Does a Limited Company Have to Have an Accountant? The Honest 2026 Answer
No UK law requires a limited company to appoint an accountant — directors have always been legally free to prepare and file their own accounts and Corporation Tax return. That’s the answer nearly every guide gives, and it’s technically correct. What’s changed for 2026 is the practical route behind it: HMRC’s free online filing service for company accounts and tax returns closes permanently on 31 March 2026. After that date, filing without commercial software or a professional simply isn’t an option — the free DIY route most self-filing directors have relied on for years is disappearing entirely.
This guide covers the legal answer, what’s actually changing in 2026, the penalty that just doubled, and how to decide whether DIY filing genuinely still makes sense for your company.
Quick Answer
No, a limited company is not legally required to have an accountant — directors can prepare and file statutory accounts, the Corporation Tax return (CT600), and the confirmation statement themselves. What doesn’t change is personal responsibility: as director, you remain legally accountable for accuracy and timeliness whether you do the work yourself or pay someone else to. The practical picture is shifting for 2026, though: HMRC’s free online filing service closes on 31 March 2026, meaning DIY filers will need to buy commercial accounting software to continue self-filing. The CT600 late filing penalty also doubled from £100 to £200 from 1 April 2026, the first change to that fixed penalty since 1998.
Key Takeaways
- No UK law requires a limited company to appoint an accountant — directors can legally prepare and file accounts and tax returns themselves.
- HMRC’s free online filing service for company accounts and tax returns closes on 31 March 2026 — after that, DIY filers need commercial software instead.
- The fixed CT600 late filing penalty doubled to £200 from 1 April 2026, applying even where no tax is owed.
- Director responsibility never transfers to an accountant — you’re personally accountable for accuracy and timing regardless of who prepares the filing.
- The micro-entity turnover threshold rose to £1 million from 6 April 2025, letting more companies use the simplest accounts format — though a simpler format doesn’t reduce personal liability for errors.
- Typical accountant fees run £60–£150 a month for ongoing small company compliance.
Table of Contents
- The Legal Answer: No, But Here’s What That Actually Means
- HMRC’s Free Filing Service Closes 31 March 2026
- The CT600 Late Filing Penalty Just Doubled
- What You’re Actually Signing Up For If You DIY
- Director Liability: What Doesn’t Go Away
- The Micro-Entity Threshold Change
- Limited Companies in London: What We See
- A Worked Example: DIY Filing After March 2026
- How Much Does an Accountant Cost?
- Common Mistakes People Make
- Accountant Insights: What We See in Practice
- Should You DIY or Hire an Accountant? (Decision Framework)
- DIY vs Professional Accountant
- Checklists
- FAQs
- Sources
- Final Thoughts
The Legal Answer: No, But Here’s What That Actually Means
Company law imposes no requirement to hire an accountant. A director can prepare and file statutory accounts with Companies House, submit the Company Tax Return (CT600) to HMRC, run payroll, handle VAT, and maintain statutory records entirely without professional help — this has always been true and remains true in 2026. What company law does require is that the work gets done accurately and on time, and that the director stays legally responsible for it regardless of who actually does the preparation. Most guides on this question stop at “no, you don’t need one” — the more useful question for 2026 is what’s actually changing in the practical mechanics of doing it yourself.
HMRC’s Free Filing Service Closes 31 March 2026
This is the change that genuinely reshapes the DIY calculation for 2026. HMRC currently offers a free online service allowing small companies to file both their accounts and Company Tax Return directly, at no cost — the route most self-filing directors have used for years. That free service closes permanently on 31 March 2026. From that point, filing without an accountant means buying commercial accounting or tax software capable of producing the correct filing formats for both Companies House and HMRC, since neither will continue accepting the old free-route submissions after the closure date.
This doesn’t make DIY filing illegal or impossible — commercial software ranges from genuinely affordable options for the simplest micro-entity accounts to more comprehensive packages for anything with real complexity. But it does mean the “free” part of self-filing is disappearing, and the decision between DIY and an accountant now needs to weigh software subscription costs against professional fees, not weigh a paid accountant against a genuinely free alternative.
The CT600 Late Filing Penalty Just Doubled
From 1 April 2026, the fixed penalty for filing a Company Tax Return even one day late doubled from £100 to £200 — the first change to this specific fixed penalty since 1998. It applies automatically regardless of whether any Corporation Tax is actually owed, and it sits alongside Companies House’s separate, escalating penalty regime for late accounts, which runs from £150 for filing up to a month late to £1,500 for accounts filed more than six months late (doubling again if the company was also late the previous year). Two separate bodies, two separate penalty regimes, both of which just got more expensive to get wrong.
