Limited company FAQ

Do I need an accountant for a limited company?

No, it is not a legal requirement. But as a director you stay personally responsible for filing accurate accounts and Corporation Tax on time. Here is what an accountant actually does, and when it is worth it.

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The short answer

Legally no, practically yes for most directors

There is no legal requirement to hire an accountant for a limited company. Company directors can prepare and file their own statutory accounts, Corporation Tax return and VAT returns.

The catch is that you remain personally responsible for every figure and every deadline. Company accounts are more involved than sole trader tax, and a missed filing or a wrong entry can mean penalties from Companies House or HMRC, or simply paying more tax than you needed to. That is why most directors decide the fee is worth it.

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Worth knowing

The director is always legally liable, even if someone else files the accounts.

A qualified accountant does not remove your responsibility, but they make sure the filings are right, on time, and as tax-efficient as the rules allow.

What you would hand over

What an accountant handles for a limited company

Statutory accounts

Preparing and filing your annual accounts with Companies House in the correct format and on time.

Corporation Tax

Calculating and filing your CT600 Corporation Tax return with HMRC, and telling you what to pay and when.

Director pay

Setting up the most tax-efficient mix of salary and dividends, with payroll run and reported correctly.

Deadlines & compliance

Keeping confirmation statements, VAT and PAYE accurate and on time, so you avoid penalties.

Questions

Limited company accountant, your questions answered

Is it a legal requirement to have an accountant for a limited company?

No. There is no law that says a limited company must use an accountant. As a director you can prepare and file your own statutory accounts, Corporation Tax return and VAT returns. But you remain personally responsible for getting them right and on time, and the penalties for mistakes or missed deadlines can be costly.

Can I run a limited company without an accountant?

Yes, it is possible, and some directors do, often using software like Xero, QuickBooks or FreeAgent for the bookkeeping. The risk is that company accounts and Corporation Tax are more complex than sole trader tax, and errors can mean fines or paying more tax than you need to. Most directors find a fixed monthly fee is easily covered by the time saved and tax handled correctly.

Can I do limited company accounts myself?

Legally yes, but it takes real care. You would need to prepare statutory accounts in the right format, file them with Companies House, file a CT600 with HMRC, run director payroll, and keep on top of VAT and confirmation statements. A small error in any of these can trigger a penalty, which is why most directors prefer to hand it over.

What does an accountant do for a limited company?

A good accountant keeps you compliant and saves you money. That means filing your accounts and Corporation Tax accurately and on time, running your payroll, advising on the most tax-efficient salary and dividend split, claiming the allowable expenses and reliefs you are entitled to, and being someone you can ask before you make a decision.

When should I get an accountant for my limited company?

Ideally before you start trading, so your company, PAYE, VAT and bookkeeping are set up correctly from day one. Setting things up right at the start is far cheaper than unpicking mistakes later. If you are already trading without one, the start of a new accounting period is a natural time to bring one in.

How much does an accountant cost for a limited company?

For a small limited company, accountant fees in the UK typically run from around £150 to £400+ a month depending on turnover, VAT, payroll and how tidy your records are. We work on a fixed monthly fee so you know the cost up front, with no surprise bills. See our pricing page for what is included.

Official guidance: GOV.UK, running a limited company.

Running a limited company? Let us handle the filing.

Fixed monthly fee, accounts and Corporation Tax filed on time, and a qualified accountant you can actually reach. Tell us about your company for a quote.

Get a fixed-price quote 01296 252341