Tax & compliance
Can I do my own limited company accounts?
By Pick My Accountant Editorial · Updated 8 July 2026
What DIY filing actually involves
You'll keep double-entry records through the year, produce a balance sheet and profit and loss under FRS 105 (micro) or FRS 102 1A (small), file accounts at Companies House, then prepare a corporation tax computation — adjusting accounting profit for disallowables, capital allowances, and reliefs — and submit the CT600 with iXBRL-tagged accounts. The joint HMRC/Companies House filing service handles the simplest cases end to end.
Where directors come unstuck
The classic traps: director's loan accounts drifting overdrawn (s455 tax at 33.75%), dividends paid without distributable reserves or paperwork, expenses that are allowable for sole traders but benefit-in-kind for directors, depreciation vs capital allowances confusion, and missing the payment deadline that arrives before the filing deadline. None are obvious from the forms.
A sensible dividing line
DIY is defensible for a dormant company, or a single-director company with a handful of transactions, no VAT, no payroll, and no dividends beyond basic paperwork. Once real money moves — VAT, staff, growth, investment — the risk-adjusted cost of DIY exceeds a fixed monthly fee for most directors. A middle option: keep the books yourself, pay a firm for year-end only.
People also ask
Do I need an audit?
Almost certainly not — audits only become mandatory when a company meets two of: £15m turnover, £7.5m total assets, 50 employees (or is in certain regulated sectors). Small owner-managed companies are exempt.
What software can file CT600s?
HMRC's free joint service covers simple cases; commercial options with iXBRL tagging include TaxCalc, Taxfiler, and bridging modules in the main bookkeeping platforms. Accountants bundle this in their fee.
If I get it wrong, what happens?
Late accounts trigger automatic Companies House penalties from £150; errors HMRC treats as careless can add 0–30% of the underpaid tax on top of the tax itself. Honest mistakes corrected promptly are treated more gently.
This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.