Do I need an accountant for my limited company?
Direct Answer
No — there is no legal requirement to use an accountant for a UK limited company. But a one-man limited company has at least 7 distinct annual filing obligations with HMRC and Companies House. Missing deadlines triggers automatic penalties. A specialist contractor accountant costs less than most people expect — and significantly less than the cumulative cost of getting things wrong.
Is an accountant legally required?
No legal requirement under the Companies Act 2006 — you are permitted to prepare and file your own accounts
Accounts must comply with FRS 105 (micro-entity) or FRS 102 accounting standards — and the CT600 must be filed in iXBRL format
The gap between "legally permitted" and "sensible" is where most contractors struggle — compliance is only part of the value
What does a one-man limited company actually have to do?
Monthly bookkeeping
Recording income, expenses, and bank transactions — every month, throughout the year.
Quarterly VAT returns
Submitted via Making Tax Digital-compatible software. Mandatory for all VAT-registered businesses since April 2022.
Monthly payroll / RTI
Real Time Information submissions to HMRC — required every time you pay a salary, even the minimum director salary.
Self-Assessment tax return
Personal tax on salary, dividends, and any other income — filed by 31 January each year.
Year-end statutory accounts
Prepared to FRS 105 or FRS 102 accounting standards, filed with Companies House within 9 months of year end.
Corporation Tax return (CT600)
Filed with HMRC in iXBRL format within 12 months of year end. Tax payment due 9 months and 1 day after year end.
Annual Confirmation Statement
Filed with Companies House within 14 days of your review period end date. Cost: £34. Missing it risks company dissolution.
"Seven obligations. Seven sets of deadlines. Seven ways to incur penalties."
Need help with your confirmation statement specifically? Confirmation Statement Filing Service — from £59 →
Penalties for getting it wrong
| Filing | Late penalty |
|---|---|
| Companies House accounts — less than 1 month late | £150 |
| Companies House accounts — more than 6 months late | £1,500 |
| Missing accounts two years in a row | Doubled |
| HMRC late payment interest | Bank of England base rate + 2.5% |
| VAT surcharges | £200+ plus interest |
| PAYE/RTI late filing | £100/month per scheme |
What most contractors get wrong DIY
Not claiming all allowable expenses — particularly home office, training, equipment, and professional subscriptions
Taking dividends incorrectly or at the wrong time relative to profits and personal tax thresholds
Missing VAT return deadlines or using the wrong VAT scheme — the Flat Rate Scheme saves many contractors £600–£1,500/year
Underestimating the complexity of year-end accounts and the CT600 in iXBRL format
Not optimising the salary/dividend/pension mix — the difference is typically £2,000–£5,000 in unnecessary tax per year
Does an accountant pay for itself?
Autobooks: £89+VAT/month = £1,068+VAT per year
At £400/day: 3 days of contracting work covers the full annual fee.
Most contractors spend significantly more than 3 days per year on their finances — less accurately, with more stress, and with no specialist tax planning.
The comparison is not between having an accountant and not having one. It is between having a specialist contractor accountant and paying a general accountant who does not understand IR35, salary/dividend optimisation, or the tax planning specific to your situation. The specialist knowledge typically generates savings that more than cover the fee.
Who Autobooks is built for
One-man limited company contractors and freelancers
Operating outside or inside IR35 — we work with both
Not landlords, not retailers, not businesses with multiple employees
That specialisation is how we keep the price low and the quality high
What's included at £89+VAT/month
Monthly bookkeeping
Quarterly VAT returns (MTD-compliant)
Director payroll (monthly RTI submissions)
Self-Assessment tax return
Year-end statutory accounts
Corporation Tax return (CT600)
Confirmation Statement filing
IR35 risk review
Salary/dividend/pension optimisation
Have more questions? See the full Q&A — Do I Need an Accountant? →
Built especially for contractors. Not landlords, not retailers — contractors.
From £89+VAT/month. Everything included. No surprises.