Running a limited company comes with a set of legal accounting obligations that catch many new directors off guard. This guide explains exactly what you must do, when you must do it, and what it realistically costs to stay compliant.

Why limited company accounting is more involved than most directors expect

A limited company is a separate legal entity from its director. That single fact creates a chain of obligations that sole traders simply do not face. You are responsible for filing accounts with Companies House, submitting a Company Tax Return to HMRC, running payroll if you pay yourself a salary, and filing VAT returns if your turnover crosses the registration threshold.

Most new directors underestimate the volume of moving parts. The requirements are not intuitive, and Companies House does not send reminders when deadlines are approaching. Missing a filing date triggers automatic penalties, and those penalties escalate the longer the accounts remain overdue.

Where most limited company directors go wrong

The mistakes I see most often are not reckless. They come from directors who are genuinely trying to manage their own accounting without fully understanding what the rules require. Here are the two that cause the most damage.

Missing the filing deadline for your first accounts

Your first accounts have a longer deadline than subsequent years. A company incorporated in January 2025 has until 1 October 2026 to file its first accounts with Companies House, which is 21 months from the date of incorporation. After that, private companies have 9 months from their accounting reference date each year. Many directors assume the deadline is 12 months and file late without realising it.

Treating the company bank account like a personal account

Mixing personal and business transactions is the single fastest way to create a bookkeeping problem. Every payment taken from the company must be categorised correctly as salary, dividend, or a director’s loan. If it is a loan, it needs to be repaid or declared as income within a specific timeframe or additional tax charges apply. Clean separation from day one makes your year-end accounts significantly cheaper to prepare.

What limited company accounting actually involves, step by step

Think of limited company accounting in three layers: ongoing bookkeeping throughout the year, the year-end accounts and Corporation Tax Return, and any additional filings like VAT or payroll. Each layer has its own deadlines and its own rules.

1. Maintain monthly bookkeeping records. Every invoice raised, every expense paid, and every bank transaction needs to be categorised and reconciled. This is not optional admin. It is the foundation that every other filing depends on. Falling behind on bookkeeping is the primary reason year-end accounts take longer and cost more to prepare.
2. Prepare and file your year-end accounts and Corporation Tax Return. Your Corporation Tax accounting period cannot be longer than 12 months and must align with your annual accounts. Private limited companies have 9 months from their accounting reference date to file accounts with Companies House. Your Corporation Tax payment is due 9 months and 1 day after your accounting period ends. From 1 April 2028, all companies must file accounts using commercial software, so using an accountant who already operates compliant software removes that burden entirely.
3. Handle supplementary filings as they fall due. If your turnover exceeds the VAT registration threshold, you must register and submit quarterly VAT returns. If you pay yourself or any employees through the company, payroll must be reported to HMRC in real time via RTI submissions. Subcontractors working in the construction industry face additional CIS reporting obligations each month.

None of these steps are technically impossible for a director to handle alone. The problem is that each one has its own deadline, its own format, and its own penalty regime. Managing all of them accurately while running a business is where things tend to slip.

What limited company accounting realistically costs

For a limited company with turnover under £100,000, a full-service monthly accountancy package at STZ Accounting starts at £215 per month. That covers monthly bookkeeping, your year-end accounts, Corporation Tax Return, Confirmation Statement, quarterly VAT returns, payroll for up to five employees, Self Assessment for two directors, and ongoing advice. Companies with turnover between £100,000 and £750,000 are covered under the Silver package at £340 per month, which adds monthly debtor and creditor reports and quarterly meetings. All fees are fixed and quoted in advance with no unexpected extras.

How to get your limited company accounting in order today

If your accounts are already overdue, the first step is to find out exactly where you stand. Companies House shows your filing history and current deadlines on your company record. HMRC holds your Corporation Tax payment and return deadlines separately. Getting a clear picture of what is outstanding takes about ten minutes, and it is worth doing before anything else.

• Check your Companies House record at companies.gov.uk and note the filing deadline shown for your next confirmation statement and accounts.
• Book a free call with David at STZ Accounting to go through what is outstanding, what the penalties are if any deadlines have passed, and what a fixed monthly package would cover going forward.