Accounting & Tax for Startups & New Businesses
Specialist startup accountants helping UK founders from day one — company formation, HMRC registration, R&D tax credits, SEIS/EIS investor relief, payroll setup, management accounts and cash flow planning. Fixed monthly fees. London & nationwide.
Why Startups Need a Specialist Accountant From Day One
Most founders launch with a great product and underestimate the complexity of UK tax and accounting obligations. Getting the structure right from incorporation — share classes, HMRC registrations, payroll setup, VAT timing, R&D claims — saves tens of thousands in the first three years. We work with UK startups at every stage from pre-revenue to Series A.
Company structure matters more than most founders realise. The difference between incorporating correctly with the right share structure and EMI option scheme in place versus fixing it later can cost £10,000–£30,000 in legal and tax restructuring fees. We advise founders on share classes, growth shares, alphabet shares and EMI schemes before incorporation — when the cost is minimal.
SEIS and EIS tax relief is one of the most powerful tools available to UK startups raising early capital. SEIS gives angel investors 50% income tax relief on investments up to £200,000, plus CGT exemption. EIS provides 30% relief on investments up to £1 million. Advance Assurance from HMRC — which we handle — gives investors certainty before writing a cheque. Many startups lose early investors because they haven’t obtained Advance Assurance. We ensure it’s in place before you fundraise.
R&D Tax Credits are claimed by fewer than 30% of eligible UK startups — largely because founders don’t realise their qualifying activities. Development of new software, processes, products or materials; resolving technical uncertainty; building novel algorithms or APIs — all potentially qualify. Under the 2024 merged R&D scheme, qualifying SMEs can claim up to 27p for every £1 of qualifying expenditure, with loss-making startups receiving a cash repayment. We identify qualifying activities, prepare and submit the R&D claim, and defend it with HMRC.
Cash flow forecasting and management accounts are what HMRC expects and investors demand. A simple P&L filed annually is not sufficient to manage a growing startup — management accounts give founders visibility on cash runway, burn rate, gross margins and working capital cycles. We produce monthly management accounts from £149/month, formatted for board review and investor reporting.
✅ Key Services for Startups & New Businesses
- ✓ Company formation & shareholder setup
- ✓ HMRC registration — CT, PAYE, VAT
- ✓ SEIS/EIS Advance Assurance application
- ✓ R&D tax credit identification & claim
- ✓ EMI share option scheme valuation
- ✓ Management accounts (monthly/quarterly)
- ✓ Cash flow forecasting & runway modelling
- ✓ Payroll setup (RTI, Auto-Enrolment)
- ✓ Corporation Tax (CT600) filing
- ✓ Annual accounts & Companies House filing
- ✓ Investor-ready financial statements
- ✓ Grant funding identification (Innovate UK etc)
What Startups & New Businesses Businesses Face — and How We Solve It
Businesses in This Sector We Regularly Serve
Pre-Revenue Tech & SaaS Startups
Founders with MVP or prototype stage businesses needing R&D claims, SEIS setup and investor-ready financials before they start fundraising.
Consumer Brand Startups
Product companies launching DTC or retail channels — requiring VAT structuring, cost of goods tracking, inventory accounting and margin analysis.
Funded Startups (Pre-Series A)
Post-seed businesses with investors on the cap table requiring monthly management accounts, board packs and cash flow forecasting.
Overseas Founders — UK Subsidiary
Non-UK founders incorporating a UK entity for market entry or investment — needing full HMRC setup, transfer pricing basics and director obligations.
2026 Outlook — Tax & Finance for Startups & New Businesses
UK startup funding in 2026 remains strong despite macroeconomic pressures — the UK is Europe’s largest startup ecosystem by venture funding, with £11bn+ raised in 2025. But the competitive fundraising environment means investor scrutiny on financials has increased. Investors increasingly require SEIS/EIS Advance Assurance, audited or reviewed management accounts, and a clear R&D narrative before term sheets are issued.
