- May 22, 2026
- By Merranti
Do I need an accountant for my limited company?
You do not legally have to use an accountant for your limited company, but many directors should. A limited company has separate filing, tax, payroll, dividend, record-keeping and Companies House obligations. You can do some of this yourself, but mistakes can lead to penalties, missed tax relief, poor records, incorrect dividends or Corporation Tax problems.
GOV.UK’s accounts and tax returns guidance for private limited companies explains that, after the end of its financial year, a private limited company must prepare statutory annual accounts and a Company Tax Return.
GOV.UK’s Company Tax Return guidance explains that a company can either get an accountant to prepare and file the tax return or do it itself.
Merranti’s Corporation Tax guide is a useful starting point because Corporation Tax is not just based on money in the bank. It depends on taxable profit, allowable expenses, adjustments, rates and deadlines.
What does a limited company need to file?
A limited company is separate from its director.
That means the company has its own legal and tax obligations.
Most active limited companies need to deal with:
annual accounts
Company Tax Return
Corporation Tax payment
confirmation statement
payroll, if the company pays salaries
dividend records, if the company pays dividends
bookkeeping records
Companies House updates
HMRC correspondence
GOV.UK’s limited company accounts and tax return guidance explains the main filing deadlines.
Annual accounts are usually due to Companies House 9 months after the company’s financial year end.
Corporation Tax is usually due 9 months and 1 day after the accounting period ends.
The Company Tax Return is usually due 12 months after the accounting period ends.
This creates a common trap. The Corporation Tax payment deadline is earlier than the Company Tax Return filing deadline.
A director who waits until the tax return deadline may already be late paying the tax.
First-year accounts can be more complicated
The first year of a limited company often causes confusion.
GOV.UK’s first company accounts and tax return guidance explains that first accounts usually cover more than 12 months, because they start on the incorporation date and end on the accounting reference date set by Companies House.
However, a Corporation Tax accounting period cannot be longer than 12 months.
That means a company may need two Company Tax Returns for its first accounting period.
This is one of the reasons new company directors often benefit from an accountant. The company may look simple, but the first filing cycle can still be awkward.
Merranti’s Corporation Tax guide is useful here because Corporation Tax is calculated from taxable profits, not simply from the accounting profit shown in the accounts.
Can you do limited company accounts yourself?
Yes, in some cases.
A director can prepare and file limited company accounts without an accountant, provided the accounts and tax return are correct.
GOV.UK’s Company Tax Return guidance says a company can either get an accountant to prepare and file its return or do it itself.
However, “allowed” is not the same as “sensible”.
Doing the work yourself may be realistic if:
the company has very few transactions
there is no payroll
there are no dividends
there are no loans to or from directors
there are no fixed assets
there are no VAT issues
the company is dormant
the director understands bookkeeping and tax adjustments
For many trading companies, that is not the position.
Once the company pays a director, declares dividends, buys equipment, uses personal funds, owes money to directors, has mixed expenses, or grows profit, the accounting becomes more technical.
Merranti’s business expense guide is relevant because company expenses need to be reviewed carefully. A cost being paid by the company does not automatically make it tax-deductible.
The company accounts are not the same as the tax return
One mistake directors make is assuming that accounts and the Corporation Tax Return are the same thing.
They are connected, but they are not identical.
The company accounts show the company’s financial performance and position using accounting rules.
The Company Tax Return calculates taxable profit and Corporation Tax using tax rules.
GOV.UK’s Company Tax Return guidance explains that, when filing the tax return, the company works out its profit or loss for Corporation Tax, which is different from the profit or loss shown in the annual accounts.
This difference matters.
Some costs shown in the accounts may not be allowable for tax.
Some capital purchases may need capital allowance treatment.
Some director transactions may need separate treatment.
Some adjustments may be needed before Corporation Tax is calculated.
Merranti’s Corporation Tax marginal relief guide is useful for companies with profits between the small profits rate and main rate bands, because the effective Corporation Tax rate may not be the simple headline rate directors expect.
Directors often misunderstand salary and dividends
A limited company director usually extracts money through salary, dividends, reimbursed expenses, pension contributions or director’s loan repayments.
These are not interchangeable.
Salary is usually processed through payroll.
Dividends can only be paid from distributable profits.
Expense reimbursements need evidence.
Director’s loans need to be tracked.
Pension contributions need to be structured correctly.
A common error is treating the company bank account as if it were personal money.
Merranti’s guide on mixing personal and business money is relevant because limited company money belongs to the company, not automatically to the director.
Merranti’s guide on how directors accidentally create tax bills is also useful where directors borrow from the company or use the company account for personal costs.
An accountant can help keep these categories separate before they become expensive.
Dividends need proper records
Dividends are one of the areas where limited company directors often make mistakes.
A dividend is not just a transfer from the company bank account.
The company should have sufficient distributable profits, and the dividend should be properly documented.
If dividends are paid when the company does not have enough retained profit, they may be unlawful or need to be treated differently for tax and accounting purposes.
This matters because many small company directors take regular withdrawals and assume the accountant can “sort it out later”.
That is risky.
If the company has not made enough profit, or if records are poor, withdrawals may create an overdrawn director’s loan account instead.
Merranti’s director loan account guide is useful because borrowing from your own company can trigger unexpected tax charges if it is not managed properly.
