Here's a practical guide to setting up the basics for your business:
Business Bank Account
You don’t legally need one as a sole trader, but it’s strongly recommended to keep finances clean. Limited companies must have one.
- Zempler bank – The free business bank account.
Open your account in minutes.
The account that helps get your business off the ground.
Get going in minutes with no monthly fee, bank in-app or online
once approved. - Traditional banks (Lloyds, Barclays, NatWest) – slower to set up but useful if you need face-to-face banking or loans later
You’ll typically need your registration documents, ID, and proof of address to open one.
Insurance
The ones most small businesses need:
- Public liability insurance – covers injury or property damage to third parties. Essential if you meet clients, work on-site, or sell products. ~£50–£200/year for basic cover.
- Professional indemnity insurance – covers claims that your advice or work caused financial loss. Required if you’re a consultant, designer, accountant, etc. Often required by clients before they’ll hire you.
- Employers’ liability insurance – legally required (£5m minimum) the moment you hire anyone, even part-time.
- Contents/equipment insurance – covers your tools, laptop, stock if working from home or a premises.
Compare quotes on PolicyBee they’re a specialist insurance broker for small business and charities.
They’re independent and they’re digital.
Hassle free protection for freelancers, sole traders and limited companies.
They provide a speedy service, zero admin fees and no interest payments.
Licences & Permits
These depend on your industry. Common ones to check:
- Food business – register with your local council (free, must do 28 days before opening)
- Alcohol – premises licence from your local council
- Childcare/care work – Ofsted or CQC registration
- Financial services – FCA authorisation
- Music/events – premises licence or PRS/PPL licence for playing music
- Tradespeople – Gas Safe, NICEIC, etc. depending on trade
Check the gov.uk licence finder tool — enter your business type and location and it lists exactly what applies to you.
Simple Accounting
You don't need to be an accountant, but you need a system from day one.
The basics to track:
- All income (invoices sent and paid)
- All expenses (keep every receipt — physical or photo)
- Your tax liability (set aside ~20–30% of profit as you go)
Simple tools:
Wave- is best for Sole traders, free option Free at sign up
QuickBooks Simple Start- is best for Small businesses, VAT returns and costs £12/mo
Xero Starter- is best for Growing businesses, great bank feeds and costs £15/mo
FreeAgent- is best for Freelancers, does Self Assessment and costs £19/mo
Key habits:
- Reconcile your bank account monthly (match transactions to your records)
- Send invoices promptly and chase late payments
- File tax returns on time — Self Assessment deadline is 31 January each year for the previous tax year
- Keep records for at least 6 years (HMRC requirement)
