Do I Need an Accountant as a Limited Company

Find out if a UK limited company must use an accountant, what they can help with and when it makes sense to hire one

Setting up a limited company is a major step for many business owners. It brings added credibility, tax planning opportunities and limited liability protection. But it also comes with a range of legal and financial responsibilities. One common question is whether you actually need an accountant to run your limited company. The answer depends on your business size, complexity and confidence with financial tasks.

This article explains when you are legally required to use an accountant, when it might be a smart investment and what your options are if you want to keep costs down.

Am I legally required to have an accountant?

No. There is no legal requirement in the UK for a limited company to hire an accountant. As a director, you are responsible for ensuring that the company’s accounts and tax returns are accurate and submitted on time. If you feel confident enough to handle these duties yourself, you are allowed to do so.

However, many directors do choose to appoint an accountant to help with bookkeeping, compliance and tax planning, especially as their business grows or becomes more complex.

What responsibilities do I have as a company director?

If you run a limited company, you must:

  • Maintain accurate and up-to-date financial records

  • File annual accounts with Companies House

  • Submit a Company Tax Return (CT600) to HMRC

  • Pay corporation tax on profits

  • Submit a confirmation statement to Companies House

  • Run payroll if you pay yourself or employees

  • Handle VAT if your turnover exceeds the threshold or if you register voluntarily

These tasks are your legal responsibility, even if you hire an accountant to help with them.

When might I need an accountant?

You might benefit from working with an accountant if:

  • You do not have the time or skills to manage company finances

  • You are unsure about allowable expenses, salary versus dividend structures or tax rules

  • Your business is growing or you plan to take on staff

  • You want to reduce your tax bill legally through better planning

  • You need help registering for VAT, PAYE or setting up payroll

  • You want reassurance that your accounts are correct and compliant

An accountant can also advise on director’s loans, capital allowances and other areas that are often misunderstood.

What can an accountant help with?

  • Bookkeeping and monthly reconciliation

  • Preparing and filing your year-end accounts

  • Submitting your corporation tax return

  • Running payroll and producing payslips

  • Preparing dividend paperwork and board minutes

  • VAT registration and returns

  • Business planning and forecasting

  • Advice on tax-deductible expenses and efficiency

Some also offer registered office services, company secretarial support and help with company formation.

What if I want to do it myself?

If you are comfortable with numbers and have a straightforward business, it is possible to manage your own accounts using cloud accounting software. Popular platforms include Xero, QuickBooks and FreeAgent, which are designed to help you track expenses, issue invoices, reconcile transactions and generate reports.

Even if you do your own bookkeeping, you might still want to ask an accountant to check over your year-end accounts or prepare your CT600 return.

How much does an accountant cost?

Costs vary depending on the services you need and the size of your company. As a rough guide:

  • Year-end accounts and corporation tax return only: £500 to £900

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

  • One-off tax advice or director consultations: usually charged hourly or per service

Many firms offer fixed-fee packages, which help you plan costs with no hidden extras.

Can I switch accountants later?

Yes. You are free to change accountants at any time. If you start off doing everything yourself, you can bring in an accountant later when you need extra help. Most firms will handle the handover and communication with your previous accountant or software provider.

Do accountants save money in the long run?

In many cases, yes. A good accountant can help you:

  • Structure your income to pay less tax legally

  • Avoid fines and penalties by submitting returns on time

  • Reclaim allowable expenses and tax reliefs you might miss

  • Plan for cashflow, VAT bills and future investment

  • Spot errors or opportunities in your finances

For small businesses, especially where directors are juggling multiple roles, the time saved and peace of mind can more than justify the cost.

Final thoughts

You do not need an accountant to run a limited company, but most business owners find it worthwhile to have one. Whether you choose full support or just occasional advice, an accountant can help you stay compliant, make better financial decisions and avoid unexpected tax issues.

If you are confident with numbers and your business is simple, you might prefer to manage your accounts using cloud software and occasional input from a professional. But if your time is limited or you are unsure about the rules, bringing in an accountant could be one of the best business decisions you make.