A startup accountant specialises in helping new and early-stage businesses manage their UK financial and tax responsibilities. Unlike a general accountant, they understand the challenges founders face, including limited cash flow, fast growth, fundraising, and the need to make the right decisions from the start.
Startup accountants also work differently from traditional high street firms. They use digital tools and cloud accounting software, offer flexible pricing for early-stage businesses, and give proactive advice throughout the year, not just at year end.
What Does a Startup Accountant Do?
A startup accountant helps new UK businesses get set up correctly, stay compliant with HMRC, and plan their taxes efficiently from day one. At GoForma, our ACCA and AAT qualified startup accountants give you one dedicated expert who knows early-stage businesses inside out.
Here is what a startup accountant handles for you:
- Company formation — registering your limited company or sole trader business with Companies House and HMRC
- PAYE, VAT and Corporation Tax registrations
- Filing of Annual accounts and tax returns
- Director salary and dividend planning
- R&D tax credits
- SEIS and EIS compliance s
- Bookkeeping and FreeAgent software
Our startup accounting packages start from £79 per month on a rolling monthly contract, with no tie-ins and a 30-day money-back guarantee.
Complete Startup Accounting Services
GoForma provides a complete accounting service for UK startups, supporting you from launch through to your first hire, VAT registration, funding round, and beyond. Here is everything we cover.
Company formation and business setup
We register your limited company with Companies House, advise on the best share structure for your circumstances, and complete all HMRC registrations such as Corporation Tax, PAYE, and VAT where applicable.
Sole trader registration
We register you as sole trader with HMRC and help you understand your tax and National Insurance responsibilities. You will know what to set aside and when payments are due.
Payroll and PAYE
As soon as your startup hires its first employee or pays the director a salary above the National Insurance secondary threshold, you need a PAYE scheme. GoForma registers your business for PAYE, runs your payroll each month, submits Real Time Information reports to HMRC, and issues payslips for every employee and director. We also manage auto-enrolment pension duties as your team grows.
VAT registration and quarterly VAT returns
You must register for VAT if your taxable turnover exceeds £90,000 in a rolling 12-month period. You may also benefit from voluntary registration before this threshold, especially if your customers are VAT-registered businesses, as you can reclaim VAT on your costs.
GoForma advises on whether and when to register, helps you choose the right VAT scheme for your business, and files your quarterly VAT returns under Making Tax Digital rules with HMRC.
Annual accounts and Corporation Tax
Every UK limited company must file annual accounts with Companies House and a Corporation Tax return with HMRC. You must file accounts within nine months of your year end and submit your Corporation Tax return within 12 months.
We prepare and submit both, and review your accounts so you understand your tax position before any payment is due.
Self Assessment tax returns for founders
As a company director, you must file a Self Assessment tax return with HMRC every year to declare your salary, dividends, and any other personal income. GoForma prepares and files your Self Assessment return, calculates your tax liability, and gives you clear payment deadlines so you never face late filing penalties.
Director salary and dividend planning
Most limited company directors pay themselves a combination of salary and dividends to minimise their overall tax bill. GoForma reviews your position each year and tells you exactly how much to pay yourself, how to structure it, and when to process payments to stay tax-efficient and compliant.
SEIS and EIS for UK startups
The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) offer some of the most generous tax reliefs in the UK for early-stage investment. To use these schemes, your company must apply for HMRC advance assurance before taking investment.
GoForma prepares and submits SEIS and EIS advance assurance applications on your behalf, checks your company's eligibility, and ensures your compliance documentation are correct so your investors can claim their relief without issues.
R&D tax credits for startups
If your startup carries out research and development work, such as developing new software, processes, products, or scientific advances, you may be able to claim R&D tax credits from HMRC.
GoForma reviews your eligibility, identifies qualifying costs, and prepares your R&D claim as part of your annual accounts process. Many of our tech startup clients claim R&D credits each year, often recovering tens of thousands of pounds
Confirmation statements
GoForma prepares and files your Confirmation Statement with Companies House, making sure your company details stay accurate and up to date. We review your shareholder, director, and registered office information before submission, so nothing gets missed.
