There's no legal requirement for a UK limited company to use a professional accountant. But the question of whether you need one and whether it's worth it aren't quite the same. This article gives you a straight answer.
The legal position
No law requires a limited company to hire a professional accountant. You can prepare and file your own annual accounts, CT600, self assessment, VAT returns, and payroll yourself - assuming you know how.
However, the accounts you file with Companies House must comply with UK GAAP (FRS 102 or FRS 105 for micro-entities), and the CT600 must correctly calculate your tax liability including capital allowances, deferred tax, and any reliefs. These aren't simple documents.
The obligations a limited company faces each year
Here's what needs to happen annually for a typical small limited company:
- Annual accounts - filed at Companies House within 9 months of year end. Late = automatic fine (starts at £150).
- Corporation tax return (CT600) - filed with HMRC within 12 months. Tax paid within 9 months and 1 day.
- Director's self assessment - due 31 January annually. Required for all directors regardless of income level.
- Payroll (RTI) - monthly submissions to HMRC if paying any salary. Every payment must be reported on or before payday.
- VAT returns - quarterly MTD submissions if registered. Penalty points for late returns.
- Confirmation statement - annual filing at Companies House confirming company details.
That's a significant recurring compliance workload. Miss any of them and you face penalties.
What does doing it yourself actually involve?
If you want to handle your own accounts, you'll need to understand:
- Double-entry bookkeeping (or software that handles it)
- How to produce statutory accounts that comply with FRS 105 or FRS 102
- Corporation tax computation - adjusting accounting profit for tax purposes, claiming capital allowances, handling timing differences
- Making Tax Digital (MTD) compliance for VAT
- PAYE and RTI payroll submissions
- The interaction between salary and dividends for tax efficiency
It's possible - but it takes real knowledge and time. Software (QuickBooks, FreeAgent, Xero) helps with the data entry and basic reports, but it doesn't understand your situation or check that you're doing things correctly.
When it's probably worth getting an accountant
In most situations, a limited company owner benefits from professional help because:
- You save more than you pay. A good accountant ensures you claim all allowable expenses and structure salary/dividends efficiently. The tax saving often exceeds the fee.
- Deadlines are non-negotiable. Late filing costs money. An accountant ensures nothing is missed.
- The compliance is handled. You run your business; someone else handles HMRC.
- Mistakes are expensive to fix. An incorrect CT600 or set of accounts needs amending - which takes time and sometimes professional fees to correct retroactively.
When you might manage without one
A handful of situations where you might reasonably self-manage:
- You have an accounting qualification and understand the compliance requirements
- Your company is dormant (no trading activity) - accounts and returns are simple
- Your affairs are genuinely simple and you're willing to spend several days per year learning and completing filings
For the vast majority of trading limited companies, the time cost and risk of errors outweigh the saving of not using an accountant - especially at modern fixed-fee prices.
How much does it actually cost?
Fixed-fee limited company accounting packages typically run £80–£150 per month from online-first firms. At Surfleet, our Ltd Essentials plan is £100/month and covers everything: accounts, CT600, self assessment, payroll, and VAT. That's around £1,200 per year - typically less than the tax saving from proper advice in year one alone.
See our full pricing → or book a free call to discuss your situation →