Incorporation Costs Are Rising—What Freelancers Need to Know

[madtrader]

The upcoming fee increases are part of Companies House modernisation and come alongside new HMRC obligations:

Mandatory identity verification from Nov 2025

Corporation Tax and PAYE registration

VAT registration if turnover exceeds £90,000

Annual accounts filing with penalties for late submissions

Contractors should consider filing digitally to reduce costs and consult on tax and business structure planning before incorporation. The increases reflect the government’s aim to improve transparency and combat economic crime, but freelancers warn it adds to an already growing compliance burden.

[Rimon Khan]

Rising setup costs might push freelancers toward collective models or co-ops.