FreeAgent cloud accounting software
All GoForma startup accounting packages include full access to FreeAgent accounting software, one of the UK’s leading cloud accounting platforms. It gives you live bank feeds, instant invoicing, automatic expense categorisation, real-time tax estimates, and a mobile app so you can manage your finances from anywhere.
As a FreeAgent Platinum Partner, GoForma includes premium access in your monthly fee at no extra cost.
SEIS and EIS for UK Startups
If you plan to raise investment, the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) can make your startup significantly more attractive to investors. Both schemes allow investors to claim substantial income tax relief on their investment but only if your company has applied for HMRC advance assurance before the investment is made.
What is SEIS?
SEIS stands for Seed Enterprise Investment Scheme. It is designed to help very early-stage UK companies attract investment by offering investors income tax relief of 50% on investments up to £200,000 per company per tax year. Investors can also claim Capital Gains Tax disposal relief on SEIS shares.
To qualify, your company must be:
- Must carry out a new qualifying trade
- Must be based in the UK
- Must not be listed on a stock exchange or planning to become listed
- Must not control another company (except qualifying subsidiaries)
- Must not be controlled by another company
Your company and its subsidiaries must also:
- Have gross assets under £350,000 at the time of the share issue
- Not be part of a partnership
- Have fewer than 25 employees at the time of the share issue
What is EIS?
EIS (Enterprise Investment Scheme) is available to slightly more established companies and offers investors 30% income tax relief on investments up to £1 million per year (or £2 million for knowledge-intensive companies). EIS has broader eligibility criteria than SEIS and can be used after a company exhausts its SEIS limit.
What is SEIS/EIS advance assurance?
Advance assurance is a confirmation from HMRC that your company is likely to qualify for SEIS or EIS investment.You apply for it before you take investment. Most sophisticated investors and angels will not invest in an SEIS-eligible company without advance assurance in place, as it protects their ability to claim tax relief.
GoForma prepares and submits advance assurance applications on your behalf. We review your company's structure, trading history, and proposed investment terms to check eligibility before we apply, so you are not surprised by a rejection.
How GoForma helps with SEIS and EIS
- Assess whether your company qualifies for SEIS, EIS, or both
- Prepare and submit your advance assurance application to HMRC
- Advise on any structural changes needed to qualify
- Prepare investor documentation and compliance statements
- Issue SEIS3 and EIS3 certificates to investors after investment
- Ensure ongoing compliance with HMRC's qualifying conditions
R&D Tax Credits for UK Startups
Research and Development (R&D) tax credits allow UK companies to reduce their Corporation Tax bill or receive a cash payment from HMRC for money spent on innovative work. For many tech and product-based startups, R&D tax credits are one of the most valuable ways to recover cash.
What qualifies as R&D for tax purposes?
HMRC defines R&D broadly. You do not need to run a formal research programme or work in a lab. If your startup is trying to advance knowledge or capability in science or technology, you may qualify.
Examples of qualifying activities include:
- Developing new software, algorithms, or technical processes
- Creating a new product that is not commercially available
- Overcoming a technical uncertainty that experts in the field cannot easily resolve
- Adapting existing technology to a new application in a non-obvious way
How much can a startup claim?
Under the merged R&D relief scheme from 1 April 2024, most companies can claim an additional 86% deduction on qualifying R&D costs, reducing their Corporation Tax bill. Loss-making SMEs that meet the RDEC criteria can also receive a taxable credit of 20% of qualifying expenditure from HMRC.
The amount you recover depends on your R&D spend, your tax position, and whether you have claimed before. GoForma has helped startup clients recover from a few thousand pounds to over £100,000 in R&D tax credits.
How GoForma handles R&D claims
We review your qualifying expenditure as part of your annual accounts process, prepare a detailed R&D report that meets HMRC requirements, and submit the claim with your Corporation Tax return. We also keep clear records of our methodology so your claim stands up to any HMRC enquiry.
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