No, it is not a legal requirement to have an accountant for a UK limited company. You can prepare and file everything yourself. In practice, though, most directors do use one, because a limited company has more filing obligations than a sole trader, the penalties for getting them wrong are real, and a good accountant usually saves more tax than they charge.
So the honest answer is: you can do it alone, but you probably shouldn't unless your company is genuinely simple and you're comfortable with the deadlines below.
Is it a legal requirement to have an accountant?
It is not. Companies House and HMRC do not require a limited company to appoint an accountant. The only situation where you legally need a qualified third party is an audit, and most small companies are exempt from that.
For the 2026/27 year, your company qualifies for audit exemption if it meets at least two of: turnover under the small-company threshold, balance-sheet total under the threshold, and 50 or fewer employees. The vast majority of owner-managed companies are exempt and never need an auditor.
What you cannot avoid is the responsibility itself. As a director you are legally on the hook for filing accurate accounts and returns on time, whether or not you pay someone to do the work. Companies House sets this out plainly: directors can be fined, prosecuted or disqualified for failing to meet these duties.
What a limited company actually has to file
This is the real reason most directors hire help. A limited company juggles several deadlines with several different bodies:
- Annual accounts to Companies House, within 9 months of your accounting reference date.
- Company Tax Return (CT600) to HMRC, within 12 months of your accounting period end.
- Corporation Tax payment, due 9 months and 1 day after your period end (earlier than the return itself).
- Confirmation statement to Companies House, at least once a year.
- Payroll (PAYE/RTI), every time you pay yourself or staff, if you run a salary.
- VAT returns, quarterly, if you're registered.
Miss the accounts deadline and the automatic late-filing penalty starts at £150 and climbs to £1,500 the longer you leave it. Miss the tax return and HMRC adds its own penalties on top.
Corporation Tax in 2026/27
Your company pays the small profits rate of 19% on profits up to £50,000. Above £250,000 the main rate is 25%, with Marginal Relief tapering the rate between those two figures. Getting your allowable expenses, capital allowances and director's remuneration right is where an accountant earns their fee.
When you probably do need an accountant
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You should seriously consider one if any of these apply:
- You pay yourself a salary-plus-dividend mix and want it optimised. For 2026/27 the personal allowance is £12,570, higher-rate tax starts at £50,270, the additional rate at £125,140, and the dividend allowance is just £500, a tight margin where small mistakes cost real money.
- Your turnover is near the £90,000 VAT registration threshold and you need to plan around it.
- You have staff, a company car, pensions, or R&D claims.
- You simply don't have the hours, and the deadlines above make you nervous.
For a fuller breakdown of the obligations and how we handle them, see our limited company accounting service.
When you might be fine doing it yourself
A DIY approach can work if your company is genuinely simple: one director, no employees, low transaction volume, no VAT, and a steady salary-and-dividend setup you understand. HMRC and Companies House both offer free online filing, and bookkeeping software can prepare micro-entity accounts.
Be realistic about the trade-off. The software won't tell you the most tax-efficient split between salary and dividends, won't spot a missed capital allowance, and won't represent you if HMRC opens an enquiry. Many directors who start DIY switch to an accountant within their first two years.
How much does an accountant cost for a limited company?
For a small UK limited company, expect roughly £60-£150 a month depending on turnover, VAT, payroll and how much bookkeeping is included. A fixed monthly fee covering year-end accounts, the CT600, the confirmation statement and director's self assessment is the most common model, and predictable, which is the point.
Weigh that against the tax an accountant routinely saves through proper expense claims, allowances and a sensible profit-extraction strategy. For many companies the service is close to cost-neutral, and that's before you count the avoided penalties.
The short version
- Legally required? No, except for an audit, which most small companies are exempt from.
- Recommended? For the majority of limited companies, yes.
- DIY viable? Only for very simple, single-director companies with time and confidence.
Still unsure where you sit? Our FAQ answers the most common questions on switching accountants, deadlines and what's included.
If you'd rather not spend your evenings wrestling with the CT600 and a confirmation statement, talk to a Zmartly accountant. We'll tell you honestly whether you need us, and if you do, we'll handle every deadline above for a fixed monthly fee.