What You’re Actually Signing Up For If You DIY
Filing your own limited company accounts means preparing a balance sheet, and — depending on your company’s size — a profit and loss account, correctly formatted for Companies House, alongside a separate CT600 Corporation Tax computation for HMRC with its own deadline (12 months after your accounting period ends, versus 9 months for statutory accounts). You’ll also need to file a confirmation statement annually, run payroll correctly if you draw a salary, and handle VAT returns if registered. None of this is impossible for a comfortable, numerate director with modest complexity — but each element carries its own formatting rules, deadline, and penalty regime, and errors in a Corporation Tax computation specifically (misapplying Marginal Relief, missing a capital allowance, or miscategorising an expense) can be considerably harder to spot without training than a simple late filing would be.
Director Liability: What Doesn’t Go Away
Whether you file yourself or pay an accountant, the legal responsibility for accuracy sits with you as director — this is stated plainly in Companies House’s own guidance. Hiring an accountant delegates the work, not the accountability: if a filing is wrong, late, or misleading, it’s the director who can face fines, prosecution, or disqualification, regardless of who actually prepared the figures. This is exactly why choosing an accountant carefully — checking qualification and AML supervision, not just accepting the cheapest quote — matters as much as deciding whether to hire one at all.
The Micro-Entity Threshold Change
From 6 April 2025, the micro-entity turnover threshold rose from £632,000 to £1 million, meaning considerably more small companies now qualify for the simplest available accounts format — a balance sheet with minimal notes, no profit and loss account required for public filing. This makes DIY filing more accessible on paper for a wider band of companies than before. It’s worth being clear, though, that qualifying for a simpler filing format changes what you have to publish, not the underlying accuracy the director remains responsible for — a simple format doesn’t forgive an incorrect number.
Limited Companies in London: What We See
London is home to more registered companies than any other UK region, out of over 5 million companies on the UK register overall — a concentration that means a genuinely large number of London-based directors are weighing exactly this DIY-versus-accountant decision at any given time. With London’s generally higher revenue and cost bases, the practical stakes of getting a filing wrong — a doubled £200 CT600 penalty, or an escalating Companies House late-filing charge — tend to sit alongside correspondingly higher Corporation Tax and VAT exposure than a comparable company elsewhere in the UK, making the accuracy question, not just the compliance question, weigh more heavily for many London directors.
A Worked Example: DIY Filing After March 2026
Illustrative Example: Say a director has self-filed their small limited company’s accounts and CT600 every year using HMRC’s free online service, at no cost beyond their own time. From April 2026, that free route no longer exists. To continue filing independently, they need to purchase commercial software — typically £150–£400 a year for a straightforward micro-entity — which, once weighed against their own time spent learning and using new software correctly, may end up costing nearly as much as a modest fixed-fee accountant service that also carries professional accuracy and deadline management.
Illustrative Example: A different director files their CT600 two days late in May 2026, unaware the fixed penalty had doubled that April. Where the same mistake would have cost £100 the previous year, it now costs £200 — a small but genuinely doubled cost, on top of the separate, larger Companies House penalty if the accounts filing is also late.
How Much Does an Accountant Cost?
£75 – £150 / year
£60 – £150 / month
£300 – £1,200 / year
£150 – £400 / year
£1,200 – £3,000+ / year
Common Mistakes People Make
1. Assuming the free HMRC filing route will still be there next year
Why it happens: The service has been available for years, so its closure isn’t yet common knowledge.
Consequence: Discovering at filing time that the free route no longer exists, with no software or accountant lined up.
How to avoid it: Plan your post-March 2026 filing route — software or accountant — well before your next deadline.
2. Assuming DIY filing removes personal risk if something goes wrong
Why it happens: It’s easy to conflate “doing it yourself” with reduced accountability.
Consequence: Facing fines, prosecution, or disqualification personally, since director responsibility never transfers.
How to avoid it: Treat your own filing with the same care and deadline discipline an accountant would apply.
3. Not budgeting for the doubled CT600 penalty
Why it happens: The £100 figure has been unchanged since 1998, so it’s easy to assume it still applies.
Consequence: An unexpectedly higher penalty for a late filing from April 2026 onward.
How to avoid it: Know the current £200 figure and build in a buffer before your actual deadline.
4. Assuming a simpler micro-entity format means less personal liability
Why it happens: A shorter, simpler accounts format feels lower-stakes.
Consequence: The same director responsibility for accuracy applies regardless of filing format.
How to avoid it: Don’t equate a simpler format with reduced care needed in preparing it.
5. Choosing an accountant purely on price without checking qualification
Why it happens: Cost feels like the easiest comparison point between options.
Consequence: Working with someone whose training and AML supervision were never actually confirmed.
How to avoid it: Check ACA, ACCA, or AAT qualification and AML supervision before committing.
Accountant Insights: What We See in Practice
- The closure of HMRC’s free filing service is, in our experience, still poorly known among directors who’ve relied on it for years — this is a genuine planning gap worth closing now rather than at the deadline.
- Directors who DIY successfully tend to share the same traits — genuinely simple, single-activity companies, comfortable with numbers, and disciplined about deadlines.
