No law requires a limited company to appoint an accountant. What the law does require is that the company’s directors deliver accurate statutory accounts, a Corporation Tax return, and Companies House filings such as the confirmation statement, and that responsibility sits with the directors personally whether or not an accountant is engaged. Hiring one delegates the work, never the duty. Once that distinction is clear, the real question is practical: are you equipped to produce statutory-standard filings yourself, and is that a sensible use of a director’s time?

The duty stays with you, so what does an accountant change?

This is the point most worth absorbing before anything else. If your accountant files late, files wrongly, or misses something, the company and its directors answer for it. Engaging a professional does not transfer legal responsibility; it reduces the likelihood you will ever have to test that fact. A competent accountant changes three things:

  • Probability of error. Statutory accounts follow prescribed formats and accounting standards; a specialist produces them routinely, you would be learning on your own filings.
  • Time. Preparation that takes an experienced accountant hours can absorb a director’s weeks.
  • Decisions. How you pay yourself, when you invest, how you extract profit: each interacts with company and personal tax, and the interactions are where advice earns most.

What a company must file, in plain terms

Running a limited company means recurring obligations to two bodies. To Companies House: annual accounts in the required format and a confirmation statement, plus event-driven filings when details change. To HMRC: a Corporation Tax return with supporting computations, and PAYE reporting if the company pays salaries. Current GOV.UK guidance covers the deadlines and formats for each. None of this is impossible for a determined director. But unlike a sole trader’s Self Assessment, these filings were not designed for lay preparation, and the accounts must satisfy statutory presentation rules, not just add up.

The DIY director: who genuinely manages it

Some directors do run companies without an accountant, and it can work when the company is dormant, or trading is minimal with very few transactions, or the director has an accounting background. Software has made the mechanics more accessible. What software does not supply is knowledge of accounting standards, awareness of which reliefs the company can claim, or a view on whether your salary-and-dividend mix makes sense. If your company is more than a shell, the honest odds are that DIY costs you more in missed planning than it saves in fees.

Beyond compliance: where directors get real value

Most limited company owners who rate their accountant highly are not paying for filings alone. The recurring value shows up in:

  • Structuring pay between salary and dividends in light of current rules
  • Timing purchases and claims so relief is not wasted
  • Management figures that show how the company is actually doing between year-ends
  • A second opinion before signing leases, taking on debt or bringing in shareholders
  • Handling HMRC correspondence so letters do not sit unanswered

New companies face all these questions at once. If that is you, does a startup need an accountant? goes deeper. And if you are still weighing incorporation itself, read should you speak to an accountant before changing business structure? first.

Frequently asked questions

No. The legal requirements are accurate and timely filings, and directors may prepare these themselves. An accountant is professional support, not a statutory appointment.

If my accountant makes a mistake, who is liable?

The company and its directors remain responsible to Companies House and HMRC. You may have recourse against the accountant separately, but the filing obligations are yours.

Does a small company need an audit?

Most small companies qualify for audit exemption under current GOV.UK guidance. An audit is a separate service from everyday accountancy, and most small limited companies never need one.

Can I do my own bookkeeping and hand over just the year-end?

Yes, and it is a common arrangement. Clean books through the year make the statutory work faster and cheaper.

Does being the only director and shareholder simplify things?

It simplifies decision-making, not the filing obligations. A one-person company files the same categories of documents as one with fifty staff, in reduced form.

How we support directors

Our company accounts service covers statutory accounts, Corporation Tax and Companies House filings, with director pay planning built into the conversation. See who we work with on our limited company accountants page, or start with the full guide to whether your business needs an accountant. Ready for numbers? Request a quote and we will price your company’s actual workload.