The 2024 merged R&D scheme came into full effect for accounting periods starting 1 April 2024. It replaced the separate SME and RDEC schemes with a single merged scheme at 20% relief rate. Loss-making SMEs with a high R&D intensity (qualifying R&D spend ≥ 30% of total spend) can still claim under the enhanced SME scheme at 27% effective rate. Understanding which route your startup qualifies for is critical — and most founders get it wrong without specialist advice.
EMI option schemes remain the most tax-efficient way to incentivise UK startup employees in 2026. Options granted at market value face no income tax on exercise — only CGT at 10% (Business Asset Disposal Relief) on eventual sale. HMRC’s working-hours requirement (25 hours/week or 75% of working time) has been clarified in recent guidance, making remote-first startups easier to qualify. We handle valuations, option agreements and HMRC notifications.
Making Tax Digital (MTD) for Corporation Tax is on track for mandatory implementation from 2026. Startups incorporating now should build digital record-keeping into their accounting setup from the outset — rather than retrofitting later. We ensure all clients are MTD-ready from day one.
Frequently Asked Questions — Startups & New Businesses
Strictly no — but the decisions made at incorporation (share structure, articles of association, loan accounts, SEIS eligibility) are far easier and cheaper to get right from the start than to fix later. A £500 incorporation review with an accountant can prevent a £15,000 restructuring 18 months later.
SEIS (Seed Enterprise Investment Scheme) is for very early stage companies — max company age 3 years, max gross assets £350,000, max employee count 25. Investors get 50% income tax relief on up to £200,000 per investor per year. EIS is for later-stage companies — max 10 years old, max gross assets £15m, max 250 employees. Investors get 30% relief on up to £1m per year. Most startups use SEIS first, then EIS for subsequent rounds.
Mandatory VAT registration is required when taxable turnover exceeds £90,000 (the 2024/25 threshold). However, voluntary registration earlier can be beneficial if your customers are VAT-registered businesses (as they reclaim input VAT, making your prices neutral to them) and if you have significant VAT-bearing costs you want to reclaim. We assess the optimal VAT registration timing for each startup.
Qualifying activities must seek to achieve a scientific or technological advance — resolving a technical uncertainty that a competent professional in the field couldn’t readily resolve. This includes software development involving genuine technical challenges, novel materials or process development, and original algorithm design. Routine software development (configuring existing platforms) does not qualify. We assess qualifying activities during your onboarding.
At Britvex, startup accounting packages start from £149/month for early-stage companies (annual accounts, CT600, HMRC compliance) rising to £449/month for fully funded startups requiring monthly management accounts, payroll, VAT and R&D claim preparation. We quote fixed monthly fees so you have no billing surprises.
4 Costly Mistakes — and How to Avoid Them
The most expensive startup accounting mistake. A generalist will file your CT600 but miss a £50,000 R&D claim, fail to obtain SEIS Advance Assurance before you fundraise, and under-structure your cap table. Specialist startup accountants pay for themselves.
Paying key employees purely through PAYE when they could receive EMI share options — with CGT at 10% on sale versus income tax at 40–45% — costs talented employees hundreds of thousands on exit. Set up EMI from your first hire.
SEIS eligibility expires 3 years after company incorporation (or from when trading commenced). Many founders fundraise at 4 years and find they’ve missed the window. Apply for SEIS Advance Assurance as soon as you’re ready to raise — even if the round takes 12 months to close.
HMRC expects records to be maintained contemporaneously. A HMRC investigation on a startup with 2 years of reconstructed records is expensive and stressful. Proper cloud accounting (Xero/QuickBooks) from day one, with bank feeds and receipt capture, costs £15/month and saves thousands in accountancy reconstruction fees.
Transparent Monthly Fees — No Surprises
Fixed monthly pricing. All-inclusive within your tier. Cancel with 30 days notice. No setup fees. All plans include a free onboarding call.
Complete Your Accounting & Tax Setup
Startup Accountants — From Day One to Series A
Book a free 30-minute startup accounting consultation. R&D tax credits, SEIS/EIS, management accounts, payroll — everything your startup needs from a single specialist firm.