Starting a business after leaving the forces
To start a business after leaving the forces, use your resettlement support early, test the idea, write a simple business plan, and register with HMRC as a sole trader or with Companies House as a limited company. Start Up Loans and free forces mentoring can help, and free verification helps customers find you.
By Stephen James, Founder & Chairman, British Veteran Owned
Published 27 September 2026 · Last reviewed 27 September 2026
When should I start planning a business before I leave?
Start planning as soon as your resettlement window opens. The Career Transition Partnership, the official resettlement service for the armed forces, supports service leavers from two years before discharge until two years after. That time lets you attend self-employment workshops, fund training and test your idea while you still have a salary.
The Career Transition Partnership (CTP) is delivered for the Ministry of Defence by Reed in Partnership. What you can access depends on your length of service. Personnel with over six years’ service get the Core Resettlement Programme, those with four to six years get the Employment Support Programme, and early service leavers get CTP Future Horizons.
Your Service Resettlement Adviser is the best first contact. They can explain your entitlement and book workshops.
What resettlement support is there for self-employment?
The Career Transition Partnership runs a one-day Self-Employment Awareness Workshop, delivered by X-Forces Enterprise, which covers the key elements of starting a business and the support available. X-Forces Enterprise also offers fully funded enterprise training and mentoring to service leavers, veterans, reservists and their families after they leave.
Other free options include Heropreneurs mentoring from the Forces Employment Charity, and self-employment advice from The Poppy Factory for veterans with health conditions.
Can I use learning credits for business training?
Yes, if the course leads to a recognised qualification. Enhanced Learning Credits pay towards courses at Level 3 or above, with claims of £1,000 or £2,000 depending on service, and you contribute at least 20% of the fees. You must have registered for the scheme during service and use an approved provider.
Useful qualifications for new business owners include bookkeeping, project management, health and safety, and trade-specific certifications. Check the ELCAS website for approved providers before you commit.
How do I test my business idea and write a plan?
Test your idea by talking to potential customers and checking what competitors charge before you spend money. Then write a short business plan covering what you sell, who buys it, your prices, your costs and a cash-flow forecast. A plan and forecast are required for a Start Up Loan.
Your military experience is an asset here. Planning, logistics and working to a deadline all transfer directly. What many veterans find new is sales: asking for the order and following up. A mentor can help with that.
How do I register a business with HMRC or Companies House?
Most new businesses start as a sole trader or a limited company. As a sole trader you register for Self Assessment with HMRC, which you must do if you earn over £1,000 in a tax year. A limited company must be registered with Companies House before it trades and then pays Corporation Tax on profits.
You may also need to register for VAT if your turnover passes the threshold. An accountant can help you choose the right structure; GOV.UK has step-by-step guidance for both.
| Sole trader | Limited company | |
|---|---|---|
| Register with | HMRC for Self Assessment | Companies House, then HMRC for Corporation Tax |
| Personal liability for debts | You are personally responsible | Limited to your investment in the company |
| Paperwork | Annual Self Assessment tax return | Company accounts, confirmation statement and Corporation Tax return |
How can I fund a new business as a veteran?
The main source of start-up finance for veterans is a government-backed Start Up Loan of £500 to £25,000 with 12 months of free mentoring, delivered in the forces community by X-Forces Enterprise. Forces charities may fund training or equipment. Our grants and funding guide lists the options we have checked.
How do I get customers to find my veteran-owned business?
Get your business verified by British Veteran Owned. Verification is free, a real person reviews your evidence of service, and approved businesses are listed in the national directory with the hallmark. Buyers and consumers who want to support veterans use the directory to find suppliers, from local trades to national brands.
Apply at /verification. Once approved, your profile appears in the directory. You can also choose to offer a discount to the forces community.
How to start a business after leaving the armed forces
- Speak to your resettlement adviser. Contact your Service Resettlement Adviser to confirm your Career Transition Partnership entitlement, ideally two years before discharge.
- Attend a self-employment workshop. Book the Self-Employment Awareness Workshop delivered by X-Forces Enterprise on behalf of the CTP.
- Fund relevant training. Use Enhanced Learning Credits or resettlement funding for qualifications that support your business.
- Test the idea and write a plan. Talk to potential customers, check competitors and write a business plan with a cash-flow forecast.
- Register the business. Register for Self Assessment with HMRC as a sole trader, or register a limited company with Companies House.
- Arrange funding and mentoring. Apply for a Start Up Loan through X-Forces Enterprise and consider free mentoring from Heropreneurs.
- Get verified and listed. Apply for free verification with British Veteran Owned so customers can find you in the national directory.
Frequently asked questions
- Can I start a business while still serving?
- If you are still serving, check the rules on outside business interests with your chain of command and Service Resettlement Adviser before you start trading.
- Is resettlement support available if I left years ago?
- Career Transition Partnership support usually runs until two years after discharge. After that, veterans can still use X-Forces Enterprise, Heropreneurs mentoring and Start Up Loans.
- Do I need a limited company to be listed by British Veteran Owned?
- No. Sole traders, partnerships and limited companies are all eligible, provided the business is majority-owned by an eligible veteran, reservist or family member.
- Is British Veteran Owned verification free?
- Yes. Verification and listing are free for every eligible business, with no tiers or paid upgrades.
Verified veteran-owned businesses get the hallmark and a free listing in the national directory.
Get verified — freeSources
- Career Transition Partnership (GOV.UK)
- CTP workshops and webinars (Career Transition Partnership)
- Enhanced Learning Credits (Ministry of Defence)
- Set up as a sole trader (GOV.UK)
- Set up a limited company (GOV.UK)
- X-Forces Enterprise (X-Forces Enterprise)
- Heropreneurs (Forces Employment Charity)