Do I need an accountant for my limited company?

No UK law requires a limited company to have an accountant. Directors are responsible for keeping adequate accounting records, preparing accounts that comply with the Companies Act and the relevant standard, filing them on time, and delivering an accurate company tax return.

Only companies over the audit thresholds need an auditor, and most small companies are exempt. An accountant is optional; compliance is not.

Bookkeeping and bank reconciliation, accounts under FRS 105 or FRS 102 Section 1A with the correct disclosures, iXBRL tagging for HMRC, the CT600 and computations, RTI payroll submissions each time you pay yourself, auto-enrolment duties, VAT returns under Making Tax Digital, the confirmation statement, and your own Self Assessment.

You also carry the judgement calls: whether a cost is allowable, whether a dividend was legally payable out of distributable profits, whether a director loan triggers a section 455 charge, and whether a relief applies.

Illegal dividends paid when reserves did not support them, which have to be repaid or reclassified as salary or a loan. Director loan accounts overdrawn at the year end, attracting a 35.75% section 455 charge if not repaid within nine months and a day. Missed VAT registration once turnover crossed £90,000 in a rolling twelve months. Late filing penalties that start at £150 and double for a repeat.

None of those are exotic. They are the four most common issues we find on takeover from a self-filed company.

A dormant company, a first year with almost no transactions, or a very small consultancy with one client, no staff, no VAT and no complexity can reasonably be self-filed, especially if you use accounting software and read the guidance carefully.

Once you add VAT, employees, a second shareholder, property, R&D or any overseas element, the value of advice usually exceeds the fee well before the year end.