Startup Accountants UK

What does a startup accountant do?

They help you pick a structure, form the company if you need one, set up cloud software, and file the first accounts and tax returns. Specialists also support SEIS/EIS paperwork and R&D claims. They do not raise your round or replace a lawyer on the shareholders' agreement.

The expensive mistakes are the ones you cannot unwind: the wrong share class, a late Companies House filing, VAT registration timed badly. Software should be MTD-compatible from day one even if Income Tax MTD does not apply to you yet.

Do startups need an accountant from day one?

Not legally. Hire one before or just after incorporation if you will take SEIS/EIS, pay yourselves, or claim R&D. Skip a monthly specialist if you are still testing a sole-trader idea with almost no revenue — a cheap Self Assessment is enough until the structure decision is real.

Once you have a company, you have Companies House and HMRC dates whether or not you have revenue. A dormant company still files. Do not leave the first confirmation statement to chance.

How much does a startup accountant cost?

Startup packages typically start from £59–£99 per month for basic limited-company compliance on our editorial benchmarks. R&D, SEIS/EIS or investor-ready accounts sit at £100–£149+ monthly. Formation itself is often a one-off, not the monthly fee.

Ask what happens at your first funding round — some firms hand you off. Compare three quotes that name software, payroll and whether R&D is extra.

Should a startup be a sole trader or a limited company?

Sole trader is simpler while you are testing with little revenue and little risk. A limited company adds liability protection and a different tax system, plus extra filings. Model both for your profit and your risk — do not copy a round-number threshold from a forum.

Investors usually expect a company. Customers sometimes do too. If you have already incorporated, use the limited-company page for the ongoing package and keep this page for the extras (shares, SEIS, R&D).

Can an accountant help with SEIS, EIS and R&D?

Yes, if they actually do that work. SEIS and EIS are HMRC advance-assurance and share-issue processes, not a monthly bookkeeping extra. R&D is a separate claim under the merged expenditure credit scheme for periods beginning on or after 1 April 2024. Confirm current relief rules on GOV.UK.

Do not pay a success-fee R&D shop to claim routine software installs. A competent adviser will say no as often as yes. We do not invent relief percentages on this page — rates change.

What should a startup package include?

Formation or a handover of an existing company, cloud software, bookkeeping, accounts, CT600 and confirmation statement. Payroll when you hire. SEIS/EIS, share option schemes and R&D should be priced as projects.

Ask who owns the Xero or QuickBooks organisation. Ask who you call when a seed investor wants numbers this week.

• Usually in: accounts, CT600, software, basic books
• Often extra: SEIS/EIS, EMI options, R&D, payroll, VAT

How should I choose a startup accountant?

Pick a firm that has filed SEIS or R&D if you need those, then check ICAEW, ACCA, AAT or ICAS. Compare a compliance package separately from project work. Skip anyone who talks like a fundraiser.

Online startup practices are common. Verify the company number. Get the engagement letter to say what happens if you raise and outgrow them.

1. Decide sole trader vs company with a written model
2. Set up MTD-compatible software before the first invoice
3. Buy compliance monthly; buy SEIS/R&D as projects
4. Check the firm on a professional-body register