Choosing an accountant
Do I need an accountant for a limited company?
By Kaiser Khan · Updated · 2 sources checked
What does the law actually require for a limited company?
A UK limited company must file annual accounts, a CT600, a confirmation statement, and keep records for six years. None of those filings legally require an accountant — a director can do them. An audit is only mandatory once a company passes the size tests, so almost no small company needs one.
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. 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. Late accounts penalties start at £150 and can double on repeat offences.
Why do most directors use an accountant anyway?
Company accounts must follow accounting standards and corporation tax has traps — capital allowances, director's loan rules, dividend paperwork. An accountant typically costs £83–£227 a month for a micro company on our benchmarks, which is usually less than one missed filing or relief.
Most directors also need a personal self assessment return for dividends. Ask whether that is in the company package or an add-on of about £10–£25 a month.
When is DIY realistic for a limited company?
A dormant company, or a very simple one-person company with low turnover, no VAT, and no payroll, can self-file using HMRC and Companies House plus software. The moment you register for VAT, hire staff, or turnover grows, the DIY time cost usually overtakes the fee.
You can switch to an accountant later, including mid-year. Expect a rush fee close to a deadline. The new firm requests records through professional clearance.
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.
Sources
- GOV.UK — Corporation tax · checked 2026-07-17
- Pick My Accountant methodology · checked 2026-08-31
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.