What does starting a business actually cost?
Add the costs you’ll actually use to see the real year-one and ongoing cost, sole trader and limited company side by side.
£0 if you do it yourself.
Free tools exist, £0 is fine to start.
£0 if your work genuinely doesn't need any yet.
£0 on a free account.
Ltd only, £0 if you use your home address.
Ltd formation: £100 → £0 when you form through a partner that bundles banking in.
Sole trader
Year one, all-in- HMRC registrationFree, always
- Free
Sole trader total
£0
Limited company
Year one, all-in- Company formationCovered free, normally £100
- Free
- Confirmation statementAnnual, filed online
- £50
Limited company total
£50
Every year after (ongoing)
Sole trader
Ongoing annual costNo costs added yet.
Sole trader total
£0
Limited company
Ongoing annual cost- Confirmation statement
- £50
Limited company total
£50
Statutory Companies House fees are from the current schedule. Everything else is optional and down to your choices. Excludes Income Tax, Corporation Tax and VAT, which depend on your profit and turnover, see our tax guide for that. Not tax advice.