Do I Need an Accountant for a Limited Company?
Do I Need an Accountant for a Limited Company?
You can legally prepare and file your own limited company accounts. But should you? Discover the obligations, costs and practical trade-offs before deciding.
UK law does not generally require a limited company to appoint an accountant. Directors can manage their own bookkeeping, accounts and tax returns. However, they remain legally responsible for accurate records, filing deadlines and tax compliance, whether they use an accountant or not.
Not needing an accountant does not mean having no accounting obligations
A limited company is a separate legal entity. Even when you are its only director and shareholder, company money is not automatically your personal money. You must maintain adequate accounting records, prepare the appropriate accounts, deal with Corporation Tax and meet your filing requirements.
What you can delegate: bookkeeping, statutory accounts, tax calculations, payroll and filing administration.
What you cannot delegate: your ultimate legal responsibility as a company director.
This distinction is why the right question is often not "Must I appoint an accountant?" but "Which accounting tasks am I comfortable managing myself?"
What must a UK limited company do?
Whether you appoint an accountant or manage everything yourself, the following areas need attention. The exact requirements depend on your company's activities, size and tax registrations.
Keep accounting records
Record sales, expenses, assets, liabilities, bank transactions and supporting documents. Company financial records generally need to be retained for at least six years from the end of the relevant financial year.
Prepare annual accounts
Prepare statutory accounts under the relevant accounting framework, such as FRS 105 or FRS 102. Eligible smaller companies may use simplified reporting requirements.
File with Companies House
Submit the required annual accounts and confirmation statement. These are separate obligations with separate deadlines.
Handle Corporation Tax
Calculate taxable profits, claim eligible deductions, pay any Corporation Tax due and submit the CT600 and supporting documents when required.
Manage VAT and PAYE
Register, report and pay where applicable. Not every company needs VAT registration or a PAYE scheme, but you must assess your circumstances.
Manage director finances
Record salaries, dividends, expenses and director's loan transactions correctly. Personal Self Assessment obligations may also arise.
Doing your own company accounts vs using an accountant
There is no universally correct option. The decision depends on your financial knowledge, the complexity of your company and the value of your time.
| Consideration | DIY accounting | Using an accountant |
|---|---|---|
| Direct professional fees | Potentially lower, but software costs remain | Professional fees, often fixed or recurring |
| Bookkeeping | You maintain the records | You may still enter transactions, with support or review |
| Annual accounts | You prepare and file them | Accountant can prepare and submit them |
| Corporation Tax | You calculate and file using suitable software | Accountant can calculate and file on your behalf |
| Tax planning | Requires your own research and judgement | Advice may be available within the agreed service |
| Time commitment | Potentially substantial | Usually lower, depending on your records |
| Responsibility | Remains with the directors | Still remains with the directors |
| Best suited to | Simple companies with financially confident directors | Directors wanting specialist help or more time for their business |
Would your limited company benefit from an accountant?
Answer five questions to get a practical recommendation. This is a general guide, not a legal or tax assessment.
Four deadlines every company director should understand
These are the usual deadlines for private limited companies. Special circumstances, different accounting periods and HMRC notices can change the position.
A confirmation statement normally has its own annual review cycle and filing deadline. Corporation Tax accounting periods do not always coincide with the statutory accounts period.
HMRC's former online service for filing company accounts and Corporation Tax returns closed on 31 March 2026. Companies generally now need suitable commercial software to submit Company Tax Returns electronically, or an authorised agent to file for them.
From 1 April 2028, Companies House plans to require commercial software for accounts filing, with further changes to profit and loss reporting for small companies and micro-entities. Directors preparing accounts themselves should plan for these requirements rather than relying on older filing instructions.
Seven situations where an accountant may be particularly worthwhile
You are a first-time director
Company accounts, dividends, director's loans and Corporation Tax work differently from sole trader accounts.
You take salary and dividends
Planning the balance of remuneration and dividends can involve company and personal tax considerations.
You are VAT registered
VAT schemes, input tax recovery, Making Tax Digital and unusual transactions can add complexity.
You have substantial assets
Capital allowances, depreciation, asset disposals and accounting adjustments may require specialist judgement.
You employ staff
Payroll, PAYE, National Insurance and pension administration create additional responsibilities.
Your business is growing
Cash-flow forecasting, tax provisioning, funding decisions and management information become more valuable.
