Filing Company Accounts & Tax Returns — DIY vs Using an Accountant

For many UK limited company directors and startup founders, filing company accounts and tax returns feels like one of those tasks you "should" be able to do yourself. After all, Companies House and HMRC provide online portals (for now, at least). There are guides, templates, and even software options. So why bother paying an accountant?

The answer comes down to risk, time, hidden costs — and peace of mind.

In this article, we’ll unpack the reality of DIY filing versus working with a qualified accountant, so you can make an informed choice for your business.

The Basics — What Needs Filing?

If you run a limited company, you're legally required to file:

✅ Annual Accounts to Companies House
✅ Corporation Tax Return (CT600) to HMRC
✅ Confirmation Statement to Companies House (separate, but often confused)

Depending on your business, you might also need:

• VAT returns

• Payroll submissions

• Director self-assessment tax returns

Sounds simple enough — but the devil is in the details.

The Problem With Doing It Yourself

Plenty of small business owners start with good intentions, only to get caught out by:

1. The Complexity Behind the Forms

While Companies House and HMRC provide forms, they assume you understand accounting terminology, tax rules, and how to properly format your financial data.

Common DIY mistakes include:

• Filing incorrect figures due to misunderstanding allowable expenses

• Forgetting to include all required disclosures (e.g., notes to accounts)

• Using the wrong format — especially for micro-entity or small company accounts

• Missing tax reliefs you're entitled to claim

These aren’t small issues. Errors can trigger penalties, investigations, or additional tax bills.

2. Hidden Costs of "Free" Filing

On the surface, DIY filing looks free — no accountant fees. But:

• Your time: Sorting paperwork, learning the rules, and worrying you’ve missed something eats into time better spent running your business.

• Stress: Many DIY directors spend hours second-guessing themselves, especially as deadlines loom.

• Potential penalties: Late or incorrect filings can lead to fines — £150 to £1,500 for late accounts, for example.

Worse, a poorly filed tax return might mean you overpay tax — a hidden cost that's rarely spotted without expert help.

3. Risk to Your Business Reputation

Companies House filings are public. Sloppy accounts, late submissions, or incorrect information can make your business look unprofessional — not ideal when trying to win clients, partners, or investors.

How an Accountant Adds Value

A qualified accountant does far more than tick boxes and submit forms. They:

✅ Get it Right, First Time

An accountant understands the filing requirements inside out — from choosing the correct format to spotting allowable tax deductions. That means fewer mistakes, less stress, and a smoother process.

✅ Save You Time

They take the burden off your plate, so you can focus on growing your business — not deciphering HMRC guidance.

✅ Identify Tax Savings

Many business owners miss legitimate tax reliefs when filing alone. A good accountant ensures you're not overpaying tax.

✅ Keep You Compliant

Filing deadlines, rule changes, MTD (Making Tax Digital) — your accountant stays on top of it all, so you don’t have to.

✅ Offer Business Advice

Beyond compliance, accountants often act as trusted advisors — helping with cashflow, forecasting, and business decisions.

But What About the Cost?

It’s true — hiring an accountant isn’t free. But consider:

• The time you save

• The tax you could legitimately save

• The peace of mind knowing it’s done properly

• The avoidance of penalties or expensive errors

In most cases, the benefits outweigh the cost — especially when you factor in the hidden costs of DIY.

The Bottom Line — Confidence or Constant Worry?

Filing your own company accounts and tax returns is possible. But for most limited company directors and startups, it quickly becomes a false economy.

With the support of a qualified accountant, you not only stay compliant — you gain valuable insights, save time, and reduce stress.

Want Expert Help, Minus the Headache?

At Carr Accounting Studio, we make filing company accounts and tax returns simple, clear, and hassle-free — so you can focus on running your business with confidence.

Let’s have a no-pressure chat. Get in touch today.