Starting a business from SW6
Plenty of new businesses begin at a kitchen table in Fulham. Founders here range from people who have left a corporate job to build a software product, to someone launching a food brand, a fitness studio or a consumer app. Some work from home, some from shared workspaces nearby, and some move into an office in Hammersmith, White City or Chelsea once the team grows.
Whatever you are building, the early decisions matter more than most founders realise. How you set up the company, split the shares and record the first money in all affect what happens later when you raise investment or sell. Our ACCA qualified accountants help you get these foundations right from the start.
Setting up your company
Most startups that plan to raise money form a private limited company. You register it at Companies House, choose your directors and shareholders, and agree a share structure. Directors and people with significant control now need to verify their identity with Companies House, so allow time for that.
If there are co founders, think carefully about how shares are divided and what happens if someone leaves early. A shareholders agreement and sensible share terms can prevent painful arguments. We also register your company for corporation tax, help you open a business bank account and set up cloud bookkeeping so your records are clean from the first transaction.
Do not rush VAT either. If you sell mostly to businesses, registering early can let you reclaim VAT on setup costs such as equipment and software. If your customers are the public, registering before you must can make you more expensive than competitors. We talk it through before you decide.
- Company registration and share structure
- Corporation tax and PAYE registration
- Cloud bookkeeping setup
- VAT advice from the start
What is included
- Limited company formation and share setup
- SEIS and EIS advance assurance applications
- SEIS and EIS compliance forms for investors
- Bookkeeping in cloud software
- Management accounts and cash flow forecasts
- Year end accounts and corporation tax
- R&D tax relief eligibility checks
- Payroll and workplace pension setup
SEIS and EIS in plain words
SEIS and EIS are government schemes that give investors tax relief when they buy new shares in a small, growing company. SEIS, the Seed Enterprise Investment Scheme, is for very early companies and gives investors income tax relief of 50% of what they invest. EIS, the Enterprise Investment Scheme, is for companies a little further along and gives 30%. Gains on the shares can also be free of capital gains tax if conditions are met and the shares are held for at least three years.
For many angel investors, these reliefs are a key reason to back a startup. The schemes have strict rules about the age and size of your company, the kind of trade you run, how much you can raise and how the money is spent. Most founders apply to HMRC for advance assurance, a letter confirming the company looks likely to qualify, before they start talking to investors. We help you check eligibility, prepare the application and file the compliance forms after shares are issued so investors can claim their relief.
Getting ready for investors
Investors want to see that you know your numbers. That means up to date bookkeeping, a clear record of who owns what, a cash flow forecast that shows how long the money will last, and a sensible plan for spending it. Messy records slow down due diligence and can knock confidence just when you need it.
We prepare monthly management accounts, keep your cap table in line with your company records, and build forecasts with you that you can explain in a pitch. When the funding round closes, we make sure the share allotments are filed correctly at Companies House and the SEIS or EIS paperwork is done on time.
R&D tax relief and other reliefs
If your startup is solving a real scientific or technological problem, such as building new software that goes beyond what already exists, you may qualify for research and development tax relief. For accounting periods starting on or after 1/4/2024 there is a merged R&D scheme, plus extra support for R&D intensive companies that are making losses. For a loss making startup, a claim can turn into a cash payment from HMRC.
Claims need a proper technical explanation and careful cost records, and HMRC checks them closely. We help you judge whether your work qualifies before you spend time on a claim.
Paying founders and first hires
In the early days many founders pay themselves very little. Even so, a small director salary through payroll can protect your National Insurance record. When you take on your first employee, you need to register as an employer, run payroll and enrol staff in a workplace pension. The Employment Allowance can reduce your employer National Insurance bill by up to £10,500 a year if you are eligible. We also explain share options, which many startups use to attract good people before they can pay market salaries.
Who this suits
- First time founders in Fulham and West London
- Tech and software startups preparing to raise money
- Consumer brands launching from home
- Co founders who need a clear share structure
- Startups that have raised a first round and need proper reporting
Common questions
What is SEIS and does my startup qualify?
SEIS gives investors in very early companies income tax relief on what they invest. Your company must be new, small and carrying on a qualifying trade, and there are limits on how much you can raise. We check the conditions against your plans before you approach investors.
What is the difference between SEIS and EIS?
SEIS is for the earliest stage and gives investors a higher rate of relief on smaller amounts. EIS is for slightly more established companies raising larger sums. Many startups use SEIS first and then EIS in a later round.
Do I need advance assurance from HMRC?
It is not compulsory, but most investors expect it. It shows HMRC has looked at your plans and thinks the company is likely to qualify. Getting it early makes fundraising smoother.
Should my startup be a limited company or a sole trader?
If you plan to raise investment or bring in co founders, a limited company is almost always needed, because investors buy shares. A sole trader set up can work for a small side business you will run alone.
When does my new company need to register for VAT?
You must register once taxable turnover goes over £90,000 in a rolling 12 months. Some startups register earlier so they can reclaim VAT on setup costs. We look at whether that helps you.
Can a startup that is not making a profit claim R&D tax relief?
Yes. Loss making companies with qualifying R&D can often receive a payable credit, which is cash from HMRC. The work must meet HMRC's definition of R&D, so we check that first.
What accounts do investors want to see?
Usually up to date management accounts, a cash flow forecast, a clear cap table and your filed company accounts. We help you prepare all of these in a format investors understand.