You have complex circumstances
Property companies, overseas transactions, multiple shareholders or associated companies may need tailored advice.
You do not have to choose between doing everything yourself and full outsourcing
For many owner-managed companies, the most economical arrangement is a hybrid approach: maintain your own bookkeeping throughout the year, then ask an accountant to review the figures, prepare the statutory accounts and deal with the Corporation Tax return.
A practical division of responsibilities
- Customer invoices
- Expense receipts
- Bank reconciliation
- Regular bookkeeping
- Year-end adjustments
- Statutory accounts preparation
- Corporation Tax computation and CT600
- Agreed tax and compliance advice
The exact allocation depends on your engagement terms and the services purchased.
How much does a limited company accountant cost?
Fees vary according to transaction volumes, bookkeeping quality, company complexity, payroll, VAT and the amount of advice required. A straightforward annual filing service is different from a comprehensive monthly accounting package.
Limited company accounts filing
The Online Accountants offers fixed-price company accounts and Corporation Tax filing for qualifying businesses. The entry price applies to the Small tier, subject to the published eligibility limits and service terms.
Explore Accounts Filing →See the service page for full scope, eligibility and current prices.
What to compare before appointing an accountant
- Are annual accounts included?
- Is the CT600 included?
- Is bookkeeping included or reviewed?
- Are VAT and payroll separate?
- Is tax advice included?
- Are software fees extra?
- Who will be your contact?
Example: A one-director consultancy company
Imagine a consultant running a limited company with one business bank account, 100 invoices a year, modest expenses and no employees other than the director.
The director may be perfectly capable of recording transactions in accounting software. However, the year-end still requires consideration of accruals, Corporation Tax adjustments, salary and dividend treatment, and the correct statutory accounts format.
In this situation, paying for year-end accounts and tax filing while keeping bookkeeping in-house could be a sensible compromise. By contrast, a dormant company with very straightforward reporting requirements may have less need for ongoing professional support.
Illustrative example only. Actual obligations and appropriate accounting treatment depend on individual circumstances.
Limited company accountant FAQs
Is it a legal requirement to have an accountant for a limited company?
No. UK limited companies are not generally required to appoint an accountant. Directors can prepare and file accounts themselves, provided they meet all applicable legal and reporting requirements. A statutory audit is a separate issue and may be required in certain circumstances.
Can I submit my limited company accounts myself?
Yes. You can prepare and submit your own Companies House accounts using an accepted filing method. You must use the correct accounting framework and provide the required information. Companies House is moving to mandatory software-based accounts filing from April 2028.
Can I file my own Corporation Tax return?
Yes. You can prepare and submit your own CT600, tax computations and supporting accounts using suitable commercial software. HMRC's former joint online filing service closed in March 2026. Paper filing is generally limited to specific exceptions.
Do I need an accountant if my company makes no profit?
Not necessarily. A company making a loss may still have to prepare accounts and submit a Corporation Tax return. A lack of taxable profit does not automatically remove filing obligations.
Does a dormant limited company need an accountant?
Not usually. Dormant companies generally still need to file Companies House accounts and confirmation statements. HMRC requirements depend on the company's Corporation Tax status and any notices issued. An accountant may help where dormancy is uncertain.
Does a one-person limited company need an accountant?
No. Being the sole director or shareholder does not create a legal requirement to appoint an accountant. However, company tax, director remuneration and record-keeping obligations still apply.
Can accounting software replace an accountant?
Software can automate bookkeeping, prepare reports and support tax filing. It does not automatically guarantee that transactions are classified correctly, reliefs are claimed appropriately or the company meets all its obligations. Professional judgement may still be valuable.
Do limited companies need audited accounts?
Not always. Many smaller private companies qualify for audit exemption, subject to eligibility rules and exceptions. A requirement for a statutory audit is different from choosing to hire an accountant for routine accounts and tax work.
Can I appoint an accountant just for year-end accounts?
Yes. Many companies maintain their own bookkeeping and use an accountant for annual statutory accounts, Corporation Tax calculations and filing. This can reduce costs compared with full-service outsourcing.
Can I change accountants partway through the year?
Yes. You can normally appoint a new accountant at any time. The new adviser may request professional clearance and relevant accounting records, subject to appropriate authorisations and engagement arrangements.
Related guides and accounting services
Guide reviewed: October 2026. General information for UK private limited companies, not personalised legal or tax advice. The Online Accountants is a trading name of Parkinson (UK) Limited.