AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
The fixed government costs of a UK limited company in its first year are small: £100 to incorporate by software and £50 for the first confirmation statement under the Companies House fees from 1 February 2026. The larger costs are the ones you buy in, such as a registered office service, an accountant, insurance and any premises, so get written quotes for each and keep a buffer for Corporation Tax.
Nigerian founders setting up in the UK often budget for the incorporation fee and little else, then meet a year of smaller bills. This guide lists the costs a typical small company meets in its first twelve months, separates the fixed fees from the quoted ones, and gives a worked example you can adapt.
Fixed Companies House fees
Companies House raised its fees on 1 February 2026. Inform Direct's summary of the new fees determination (29 December 2025) lists:
| Filing | Fee from 1 Feb 2026 |
|---|---|
| Incorporation by software or online | £100 (was £50) |
| Same-day incorporation (software) | £156 |
| Paper incorporation | £124 |
| Confirmation statement, digital | £50 (was £34) |
| Confirmation statement, paper | £110 |
| Change of name, digital | £20 |
GOV.UK's Companies House fees page confirms a new fees determination took effect on 1 February 2026; check it for any later change. The fee is set by the date you submit, not the period the filing covers.
Costs you buy in
These vary widely by provider, so the figures in the example below are placeholders, not market prices. Get at least two written quotes for each.
- Identity verification: free to do yourself through GOV.UK One Login; an ACSP may charge if you use one. See verifying through an ACSP.
- Registered office service: needed if you do not have an appropriate UK address; it must meet the appropriate address rule.
- Accountant: year-end accounts, the Corporation Tax return and often payroll.
- Insurance: public liability, professional indemnity and, once you employ staff, employers' liability; see employers' liability insurance.
- Premises and business rates: if you rent a shop or office, small business rate relief may reduce rates to nil for a rateable value of £12,000 or less (GOV.UK).
- Bank account fees, software, domain and email.
Tax to set aside
A profitable company pays Corporation Tax: GOV.UK lists 19% on profits of £50,000 or less and 25% on profits over £250,000, with marginal relief in between. A company that pays its director a salary may also need to run payroll. Set aside a share of profit each month rather than meeting the bill at once; see what a small firm pays in Corporation Tax.
Worked first-year budget (illustration only)
A one-director consultancy, working from home, with a registered office service. Fixed fees are from the table above; every other line is an assumed quote for illustration.
| Item | Amount |
|---|---|
| Incorporation (software) | £100 |
| First confirmation statement (digital) | £50 |
| Registered office service (assumed quote) | £150 |
| Accountant for year-end accounts and tax return (assumed quote) | £1,200 |
| Professional indemnity and public liability insurance (assumed quote) | £400 |
| Software, domain and email (assumed) | £300 |
| Total before tax | £2,200 |
Check: 100 + 50 + 150 + 1,200 + 400 + 300 = 2,200. If the company makes £30,000 profit and that profit is all taxed at the 19% small profits rate, Corporation Tax would be £5,700, bringing first-year outgoings to £7,900.
A timeline of year-one bills
| When | What to expect |
|---|---|
| Month 0 | Incorporation fee; identity verification for each director and PSC; registered office service; bank account |
| Months 1 to 3 | Insurance; software subscriptions; registration for taxes that apply, such as Corporation Tax and payroll |
| Around month 12 | First confirmation statement, due by the date Companies House shows |
| After the first accounting period | Accountant's fee; first accounts and Corporation Tax return; tax payment |
Dates for accounts and tax depend on the accounting period; see first-year accounts.
If the founder lives in Nigeria
A founder abroad will usually pay for a registered office service and may pay an ACSP for identity verification, because they cannot rely on a UK home address or easy access to UK services. They should also budget for exchange costs if the company is funded from naira: the rate and the fee on each conversion add up over a year.
Ways to keep year one lean
- File online: the paper fees are higher.
- Avoid same-day incorporation unless you need it.
- Use your UK home as the registered office if you are content for the address to be public.
- Agree a fixed fee with the accountant, with what is included in writing.
Mistakes that cost money
- Missing the confirmation statement or accounts deadline; see late filing penalties for what that costs.
- Mixing personal and company money, which makes the accountant's job longer and the bill bigger.
- Forgetting that company money is not yours: taking it out without salary or dividends creates a director's loan.
- Not setting aside tax from the first profitable month.
Where Pryme fits
A Pryme Business Account holds pounds and naira together and can be opened from any country. The Finance agent prepares a monthly view of spending against your budget for you to review.
Questions people ask
How much does it cost to set up a UK limited company?
£100 to incorporate by software from 1 February 2026, £156 same-day, or £124 on paper, according to Inform Direct's summary of the Companies House fees.
How much is a confirmation statement now?
£50 filed digitally and £110 on paper from 1 February 2026.
Do I need an accountant for a UK limited company?
It is not a legal requirement, but the company must file accounts and a Corporation Tax return. Most first-time founders pay for help.
What Corporation Tax will a small company pay?
GOV.UK lists 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between.
Sources
- Inform Direct: Companies House fee changes from 1 February 2026 (29 Dec 2025) · accessed Oct 2026
- GOV.UK: Companies House fees (updated 25 Sep 2026) · accessed Oct 2026
- GOV.UK: Corporation Tax rates (updated 23 Oct 2026) · accessed Oct 2026
- GOV.UK: Small business rate relief (updated 20 Oct 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.