Record-keeping is not optional
A limited company must keep adequate accounting records.
This includes records of income, expenses, assets, liabilities, bank transactions, invoices, receipts and supporting documents.
Merranti’s HMRC records guide explains what business records should normally be kept and why bank statements alone are often not enough.
Good records help with:
accounts preparation
Corporation Tax
VAT, if registered
payroll
dividends
loan accounts
expense claims
Companies House filings
HMRC enquiries
management decisions
Poor records usually mean more time, more corrections and more risk.
An accountant cannot reliably fix missing records if the underlying evidence is not there.
Software can help, but only if it is set up correctly. A cloud bookkeeping system with poor categories, missing invoices and unreconciled bank feeds can still produce wrong accounts.
Confirmation statements are separate from accounts
The confirmation statement is often confused with annual accounts.
They are different filings.
GOV.UK’s confirmation statement guidance explains that a company needs to check that the information Companies House holds is correct every year.
This can include registered office details, directors, shareholders, SIC code and people with significant control.
The confirmation statement is usually due a year after incorporation or a year after the last confirmation statement.
It can usually be filed up to 14 days after the due date.
GOV.UK also explains that the online confirmation statement filing fee is £50 and the postal fee is £110.
A confirmation statement does not replace the annual accounts.
A company may be up to date with its confirmation statement and still late with its accounts, or the other way around.
What if the company is dormant?
Dormant companies still have filing obligations.
GOV.UK’s dormant company guidance explains that a company must file its confirmation statement and annual accounts with Companies House even if it is dormant.
A dormant company may be able to file dormant accounts if it qualifies, but it should not simply ignore Companies House.
Dormant for Companies House and dormant for Corporation Tax are also not always the same practical question.
This is another area where directors can make assumptions too quickly.
If the company has had bank interest, expenses, transactions, asset purchases or trading activity, its dormant status should be checked before filing dormant accounts.
When an accountant is especially useful
An accountant is especially useful where:
the company is actively trading
there is payroll
the director takes dividends
the company has loans to or from directors
there are business and personal cost issues
the company is VAT registered
the company buys equipment or vehicles
profit is approaching Corporation Tax marginal relief bands
the company has employees or subcontractors
records are incomplete
the company has missed deadlines
the director wants tax planning before year end
The value is not only in filing the accounts.
A good accountant should also identify risks before they become expensive, explain what the numbers mean, and help the director avoid preventable tax problems.
Merranti’s Corporation Tax guide, business expense guide and HMRC records guide are useful starting points.
When you may not need much accounting support
Not every company needs a full-service accounting package.
A very simple dormant company may only need basic filings.
A company with no trading activity, no payroll, no assets and no transactions may have limited accounting work.
A director who is competent with bookkeeping and tax may be able to do more internally.
However, even simple companies should check deadlines, filing requirements and whether the company is genuinely dormant.
The cost of a short review may be lower than the cost of penalties, rejected filings or incorrect dormant accounts.
Common limited company accounting mistakes
The first mistake is missing the Corporation Tax payment deadline.
The tax return deadline and tax payment deadline are not the same.
The second mistake is treating company money as personal money.
A limited company is separate from its director.
The third mistake is paying dividends without checking available profit.
Dividends need distributable profits and proper records.
The fourth mistake is assuming all expenses are allowable.
Some costs are disallowed, restricted or treated as benefits.
The fifth mistake is filing dormant accounts when the company has had transactions.
Dormant status should be checked before filing.
The sixth mistake is leaving accounts until the deadline.
Late accounts usually mean rushed records, missed planning and weaker decisions.
Speak to Merranti before your company year end
You do not legally need an accountant for every limited company, but many directors benefit from having one.
A proper review should check the company’s accounts, Corporation Tax, salary, dividends, director’s loan account, allowable expenses, records, Companies House filings and upcoming deadlines.
Merranti’s Corporation Tax guide, Corporation Tax marginal relief guide, business expense guide, HMRC records guide and director loan account guide are useful starting points.
If you run a limited company and are unsure whether your accounts, tax return, dividends or records are correct, contact Merranti Accounting before your next filing deadline.
Do I legally need an accountant for a limited company?
No. A limited company can prepare and file its own accounts and Company Tax Return. GOV.UK’s Company Tax Return guidance says a company can either use an accountant or do it itself.
What does an accountant do for a limited company?
An accountant can prepare annual accounts, file the Company Tax Return, calculate Corporation Tax, review expenses, check dividends, monitor deadlines, advise on salary and dividends, and help keep records compliant.
Can I file limited company accounts myself?
Yes, but the accounts and tax return must be correct. Filing yourself may be realistic for a very simple company, but trading companies often have issues around tax adjustments, dividends, payroll, expenses and director loan accounts.
When are limited company accounts due?
Annual accounts are usually due to Companies House 9 months after the company’s financial year end. GOV.UK’s limited company accounts guidance explains the main deadlines.
When is Corporation Tax due?
Corporation Tax is usually due 9 months and 1 day after the accounting period ends. The Company Tax Return is usually due 12 months after the accounting period. GOV.UK explains the deadlines here.
Does a dormant company need an accountant?
Not always, but a dormant company still has filing obligations. GOV.UK’s dormant company guidance explains that dormant companies must still file accounts and confirmation statements.
