Accountants for Startups
Company formation, first-year deadlines, VAT, R&D tax relief, SEIS and EIS, and books that are ready when an investor asks. Fixed monthly fees that scale with you, from founders across North London and Hertfordshire.
The first year of a company is when most of the expensive mistakes are made. The wrong share structure at incorporation. VAT registration left until a customer asks for a VAT invoice. R&D relief never claimed because nobody realised the work qualified. Founders paying themselves in a way that creates a loan account problem. Bookkeeping left in a spreadsheet until an investor asks for management accounts and there is nothing to show.
We work with founders across North London and Hertfordshire, from pre-revenue technology companies raising a first SEIS round to service businesses that have just left a corporate job and need a company, a bank account and a payroll by the end of the month. The common thread is that the founders want to spend their time on the product and the customers, not on Companies House.
This page explains what we do for startups, what happens in the first twelve months of a company's life, how SEIS, EIS and R&D relief work in 2026/27, and the questions founders ask us most often.
What startups usually need help with
Structure and incorporation
Share classes, founder vesting, option pools and the articles of association are far easier to get right on day one than to fix later. We incorporate the company with a structure that will survive a funding round and register it for corporation tax, PAYE and VAT as needed.
First-year deadlines
Corporation tax registration within three months of starting to trade. First accounts due 21 months after incorporation. Confirmation statement on the first anniversary. RTI from the first payday. We build the calendar before the first invoice goes out.
VAT registration timing
Registration is compulsory once taxable turnover passes £90,000 in any twelve months, but registering voluntarily from the start often makes sense when your customers are businesses and you are spending on software, equipment and contractors. We work out which is right for you.
R&D tax relief
Software, engineering and science startups solving genuine technical uncertainty can claim under the merged R&D scheme, worth a taxable credit of 20% of qualifying costs, with a higher rate for loss-making companies whose R&D is a large share of their spend. We scope the claim and prepare the technical narrative HMRC now requires.
SEIS and EIS
SEIS gives investors 50% income tax relief on up to £200,000 a year, and a company can raise up to £250,000 under it. EIS gives 30% relief on larger rounds. Both need advance assurance and a compliance statement after the round. We handle the applications and the paperwork.
Investor-ready numbers
Monthly management accounts, a cash runway forecast and a clean cap table are what an investor expects to see at the first meeting. We set the bookkeeping up in Xero from day one so the reports come out of the system rather than being built the night before.
Services for startups
Company formation and accounting
Incorporation, registrations, statutory accounts and corporation tax returns for new companies.
Learn more →Xero setup
Chart of accounts, bank feeds, expense capture and integrations with Stripe, Shopify or your invoicing tool, set up in the first week.
Learn more →Bookkeeping
Reconciled monthly so management accounts and runway forecasts are always current.
Learn more →Tax planning and R&D
R&D relief claims, SEIS and EIS advance assurance, founder remuneration and share scheme advice.
Learn more →Payroll
Founder and first-hire payroll with RTI, auto-enrolment set-up and the Employment Allowance once you qualify.
Learn more →Management reporting
Monthly management accounts, burn rate and runway reporting, and board packs for investors.
Learn more →Your first twelve months as a limited company
Incorporation takes a day. Within three months of starting to trade the company must register for corporation tax. As soon as anyone is paid a salary, including a founder, the company needs a PAYE scheme and must send an RTI submission to HMRC on or before each payday. Auto-enrolment duties start with the first employee, although a director without an employment contract can be exempt. If you register for VAT, the first return is due one month and seven days after the end of the first VAT quarter.
The first confirmation statement is due within 14 days of the first anniversary of incorporation, with the £50 Companies House fee, and every director and person with significant control has to have verified their identity with Companies House. The first set of accounts is due 21 months after incorporation, and the first corporation tax return twelve months after the end of the first accounting period, which is often split into two returns because the first period runs longer than twelve months. We map all of this out at the start so nothing is discovered late.
- Incorporation with a share structure that survives a funding round
- Corporation tax, PAYE and VAT registrations handled together
- Shared deadline calendar from day one
- Founder salary set to secure a state pension year without wasting allowance
Raising money: SEIS, EIS and being ready for diligence
The Seed Enterprise Investment Scheme lets a company under three years old with gross assets below £350,000 and fewer than 25 employees raise up to £250,000 from investors who receive 50% income tax relief and capital gains exemption on exit. The Enterprise Investment Scheme follows for larger rounds, with 30% relief and higher limits. Both are, in practice, a condition of raising from UK angels, and both depend on getting advance assurance from HMRC before the round and filing a compliance statement afterwards so investors receive their certificates.
