Choosing an accountant
Do I need an accountant for a limited company?
By Pick My Accountant Editorial · Updated 8 July 2026
What the law actually requires
A limited company must file annual accounts with Companies House, a corporation tax return with HMRC, keep accounting records for six years, and submit a confirmation statement. None of these filings legally require an accountant — a director can do them all. An audit is only mandatory once a company passes two of: £15m turnover, £7.5m balance sheet, 50 employees, so almost no small company needs one.
Why most directors use one anyway
Company accounts must follow accounting standards (usually FRS 105 or FRS 102 section 1A) and corporation tax has traps — capital allowances, director's loan rules, dividend paperwork, and allowable-expense boundaries. An accountant typically saves more in avoided penalties, missed reliefs, and time than the fee, and gives you someone to call before decisions like taking dividends versus salary.
When DIY is realistic
A dormant company, or a very simple one-person company with low turnover, no VAT, and no payroll, can realistically self-file using HMRC and Companies House online services plus accounting software. The moment you register for VAT, hire staff, or your turnover grows, the DIY time cost usually overtakes the accountant's fee.
People also ask
Can I switch to an accountant later?
Yes, at any time — including mid-year or just before deadlines (expect a rush fee close to a deadline). The new firm will request records from you or your previous accountant through a standard professional clearance process.
What happens if I file late?
Companies House penalties start at £150 for accounts up to a month late, rising to £1,500 beyond six months — and they double if you're late two years running. HMRC adds separate penalties for late CT600s starting at £100.
Does my accountant handle my personal tax too?
Most limited company packages include the director's personal self assessment return, but check — some firms charge it as an add-on of £10–£25 per month.
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.