The short answer
No law says you must hire an accountant for a UK limited company, but you are legally responsible for filing accurate statutory accounts, a Corporation Tax return, a confirmation statement and your own Self Assessment return on time. Most directors use an accountant because mistakes and late filings lead to penalties, and a good one usually saves more than they cost.
Checked 11 November 2026. Rates for 2026/27.No law says you must hire an accountant for a UK limited company, but you are legally responsible for filing accurate statutory accounts, a Corporation Tax return, a confirmation statement and your own Self Assessment return on time. Most directors use an accountant because mistakes and late filings lead to penalties, and a good one usually saves more than they cost.
Key takeaways
- There is no legal requirement to use an accountant, but the director is personally responsible for every filing and deadline.
- You must file annual accounts, a CT600 tax return, a confirmation statement and a personal tax return, and possibly VAT and payroll.
- Late accounts penalties start at £150 and rise to £1,500 for a private company.
- DIY can work for very simple companies, provided you use good software and keep records.
- Fixed-fee online accountants start from £45.83 + VAT per month, making professional help affordable.
What the law actually requires
The Companies Act and HMRC rules place duties on the company and its directors, not on an accountant. A private limited company must prepare annual accounts that give a true and fair view and file them at Companies House. It must file a Corporation Tax return (the CT600) with HMRC, pay any tax due, file a confirmation statement every year and keep accounting records. Directors must also file their own Self Assessment return.
You can do all of this yourself. However, you cannot hand the responsibility to someone else. Even if you hire an accountant, you remain legally responsible as a director for making sure the filings are correct and on time. See our guide to limited company accounts and when they are due for the detail.
The jobs a company has to get done each year
| Task | Who it is for | Typical deadline |
|---|---|---|
| Statutory annual accounts | Companies House | 9 months after year end |
| Corporation Tax return (CT600) | HMRC | 12 months after year end |
| Corporation Tax payment | HMRC | 9 months and 1 day after year end |
| Confirmation statement | Companies House | Every 12 months |
| Self Assessment return | HMRC (personal) | 31 January after the tax year |
| VAT returns, if registered | HMRC | Usually quarterly |
| Payroll, if you pay a salary | HMRC | Monthly or each pay date |
Our director tax calendar shows how these fit together across a year.
When you can reasonably do it yourself
Some directors manage perfectly well without an accountant. This is usually the case when the company is very simple: one director, no employees, no VAT registration, a handful of transactions, no property or complicated assets and a clear understanding of tax. In that case, cloud accounting software can produce the accounts and the tax return, and you can file them yourself using HMRC and Companies House online services.
If you go down this route, you need good habits. Keep digital records of every invoice and receipt, reconcile the bank account monthly and set aside money for tax as you go. Our guides on bookkeeping for limited companies and the best accounting software for UK limited companies are a good starting point.
When an accountant becomes worth paying for
As soon as things stop being simple, the value of an accountant rises quickly. These are the common triggers.
- You register for VAT and need to file returns through Making Tax Digital software.
- You employ staff or want to pay yourself a salary through payroll.
- You are deciding between salary, dividends and pension contributions.
- You own property, use a company car or have large assets and capital allowances.
- You have an overdrawn director’s loan account or other unusual transactions.
- You are selling, closing or restructuring the company.
- You receive a letter from HMRC or Companies House that you do not understand.
What mistakes cost
The financial penalties for getting it wrong are not small. Late statutory accounts at Companies House for a private company are fined £150 if up to one month late, £375 if up to three months, £750 if up to six months and £1,500 if more than six months late, and the fine doubles if you are late two years running. A late Corporation Tax return carries an automatic £100 penalty, rising if it stays outstanding. On top of that sit interest, VAT penalties and personal Self Assessment penalties.
Mistakes in claims can also be expensive. Claiming personal expenses as business costs or paying an illegal dividend can lead to tax adjustments and penalties. Read our list of common accounting mistakes limited company directors make to see how easily it happens.
What an accountant adds beyond compliance
A good accountant is not just a form-filler. They help you pay the right amount of tax, not more, by advising on how to take money out of the company, when to buy equipment, how to use pensions and whether VAT schemes suit you. They also give you a second pair of eyes on your books and can warn you about problems before HMRC finds them. Many directors find the peace of mind alone worthwhile.
For more on the practical side, see what a limited company accountant actually does.
What does it cost?
Traditional high-street firms often charge by the hour or quote one-off fees for accounts and tax returns. Online accountants offer fixed monthly packages. Ours start at £45.83 + VAT a month for Essential, £62.50 for Complete and £75.00 for Growth. You can compare options on our fees page. For an overview of running costs, read how much it costs to run a limited company.
When you compare quotes, check what is included. Some firms charge extra for VAT returns, payroll, Self Assessment or answering HMRC letters, which can turn a cheap headline price into a costly one.
How to decide
- List what the company has to file this year and what you are confident doing.
- Estimate the time you will spend, and what that time is worth to you.
- Consider the penalties and tax at stake if you get something wrong.
- Ask for a fixed-fee quote and compare it with your estimate.
- Choose an accountant who specialises in limited companies. Our guide to choosing a limited company accountant shows what to look for.
The bottom line
You do not legally need an accountant, but you do need accurate accounts, returns and payments on time, and the responsibility is always yours. For most directors, a specialist fixed-fee accountant saves time, avoids penalties and often pays for themselves through better tax planning.
Frequently asked questions
Is it a legal requirement to have an accountant for a limited company?
No. But directors are legally responsible for accounts, tax returns and filings, and many hire an accountant to get them right.
Can I do my own limited company accounts?
Yes, if your company is simple and you use accounting software and keep good records, though you take on the risk of errors.
What are the penalties for filing late accounts?
£150, £375, £750 or £1,500 for a private company depending on how late, doubling if late in consecutive years.
How much does a limited company accountant cost?
Fixed monthly packages start from £45.83 + VAT, while traditional firms may charge more depending on the work.
When should I hire an accountant?
When you register for VAT, hire staff, pay yourself a salary and dividends, hold assets or property, or receive HMRC letters you do not understand.
This article is general information, not personal tax or financial advice. Rules and rates change, so check GOV.UK or speak to an accountant about your circumstances. Rates shown are for 2026/27, last checked November 2026.