The rules are detailed. Money must be spent on a qualifying trade within set periods. Investors cannot be connected to the company in the wrong way. Shares must be full-risk ordinary shares, and paying for subscriber shares late or issuing preference rights can break the relief. We prepare the advance assurance application, review the shareholder documents for compliance and file the SEIS1 or EIS1 after completion.
Investors also expect to see three things in due diligence: management accounts that reconcile to the bank, a cap table that matches Companies House, and a forecast that shows how long the money lasts. Because we keep the books monthly in Xero, those documents already exist when the request comes in.
R&D tax relief for early-stage companies
If your company is trying to achieve an advance in science or technology and the answer was not readily deducible by a competent professional, the costs of that work can qualify for R&D relief. That covers a lot of software and hardware development, but not routine development using known techniques, and HMRC now checks claims far more closely than it did. Under the merged scheme that applies to accounting periods starting on or after 1 April 2024, the relief is a taxable credit of 20% of qualifying expenditure, which is worth around 15% net for a profitable company and a cash payment for a loss-making one. Loss-making companies whose R&D spend is at least 30% of total expenditure qualify for the enhanced intensive rate, which is worth more.
Qualifying costs include staff, subcontractors within limits, software licences, cloud computing and consumables. Every claim now needs an additional information form with a technical narrative and a named senior officer taking responsibility, and first-time claimants must notify HMRC in advance in some circumstances. We scope the projects with your technical lead, calculate the costs from the payroll and ledgers, and write the narrative so the claim withstands an enquiry.
Why startups choose IAK
- Fixed monthly fee that starts small and scales as the company grows
- Incorporation, registrations and Xero set-up in the first week
- SEIS and EIS advance assurance and compliance statements handled
- R&D claims scoped and written to survive an HMRC enquiry
- Investor-ready management accounts and runway forecasts
- Same-day answers on weekdays from a named accountant
Frequently asked questions
How much does a startup accountant cost?
A pre-revenue or early-stage company usually starts at the lower end of our £150 to £450 a month range, covering bookkeeping, payroll, VAT, statutory accounts, corporation tax and the confirmation statement. R&D claims and SEIS or EIS applications are quoted separately as fixed fees. We put the quote in writing before we start.
Should I set up as a limited company or a sole trader?
If you plan to raise investment, take on staff, or work with larger customers, a limited company from the start is almost always right, and SEIS and EIS require one. If you are testing an idea alone with little risk, starting as a sole trader and incorporating later is cheaper. We talk it through before you decide.
When should a startup register for VAT?
Compulsory registration applies once taxable turnover in any rolling twelve months exceeds £90,000. Registering voluntarily earlier makes sense when your customers are VAT registered businesses and you have significant costs to reclaim VAT on. It is usually the wrong choice for a consumer business under the threshold, because it adds 20% to your prices.
Can a pre-revenue company claim R&D relief?
Yes. Loss-making companies can surrender the enhanced loss for a payable credit, which is often the first meaningful cash a deep-tech startup receives from anyone other than investors. The claim is made through the corporation tax return, so the company needs a filed set of accounts and a CT600 for the period.
How do I get SEIS advance assurance?
You apply to HMRC with a business plan, forecasts, details of the proposed investors or evidence of a genuine fundraising effort, and the company documents. HMRC typically responds within four to eight weeks. We prepare the application and deal with any questions HMRC raises.
How should founders pay themselves in year one?
Most founders take a small salary, often at or below the £12,570 personal allowance, to secure a state pension year and keep employer National Insurance low, and take dividends only once the company has distributable profit. Drawing money without a salary or dividend creates a director's loan, which can trigger a 35.75% tax charge if not repaid. We set this up correctly from the first payroll.
Do you work with startups outside North London?
Yes. Everything runs through Xero, email and video calls, and we act for founders across the UK. Local founders in Barnet, Enfield, Finchley, Potters Bar, Hatfield and Welwyn are welcome to meet us at the office in Cuffley.
Guides and calculators on this topic
Free reading and tools from our insights library if you want the detail before you speak to us.
Start the company properly
Tell us what you are building and how you plan to fund it. We will set out the structure, the registrations, the deadlines and the reliefs that apply, and quote a fixed monthly fee, free of charge.