you more time to focus on growing your business.

Contact us today for a free, no-obligation chat about your compliance requirements. Whether you need help setting up systems, catching up on overdue filings, or just want peace of mind that you’re meeting all your obligations, we’re here to help.

Frequently asked questions about ongoing business compliance

How often do I need to file returns after setting up my business?

This depends on your business structure and circumstances. Limited companies must file annual confirmation statements and accounts with Companies House, plus corporation tax returns with HMRC. Sole traders file annual Self-Assessment returns by 31st January. If you’re VAT-registered, you’ll file quarterly VAT returns. Businesses with employees must submit PAYE information monthly or quarterly. The frequency can feel overwhelming initially, but establishing a routine makes it much more manageable.

What happens if I miss a compliance deadline?

Missing deadlines results in automatic penalties and interest charges that can quickly escalate. HMRC imposes minimum £100 penalties for late Self-Assessment returns, with additional daily penalties after three months. Late corporation tax payments incur interest from the due date. We’ve seen clients face thousands in penalties for missing deadlines, which is why we always recommend setting up reminder systems well in advance.

Do I need to keep physical copies of all business documents?

No, digital records are perfectly acceptable for compliance purposes, provided they’re legible, complete, and securely stored with proper backups. HMRC and Companies House accept electronic records, and cloud-based storage often provides better security and accessibility than physical filing. However, some original documents like property deeds or important contracts might need physical copies for legal reasons. The key is ensuring your digital records are properly organised and regularly backed up.

How long must I keep business records for compliance purposes?

Most business and tax records must be kept for at least six years from the end of the company financial year they relate to. This includes sales and purchase records, bank statements, receipts, and correspondence with HMRC. Employment records should be kept for three years after employment ends, while VAT records must be retained for six years. Some industry-specific records may have different retention periods, so it’s worth checking requirements for your particular sector.

Can I handle all compliance requirements myself or do I need professional help?

While it’s legally possible to handle compliance yourself, professional help often proves cost-effective, particularly as your business grows. Simple compliance tasks like filing confirmation statements are straightforward, but complex areas like corporation tax calculations, PAYE setup, and VAT planning benefit significantly from expert guidance and require specialised software. Many of our clients initially tried to handle everything themselves but found that professional support actually saved them time and money while reducing stress and the risk of costly errors.

What’s the difference between Companies House and HMRC compliance requirements?

Companies House and HMRC serve different regulatory functions with separate requirements. Companies House regulates company law compliance, including annual confirmation statements, filing accounts, and notifying changes to company structure or directors. HMRC handles all tax-related compliance including corporation tax, VAT, PAYE, and Self-Assessment. Both have their own deadlines, fees, and penalty systems. Companies must comply with both sets of requirements – they’re complementary obligations, not alternatives to each other.