Last Updated on April 29, 2026 by Joy Kyalo
When is the best time to start a business? This is what most entrepreneurs ask themselves when planning a new venture. While there is no perfect moment, it is always a good time to start a business in the UK. However, it is important to understand how timing and seasonal trends can influence sales and marketing traction.
The time you choose to incorporate your company can impact how your business enters the market. Finance is one of the most important aspects of starting a business, as it forms the foundation and supports long-term growth.
With recent changes at Companies House, there are a few important factors to consider before starting a business in the UK. Incorporation fees have increased by 100%, with digital registration rising from £50 to £100 and the confirmation statement fee increasing from £34 to £50, effective from 1 February 2026.
These changes are part of the Economic Crime and Corporate Transparency Act (ECCTA) 2023, which introduces new measures to improve transparency and reduce fraud in the corporate sector. This article highlights the best time to start a business in the UK and the key factors to consider.
Key Takeaways
- There’s no perfect time to start a business, but timing still impacts success.
- Companies House fees have increased, making cost planning more important.
- Market demand and proper funding are key to business survival.
- Season and tax timing can influence growth and financial efficiency.
Factors to consider when choosing the best time to start a business in the UK
Finances
Money is essential when incorporating a company because it is required for initial setup costs, ongoing operations, growth investments, and establishing financial credibility. Without adequate funding, even the best business plans can fail.
With the recent increase in incorporation fees, many entrepreneurs are choosing to set up their companies sooner rather than later. Companies House has increased incorporation fees by 100%, meaning that from February 2026, business owners will pay significantly more than they do currently.
If you are planning to start a business, this is a good time to incorporate.
Currently, the cost of incorporating a UK limited company varies depending on the method of application, including online registration, paper filing, and same-day incorporation services.
From February 2026, the cost of incorporating a UK limited company:
£100 for online registration
£124 for paper applications
£156 for same-day incorporation
Market demand
You would not want to start a business when the market is not ready for your products or services. Assess the market to understand the consumer market, what is trending, and customers’ preferences to set the business in the right direction.
When there is no demand in the market, it means your business will not succeed or last in the market. A thorough market search will help you understand the target market, understand your competitors, understand the value proposition, and understand what customers are willing to pay.
UK tax year
The UK tax year runs from 6 April to 5 April the following year. But how does the UK tax year affect the time to start a business? Business registration will definitely affect the accounting period, since the date of incorporation determines the initial deadline for tax registration and filing.
For sole traders, they must register for Self-Assessment by 5th October in the second tax year of the business.
Limited companies’ financial year starts from the date of incorporation. For Corporation Tax, limited companies must register within 3 months of starting to trade, and file returns and accounts based on their company’s year-end (12 months).
When incorporating a limited company, you have the flexibility to choose your accounting period, which affects when your statutory records and tax payments are due. Launching a business when taxes are a hot topic is essential, as it will help you not forget to pay taxes and incur penalties.
Seasons
Seasons play a big part in company registration, as there are months that are slow in terms of business. It is essential to understand how the market operates during different seasons. Spring is considered the best season to start a business, as business owners can take full advantage of the new tax year in the UK, which begins in April.
According to The Aldermore Future Attitudes study, UK small businesses launched in the Spring tend to do better than companies launched in other seasons. Spring is also considered the season of increased funding opportunities, such as new fiscal year budgets and grants.
Additionally, spring also aligns with several holidays such as Valentine’s Day, Mother’s Day, and Easter, which can drive sales and boost engagement.
Summer is considered by many as downtime season; however, some businesses can be launched during this season and succeed. The summer season is considered a time to travel, attend events, and leisure. Businesses such as travel agencies, event planning, and hospitality can naturally peak during this season.
Autumn is considered one of the busiest seasons, as it marks the start of the Christmas rush. Businesses that depend on Q4 strength, such as retail, consumer-focused technology, shipping and logistics, hospitality, and advertising, can be launched and take advantage of the wave.
Winter is considered a quiet time for businesses to refocus and set their goals.
It is essential to consider the factors mentioned above to ensure you incorporate your business at the right time. However, with the increase in Companies House fees, it may be beneficial to incorporate sooner rather than later to avoid higher costs.
By 1 February 2026, business owners will pay double the current online incorporation fee, increasing from £50 to £100. The new fees will be £100 for digital incorporation, £124 for paper applications, and £156 for same-day incorporation. Fees for filing statutory records have also increased to support Companies House in improving transparency and accountability within the public register.
BusinAssist offers a seamless company incorporation service aligned with the latest Companies House fee structure. If you need guidance on the updated pricing or support with setting up your company, you can contact us at info@businassist.com
FAQs
Q: Can you start a business while working full-time in the UK?
Ans: You can start a business while working full-time in the UK; however, it is essential to check if there are any clauses in the employment contract about a second job or conflict of interest. In addition to your regular PAYE income, you will need to pay tax on your business profit through Self-Assessment.
Q: Can you start two businesses at the same time?
Ans: There are no specific rules or limits on the number of businesses they can start. You can start two businesses at the same time as long as you legally maintain them to meet the legal requirements.
Q: Is it a good time to start a business?
Ans: Financially, it remains a relevant time to start a business, even after Companies House increased fees for incorporation and related services. As of 1 February 2026, online company incorporation costs £100 (previously £50), while paper applications now cost £124 (previously £71).
Q: How to start a business for the first time?
Ans: To start a business for the first time, the business owner must ensure to do their research and due diligence to understand how the market works and the competitors.
Q: How much time does it take to start a business?
Ans: Starting a business in the UK can be quick, depending on the method of incorporation. You can incorporate a company in one business day online; however, a postal application can take 8 to 10 working days.
Q: Should I start a business during an economic recession?
Ans: Starting a business during an economic recession is far from ideal if your main aim is to instantly grow and make profits. While there are no restricted periods to launch a business, some businesses may do well if launched during a recession.
Joy is a content writer at BusinAssist with 6+ years of experience in content marketing and social media strategy. She specialises in company formation and virtual operations, guiding entrepreneurs through global markets with clarity, drawing on her marketing and PR background. Business Assist with BusinAssist – your business success partner.