Beyond the Basics: Hidden Compliance Costs After Incorporation of a UK Company

Setting up a UK private limited company is fast and affordable. However, many new business owners underestimate the hidden compliance costs and obligations that follow incorporation. Planning ahead helps avoid penalties and ensures smooth operations.

Incorporation Fees & Timeline

• Mirr Asia Incorporation Package: USD 1,400 (includes company formation, 1-year registered address in central London, company secretary service, and statutory records; based on up to 2 individual shareholders).

• Expected time required: 7–10 business days after receiving all required documents (approximately 2 weeks).

• Companies House government fee: £50 (digital standard) or £78 (same-day).

Note: Companies House can often process filings within 24 hours, but overall incorporation usually takes 7–10 business days due to KYC, document checks, and compliance review.

Annual Confirmation Statement

Every UK company must file a Confirmation Statement (CS01) at least once a year.

• Government fee: £34 online (£62 paper).

• Mirr Asia assists with this filing as part of its annual services.

Official Reference – GOV.UK: Confirmation statement

Accounts & Corporation Tax

• Annual accounts: must be filed with Companies House within 9 months of year-end.

• Corporation Tax Return (CT600): must be filed within 12 months of period end.

• Corporation Tax payment: due 9 months + 1 day after year-end.

• Accounting & Tax Services: USD 2,350–3,000 (depending on size, VAT, payroll).

Official Reference – GOV.UK: Company accounts and penalties

Official Reference – GOV.UK: Company Tax Return

New Companies House Requirements (2024–2025)

Recent reforms require:

• An “appropriate” registered office address (no PO Boxes).

• A registered email address for official communication.

• A lawful purpose statement confirmed annually.

• Increased Companies House fees (May 2024).

Official Reference – GOV.UK: Changes to UK company law

Directors & PSC Register

• A company must have at least one director who is a natural person, aged 16+ (no UK residency requirement).

• All companies must maintain a Persons with Significant Control (PSC) register.

Official Reference – GOV.UK: Appoint a director

Official Reference – GOV.UK: People with significant control (PSC)

Corporation Tax Rates (2025/26)

• Main rate: 25%

• Small profits rate: 19% (profits ≤ £50,000)

• Marginal relief: tapered rate up to £250,000

Official Reference – GOV.UK: Corporation Tax rates

VAT Registration

• Threshold: £90,000 taxable turnover (rolling 12 months).

• Deregistration threshold: £88,000.

• HMRC does not charge a fee.

• VAT registration: USD 650.

Official Reference – GOV.UK: VAT registration thresholds

Payroll, National Insurance & Insurance

• Companies hiring staff must register for PAYE before paying employees.

• Employers contribute 15% National Insurance (2025/26 rate).

• Employers’ Liability Insurance of at least £5 million cover is compulsory for most employers.

Official Reference – GOV.UK: PAYE for employers

Official Reference – GOV.UK: National Insurance rates

Official Reference – HSE: Employers’ Liability Insurance

Data Protection (ICO Fee)

Most companies processing personal data must register with the ICO:

• Fee: £52, £78, or £3,763 (with £5 discount for Direct Debit).

Official Reference – ICO: Data protection fee

The Real Hidden Costs

While incorporation itself is inexpensive, compliance costs — filings, tax returns, VAT, payroll, insurance, and data protection — add up. Ignoring them risks fines and even prosecution.

Mirr Asia Support

Mirr Asia Business Advisory ensures you stay compliant with clear pricing:

• Company Incorporation + 1 year services: USD 1,400

• Accounting & tax services: USD 2,350–3,000

• VAT registration: USD 650

• Local director: Not required under UK law

Our expert team provides end-to-end support so your UK company remains in good standing and focused on growth.