The Sheffield business picture
There are 66,764 active companies registered in the S postcode area, which covers Sheffield and towns around it such as Rotherham, Barnsley, Chesterfield and Worksop. 9,957 new companies were set up there in the 12 months to August 2026. That is 149.1 new companies for every 1,000 active ones, against 137.5 across the UK, so people in and around Sheffield are forming companies a little faster than the national rate.
The Sheffield post town on its own has 32,157 active companies, and 5,019 new ones were set up in the same period. That is 156.1 per 1,000, which puts Sheffield 53rd of the 175 UK post towns with at least 5,000 companies.
These figures count registered companies only. Sole traders and ordinary partnerships are not on the Companies House register, so a self-employed plumber or tutor working across the city does not appear in them. A company's registered office is also not always where it trades.
How many accountancy firms are there?
The S postcode area has 720 accountancy firms set up as companies, one for every 93 companies. The UK figure is one for every 83, so there are slightly fewer firms for each company than average. The Sheffield post town has 370 firms, one for every 87 companies, which ranks 70th of 175 towns when ordered from the most companies per firm to the fewest. The count leaves out sole practitioners and LLPs, so the real number of accountants is higher.
For someone choosing an accountant, the local count matters less than it used to. Your Self Assessment, company accounts and VAT returns are all filed online, so the useful questions are whether an accountant understands your kind of work, whether the fee is fixed, and whether you can reach the same person when something comes up.
Industries that stand out in Sheffield
A location quotient compares how common a trade is locally with how common it is across the UK. A figure of 1.29 means the trade makes up 1.29 times the UK share of companies. Two trades stand clearly above the national average in the S postcode area.
Electricians
Electrical installation has 1,015 active companies here, a location quotient of 1.29, and 153 were set up in the last 12 months. Electricians who work for builders and main contractors usually fall under the Construction Industry Scheme, so the contractor deducts 20% from the labour part of each payment (30% if you are not registered) and pays it to HMRC as an advance towards your tax. Once you are VAT registered, work for other VAT-registered building firms usually comes under the domestic reverse charge. Our page on accountants for electricians covers both in detail.
Hairdressing and beauty
Hairdressing and beauty has 1,237 active companies, a location quotient of 1.24, and 289 new companies in the year. Salons that rent out chairs to self-employed stylists must charge VAT on those rentals once they are VAT registered, and tips count as taxable income. See accountants for hairdressers for how chair renters and salon owners are taxed.
Other trades, including therapy and other health services (1.09) and GP practices (1.07), sit close to the UK average in the S postcode area.
Local practicalities in Sheffield
The Sheffield Clean Air Zone
Sheffield has a Class C Clean Air Zone covering the inner ring road and the city centre inside it. Charging started on 27 February 2023. Vehicles that do not meet the emission standards (for taxis and vans, Euro 6 diesel or Euro 4 petrol) pay a daily charge:
- Taxis, private hire vehicles and light goods vehicles such as vans and pickups: £10 a day.
- Buses, coaches and heavy goods vehicles: £50 a day.
Minibuses are also in scope. Private cars and motorbikes are not charged. Hackney carriages licensed by Sheffield City Council had a temporary exemption that ended on 4 June 2023, so a non-compliant Sheffield taxi now pays like any other. You can pay on GOV.UK up to six days before or six days after the journey, and check your vehicle on the council's Clean Air Zone pages.
On the tax side, HMRC's simplified expenses guidance says the flat mileage rate does not include journey costs such as tolls, congestion charges and parking fees, which are dealt with separately when they are for business. A penalty for not paying a charge is a fine, and fines are never an allowable expense. Your accountant will check how any charges you pay are treated. Taxi and private hire drivers can find more on our taxi driver accountants page. Drivers, vehicles and private hire operators in the city are licensed by Sheffield City Council's taxi licensing team.
Business rates and small business rate relief
Business rates in Sheffield are billed by Sheffield City Council. Under the national scheme, a business using one property with a rateable value of £12,000 or less pays no business rates, and the relief tapers away between £12,001 and £15,000. Sheffield asks you to complete a small business rate relief application form, and you must keep paying as billed while it is considered. The form and the other reliefs are on the council's business rate relief page.
Business support
The South Yorkshire Growth Hub, run by the South Yorkshire Mayoral Combined Authority, is the single point of contact for business support across Barnsley, Doncaster, Rotherham and Sheffield. It can point you to help with training through Skills Bank, finance, innovation, exporting and getting a new venture off the ground.
Working with an online accountant in Sheffield
GoForma does not have an office in Sheffield. We are an online accountancy practice based at 40 Bowling Green Lane, London EC1R 0NE, and we work with clients across the UK by phone, video, email and WhatsApp. Our accountants are ACCA and AAT qualified, and FreeAgent accounting software is included in every package.
If you are self-employed, the Start Sole Trader package gives you a dedicated accountant and your Self Assessment return for £44 a month, with 50% off the first three months. For a limited company, the Start Bundle covers year-end accounts, the Corporation Tax return and payroll for one director for £88 a month, also with 50% off the first three months. Prices exclude VAT, run month to month and are all on our packages page. If you are not sure which suits you, book a free consultation first.