You’ve landed in the UK, fresh off the journey outlined in Part One: Before the Move, where we covered visas, market research and mental prep. Now, the real adventure begins. Setting up and scaling in the UK is thrilling but packed with challenges many Australian founders overlook. From bank delays to compliance hurdles, this guide unpacks what’s next, offering practical tips to thrive.
With partners like Standard Ledger, you’re not alone.
Getting Operational
Setting up a UK entity, typically a private limited company, is step one. Register with Companies House by choosing a company name, appointing directors and filing documents—often done in 24 hours. No UK resident director is needed, but you must have a UK registered office address, which services like Regus or Standard Ledger can provide.
Opening a bank account, however, can take 2–8 weeks due to strict KYC checks. Sidestep delays with digital platforms like Airwallex or Revolut, which offer multi-currency accounts and fast setup.
VAT registration kicks in if your turnover exceeds £90,000 or you want to reclaim VAT on expenses. HMRC’s rules require proof of trading, which can be tricky. Ensure your CRM (e.g. HubSpot) or invoicing system syncs with UK-compatible accounting software like Xero to comply with HMRC’s Making Tax Digital (MTD) rules. Non-UK CRMs may not generate compliant invoices, forcing time-consuming manual entries.
Partners like Standard Ledger streamline setup and connect you to client networks, such as Tech Nation, to spark early deals.
Hiring & Building a Team
Hiring in the UK’s competitive hubs like London or Manchester demands strategy. Your first hire should be a sales star—someone who closes deals, networks at events like London Tech Week and builds client relationships to drive revenue fast. Technical talent can wait; cash flow can’t.
Budget for National Insurance and automatic enrolment pensions, mandatory for most businesses. The National Employment Savings Trust (NEST) is a low-cost default scheme, requiring 3% employer contributions (5% from employees) for eligible staff (aged 22 to state pension age, earning over £10,000). Perks like private healthcare may be needed to compete.
UK employment laws, stricter than Australia’s, mandate 28 days’ holiday and robust maternity leave. Cultural norms favour formal contracts, unlike Australia’s casual startup vibe. Tools like BambooHR can keep you compliant while you build a revenue-focused team.
One Australian founder hired a technical lead first, only to struggle with cash flow. Switching to a sales-driven hire brought in £50,000 in contracts within three months, stabilising the business.
Cash Flow Realities
Cash flow is a tightrope. UK revenue lags due to long sales cycles, while expenses—rent, salaries, setup—mount. Here’s what to watch:
- Currency Risks: Australian dollar-pound fluctuations can cut margins. Airwallex or Revolut’s hedging tools help stabilise funds.
- Client Payments: Some clients use Amex (1.9–3% fees) for 56-day interest-free terms or cheques, which clear in 5–7 days. Price these delays into contracts.
- Funding Strategy: Recharging UK staff costs to Australia suits short-term projects (e.g. a three-month trial), while intercompany loans fit long-term setups. Both need transfer pricing agreements to satisfy HMRC and ATO.
Standard Ledger’s cross-border expertise models cash flow, manages currency risks and ensures compliant fund transfers, keeping your Australian and UK operations in sync.
Compliance Surprises
UK compliance is relentless. Payroll requires HMRC registration, PAYE tax calculations and Real Time Information (RTI) reports per pay cycle—errors mean fines. Corporation tax filings need detailed records, especially for R&D tax credits, a lifeline for tech startups.
GDPR demands strict data handling, with penalties up to £17.5 million for breaches. HMRC’s Making Tax Digital rules mandate digital records, so your accounting software must sync with invoicing to avoid manual journals.
One founder used a US-based CRM, spending hours on manual VAT entries. Switching to Xero saved 10 hours monthly and ensured HMRC compliance.
Unlike Australia’s simpler tax system, the UK’s rules demand vigilance. Standard Ledger’s compliance services handle these burdens, freeing you to grow.
Support Network
Isolation hits hard when juggling business and homesickness. The UK’s startup scene—London, Bristol, Manchester—buzzes with accelerators like Seedcamp and meetups via Meetup.com. Your sales hire should network at these, turning contacts into contracts.
Strategic partners like Standard Ledger connect you to legal experts, recruiters and industry insiders for client introductions. Programs like the Global Entrepreneur Programme offer government-backed support. A strong network fuels growth and keeps you grounded.
Join us at the Moving to the UK event to meet founders and advisors who’ve been there—your network starts here.
Wrap Up
Landing in the UK is just the beginning. From securing a registered office to hiring sales talent and navigating NEST pensions, success demands planning and partners. With the right moves, your UK venture will thrive.
As Michael Budnow from Standard Ledger says:
“The UK is a goldmine for Australian founders, but it’s a marathon. Get compliance, cash flow and networks right and you’ll build something unstoppable.”
Ready to scale? Book a free UK setup consultation.
