Limited company FAQ
Can I do my own limited company accounts?
Yes, it is legally allowed. The real question is whether your company is simple enough to file confidently yourself, or complex enough that an accountant saves you more than the fee.
Weigh it up
DIY accounts: the trade-offs
- Statutory accounts must follow FRS 105 or FRS 102 format, not a simple profit and loss.
- Companies House and HMRC penalties start automatically the day you are late.
- Reliefs and allowances are easy to miss without knowing what to look for.
- It is legally allowed, there is no requirement to use an accountant.
- Software can guide you through the filing mechanics if your company is very simple.
- Dormant companies with no transactions have a much simpler filing.
Questions
DIY limited company accounts, answered
Can I do my own accounts for a limited company?
Yes, there is no legal requirement to use an accountant. You can prepare your own statutory accounts and file them, along with your Corporation Tax return, directly with Companies House and HMRC. In practice most directors find it complex once there is real trading activity, statutory accounts follow a specific format (FRS 105 or FRS 102), and mistakes or late filing bring automatic penalties.
Is it hard to do limited company accounts yourself?
For a dormant company with no transactions, it is straightforward. For a trading company, it gets complicated quickly: you need to apply the right accounting standard, calculate Corporation Tax correctly including any reliefs, and file two separate sets of paperwork with Companies House and HMRC on two different deadlines. Most directors who try DIY accounts for an active company end up needing help to get it right.
What software can I use to file my own accounts?
HMRC and Companies House both offer free online filing services suitable for very small, simple companies, and commercial accounting software can also generate statutory accounts. The software handles the filing mechanics, but it will not tell you which reliefs you are missing or flag an error in your figures, that judgement still comes from experience.
What are the risks of doing my own accounts?
The main risks are getting the accounting treatment wrong, missing allowances and reliefs that would have reduced your Corporation Tax, and missing a deadline, which brings an automatic penalty from the day you are late. Errors can also trigger an HMRC enquiry, which costs far more time and stress than the accountant fee you were trying to save.
When should I stop doing my own accounts and get an accountant?
Once your company is actively trading with real income and expenses, most directors find an accountant pays for itself through reliefs claimed, penalties avoided and time saved. It is also worth getting help before your first year-end, so your accounts and Corporation Tax are structured correctly from the start rather than needing correction later.
Do dormant companies still need to file accounts?
Yes, even a dormant company with no trading activity must still file dormant accounts with Companies House every year, though the format is much simpler than for a trading company. Missing this filing still brings the same automatic penalties, so it is easy to overlook if you are not actively managing the company.
Related: when are accounts due? · do I need an accountant for a limited company?
Skip the DIY risk
We prepare your statutory accounts and Corporation Tax return, claim every relief you are owed, and file both on time. Fixed fee, no hourly billing.