Can I Do My Own Accounts for a Limited Company

Learn if you can legally do your own accounts for a UK limited company are and what is involved in filing accounts without an accountant

Running a limited company comes with certain responsibilities, and one of the most important is handling your accounts properly. You might be wondering if you can manage this yourself without hiring an accountant. The short answer is yes, you can. But doing your own accounts is not without risk. This guide will walk you through what is involved, who it suits, and what you should watch out for.

Is it legal to do your own limited company accounts?

Yes, it is perfectly legal to prepare and submit your own accounts for a limited company in the UK. As a company director, you are responsible for ensuring your accounts and tax returns are accurate and submitted on time. There is no requirement to use an accountant, although many directors choose to do so for peace of mind and to save time.

What accounts do I need to prepare?

Every limited company must file a number of reports each year. These include:

  • Annual accounts (also called statutory accounts) to Companies House

  • Company Tax Return (CT600) to HMRC

  • Confirmation Statement to Companies House

  • PAYE submissions if you employ staff or pay yourself a salary

  • VAT returns if you are VAT registered

If you trade through your company, you must also keep accurate records of income, expenses, invoices, receipts, and bank transactions.

What does doing your own accounts involve?

To manage your accounts yourself, you will need to:

  • Keep proper bookkeeping records throughout the year

  • Track all business income and costs

  • Prepare a balance sheet and profit and loss statement

  • Make any necessary adjustments for depreciation, accruals or prepayments

  • Calculate corporation tax

  • Complete and file your company tax return and annual accounts

  • Ensure you meet all Companies House and HMRC deadlines

You can do this manually, use spreadsheet templates, or invest in accounting software such as Xero, QuickBooks or FreeAgent.

Who might benefit from doing their own accounts?

  • Sole directors with simple businesses such as freelancers or consultants

  • Those with a finance background or strong attention to detail

  • Startups looking to keep costs down in the early stages

  • Businesses with minimal transactions or no staff to manage

If your affairs are straightforward and you are confident using financial software or templates, doing your own accounts could save money and help you understand your company’s finances better.

What are the risks of doing your own accounts?

While it is possible to manage your own accounts, there are several pitfalls to be aware of:

  • Missed deadlines can lead to fines and penalties

  • Incorrect filings may trigger HMRC investigations or rejection by Companies House

  • Overstated expenses or underpaid tax can result in serious consequences

  • Failure to claim allowances such as capital allowances or R&D relief means you could pay more tax than necessary

  • Confusion around directors’ loans, dividends or payroll can cause compliance issues

Even small mistakes can be costly. Unlike with personal tax returns, company accounts are publicly available, so errors could damage your credibility with banks or suppliers.

When is it better to hire an accountant?

There are several situations where hiring a professional makes sense:

  • Your company employs staff or pays salaries

  • You are VAT registered

  • You trade internationally

  • You take dividends or have multiple shareholders

  • You are planning to borrow money or raise investment

  • You want help with tax planning to reduce your overall liability

  • You do not have time to keep up with changing tax rules

Many small companies use a mix of DIY and professional support. For example, you might keep your own bookkeeping but use an accountant to prepare and file the end-of-year accounts and tax return.

How much does an accountant cost?

Prices vary depending on the size and complexity of your business. As a rough guide:

  • Basic annual compliance only (accounts, CT600, Companies House): £500 to £900

  • Full support including bookkeeping, payroll and VAT: £100 to £250 per month

  • Specialist tax planning or advice: Charged hourly or on a case-by-case basis

Many accountants offer monthly packages for fixed fees, which can help with cashflow and budgeting.

Tips if you choose to do it yourself

  • Use reputable accounting software that supports UK tax and compliance rules

  • Keep records up to date, ideally monthly rather than leaving it all to year-end

  • Understand what counts as a business expense and what does not

  • Learn how dividends work and keep proper minutes and documentation

  • Always back up your records and store them securely

  • Set reminders for Companies House and HMRC deadlines

  • If in doubt, seek advice before submitting anything official

Final thoughts

You can absolutely do your own accounts for a limited company if you are willing to put in the time and learn the rules. Many directors do this successfully, especially when starting out. However, as your business grows or becomes more complex, the risks increase.

Whether you go it alone or hire a professional, the key is to stay organised, understand your responsibilities and never guess your way through a tax return. Getting it right protects your company and gives you the clarity you need to make better business decisions.