Small Business Compliance Checklist

Regardless of whether you are a sole trader or limited company, tax compliance is non-negotiable. Use the following checklist:

• Sole traders:
  • Registered for Self Assessment with HMRC
  • Self Assessment tax return filed by 31 January each year
  • Payments on account made by 31 January and 31 July where required
  • Business records kept for at least 5 years after the filing deadline
• Limited companies:
  • Corporation Tax return filed within 12 months of the company's accounting period
  • Corporation Tax paid within 9 months and 1 day of year end
  • Annual accounts filed at Companies House within 9 months of year end
  • Confirmation Statement filed annually
  • Event-driven filings submitted within 14 days of any changes (directors, addresses, shares)
  • PSC register kept up to date
• VAT (if registered or turnover approaching £90,000 threshold):
  • VAT returns submitted quarterly (or monthly)
  • VAT paid within one month and 7 days of the period end
  • Digital records kept under Making Tax Digital for VAT

If you have employees, check you have covered the following:

• HMRC PAYE registration completed before the first payday
• Right to work check completed for every employee before start date — documents retained
• Written employment contract or statement of particulars given on or before the first day
• Payslips provided on or before each payday, itemising all deductions
• National Minimum Wage / National Living Wage rates reviewed each April
• Holiday entitlement tracked and recorded — statutory minimum of 5.6 weeks
• Workplace pension scheme set up; eligible employees auto-enrolled within six weeks of start
• Declaration of compliance submitted to The Pensions Regulator
• Employers' liability insurance in force — certificate displayed
• Disciplinary and grievance procedure in place, consistent with the Acas Code
• Staff handbook (or equivalent policies) provided to all employees
• Payroll records retained for at least 3 years (6 recommended)
• P60s issued to all employees by 31 May each year
• P11D filed for any employees with taxable expenses or benefits (by 6 July)

Data protection (UK GDPR) checklist:

• ICO registration fee paid (check whether exemption applies)
• Privacy notice on website — covering all categories of personal data processing
• Cookie consent mechanism implemented — equal prominence for accept and reject
• Data processing agreements in place with all third-party processors (cloud services, email platforms, payment providers)
• Process for responding to Subject Access Requests within one month
• Internal breach log maintained; reportable breaches notified to ICO within 72 hours
• Staff privacy notice provided to all employees
• Personal data retention periods defined and enforced

Health and safety checklist:

• HSE health and safety law poster displayed at workplace
• Written health and safety policy in place (mandatory for 5+ employees)
• Risk assessments completed for all significant hazards — written records kept (mandatory for 5+ employees)
• First aid provision appropriate for the workplace and number of employees
• Fire risk assessment completed and emergency procedures in place
• Accident book in place; RIDDOR reporting process understood
• Employers' liability insurance certificate kept for 40 years

Consumer rights and trading standards:

• Terms and conditions do not exclude or limit statutory consumer rights
• Prices inclusive of VAT (for consumer-facing businesses)
• Distance selling regulations complied with — cancellation rights communicated for online/phone sales
• Written complaints procedure available and followed consistently
• ADR scheme signposted in terms and conditions and final response letters
• Product safety obligations met if you manufacture, import, or distribute goods

Other common obligations:

• Business insurance reviewed annually — public liability, product liability, professional indemnity as appropriate
• Licences and permits in place for regulated activities (alcohol licence, food business registration, care registration, financial services authorisation)
• Anti-money laundering (AML) policies and procedures if operating in a regulated sector (accountancy, legal, estate agency, financial services)
• Environmental obligations — waste duty of care, packaging regulations if applicable
• Intellectual property — trademarks, copyrights, and domain names registered and protected as appropriate