- The gap between “legally allowed to DIY” and “sensible to DIY” widens considerably once VAT, payroll, or any real complexity enters the picture.
- Clients who switch from DIY to an accountant mid-year most often do so after a near-miss — a late filing, a miscalculated CT600, or a Companies House warning letter.
- The doubled CT600 penalty and the free-filing closure together make 2026 a genuinely different year to reassess the DIY-versus-accountant decision, even for directors who’ve comfortably self-filed for years.
Should You DIY or Hire an Accountant?
Step 1: Assess your actual complexity. A single-activity dormant or micro-entity company is far simpler than one with VAT, payroll, or multiple income streams.
Step 2: Plan your post-March 2026 filing route now. Confirm whether you’ll buy commercial software or hire an accountant before the free service closes.
Step 3: Weigh software cost against professional fees properly. The free option is disappearing, so this is now a genuine cost comparison.
Step 4: Consider your own time and confidence honestly. A CT600 computation error can be harder to spot than a late filing.
Step 5: If hiring, verify qualification and AML supervision. Don’t choose purely on price.
DIY vs Professional Accountant
| Option | Advantages | Disadvantages | Best For |
|---|---|---|---|
| DIY (commercial software, post-March 2026) | Full control; potentially cheaper for very simple companies | No professional accuracy check; director bears full responsibility; software cost now required | Dormant or very simple micro-entity companies with a confident, numerate director |
| Professional accountant | Accuracy checked; deadlines managed; tax planning included | Ongoing fee | Any trading company with VAT, payroll, or more than minimal complexity |
Checklists
Checklist 1: Before 31 March 2026
- ✓ Confirm whether you currently use HMRC’s free filing service
- ✓ Research commercial software options if planning to continue DIY
- ✓ Get accountant quotes as a comparison, even if leaning toward DIY
- ✓ Set a decision deadline well before your next filing is due
Checklist 2: If You Choose to DIY
- ✓ Confirm your accounts format (micro-entity, small, or full) based on the £1m threshold
- ✓ Note both the Companies House and HMRC deadlines separately
- ✓ Budget for the doubled £200 CT600 penalty as a risk, not just a possibility
- ✓ Keep records thorough enough to support every figure if HMRC queries them
FAQs
Does a limited company legally have to have an accountant?
No — UK company law doesn’t require it. Directors can legally prepare and file their own accounts and Corporation Tax return.
Is HMRC’s free company filing service really closing?
Yes — it closes on 31 March 2026, after which filing without an accountant requires commercial accounting or tax software.
What is the CT600 late filing penalty now?
£200 from 1 April 2026, doubled from the previous £100 figure that had been unchanged since 1998.
Does hiring an accountant remove my legal responsibility as director?
No — you remain personally accountable for the accuracy and timeliness of your company’s filings regardless of who prepares them.
What is the micro-entity threshold for 2026?
£1 million turnover, raised from £632,000 from 6 April 2025, letting more companies use the simplest accounts format.
Can I still file my own accounts after March 2026?
Yes, but you’ll need commercial accounting or tax software rather than HMRC’s free service, which closes permanently on that date.
How much does an accountant typically cost for a small limited company?
Roughly £60–£150 a month for ongoing compliance, or £300–£1,200 a year for annual filings only.
What are the main filing deadlines for a limited company?
Statutory accounts within 9 months of your accounting reference date, and the Company Tax Return within 12 months of your accounting period end.
Is it riskier to DIY a Corporation Tax computation than the accounts themselves?
Often, yes — errors like misapplying Marginal Relief or missing a capital allowance can be harder to spot without training than a straightforward late filing.
Should a dormant company still bother with an accountant?
Often not necessary — dormant company filings are simple enough that many directors handle them without issue, though confirming the correct dormant-company filing format is still worth checking.
Sources
- GOV.UK — Running a limited company: directors’ responsibilities
- GOV.UK — File company accounts and Company Tax Return together
- GOV.UK — Penalties for late filing of company accounts
- GOV.UK — Company Tax Return: penalties for late filing
- GOV.UK — Micro-entity accounts and company size thresholds
Filing requirements, penalties, and thresholds are set by Companies House and HMRC and subject to change — always confirm current requirements on GOV.UK before relying on this information.
Final Thoughts
The legal answer hasn’t changed — no, a limited company doesn’t have to have an accountant. What’s changed is the practical landscape around that answer: HMRC’s free filing route disappears from 31 March 2026, the CT600 late penalty has doubled, and director responsibility for accuracy remains exactly where it’s always been, on you. For many directors, 2026 is a genuinely sensible point to reassess whether DIY still makes sense, rather than assuming last year’s approach automatically carries forward.
Want a second opinion on whether DIY or an accountant makes more sense for your company? Get in touch for a fixed-fee quote, or see our full pricing guide.