Limited company accountants: everything you need to know

Running a limited company comes with a host of responsibilities—and accounting is one of the most critical (and complex) parts. Between filing annual accounts with Companies House, submitting Corporation Tax returns to HMRC, managing payroll, and keeping your records in order, the pressure can quickly build. For many limited company directors, trying to handle it all alone can be overwhelming.

Missing a deadline or filing incorrect figures isn’t just a hassle—it can result in fines, higher tax bills, or unwanted attention from HMRC. And with evolving rules around reporting and compliance, it’s no surprise that many business owners find it difficult to keep up.

That’s where Pulse Accountants can make a difference. With expert accounting services tailored to limited companies, we help you stay compliant, take advantage of all available reliefs, and gain clear insight into your limited company’s financial health—so you can focus on growth, not paperwork.

Whether you’re a new director or an established business looking to streamline your accounting, this guide covers everything you need to know about limited company accountants—from statutory obligations and tax requirements to tips for staying ahead of the curve.

1. Understanding Limited Companies

A limited company is a separate legal entity, distinct from its owners or shareholders. This means that the company itself is responsible for its debts, while the shareholders’ personal assets are protected. This structure offers limited liability, which is one of the main advantages of forming a limited company in the UK.

There are two main types of limited company in the UK:

• Private Limited Companies (Ltd): These companies are privately owned and cannot offer shares to the general public.
  
  
• Public Limited Companies (PLC): These companies can sell shares to the public and are often listed on the stock exchange.

For both types, the accounting requirements are more stringent than those for sole traders or partnerships. Limited companies must maintain comprehensive financial records and adhere to specific filing and reporting requirements to remain compliant with UK law.

At Pulse Accountants, we’ve worked with limited companies and other business types, of all shapes and sizes—from newly formed Ltds to established PLCs—helping them stay compliant, optimise their tax position, and gain confidence in their financial reporting. If you’re looking for expert support tailored to your company’s needs, get in touch with our team today and see how we can help your business thrive.

2. Legal Accounting Obligations

Limited companies in the UK are subject to strict legal requirements under the Companies Act 2006. These obligations ensure that businesses maintain transparency and accountability in their financial dealings.

One of the most important requirements is the submission of annual accounts to Companies House. These accounts include the company’s balance sheet, profit and loss account, and cash flow statement, providing a clear picture of its financial performance.

In addition to filing annual accounts, a limited company must also submit Corporation Tax returns to HMRC. These returns detail the company’s profits and are used to calculate the amount of tax owed. Failure to file these documents on time can result in penalties and interest charges. Some accountancies offer tax investigation insurance for limited companies that actually protects your business from surprise fees when undergoing HMRC investigations.

Another important requirement is the confirmation statement, which must be filed annually with Companies House. This statement confirms the details of the company, such as its directors, shareholders, and registered office address.

At Pulse Accountants, we take the stress out of staying compliant. From preparing your annual accounts and tax returns to managing your confirmation statements, our team ensures nothing slips through the cracks—so you can focus on running your limited company with peace of mind.

3. Financial Statements

Financial statements are the backbone of limited company accounting. They provide a clear and structured overview of your company’s financial health and are essential for both internal decision-making and statutory reporting.

The three main financial statements required by limited companies are:

• Profit and Loss Account (Income Statement): Shows the company’s income and expenses over a given period, highlighting operational performance and profitability.

• Balance Sheet: Summarises assets, liabilities, and shareholders’ equity at a specific point in time, offering a snapshot of the company’s financial position.

• Cash Flow Statement: Tracks the movement of cash in and out of the business, helping to monitor liquidity and ensure the company can meet its financial obligations.

Accurate and timely preparation of these documents isn’t just a regulatory requirement—it’s a business necessity.

At Pulse Accountants, we specialise in producing fully compliant financial statements for limited companies, tailored to your industry and reporting needs. We help ensure accuracy, clarity, and insight—so you’re not just ticking a box, you’re making smarter business decisions.

4. Corporation Tax and VAT

Limited companies in the UK are legally required to pay Corporation Tax on their profits. As of 2025, the main rate is 25%, although a small profits rate of 19% applies to companies with profits under £50,000. The Corporation Tax return (CT600) must be filed within 12 months of your accounting period ending, but payment is due 9 months and 1 day after the end of that period.

If your company’s taxable turnover exceeds £85,000, VAT registration becomes mandatory. VAT-registered businesses must:

• Charge VAT on taxable goods/services

• Submit VAT returns, usually quarterly

• Keep detailed VAT records

Failing to comply with these obligations can lead to fines, backdated interest, and reputational damage.

At Pulse Accountants, we manage your Corporation Tax and VAT requirements from start to finish—making sure your business stays compliant, avoids penalties, and maximises any available allowances or reliefs. Our expert team takes the stress out of tax season and helps you stay one step ahead of HMRC deadlines.

5. Payroll and PAYE

If your limited company employs staff (including directors), managing payroll is not optional—it’s a legal obligation. Under the Pay As You Earn (PAYE) system, employers must:

• Deduct Income Tax and National Insurance contributions (NICs)

• Submit payroll data to HMRC in real time (RTI)

• Pay employer NICs and any other applicable levies (e.g., Apprenticeship Levy)

Failure to process payroll correctly or meet RTI deadlines can lead to fines, interest, or even compliance investigations. In fact, HMRC issued over £40 million in PAYE penalties in a recent 12-month period due to reporting errors alone.

At Pulse Accountants, we take payroll off your plate—handling calculations, deductions, submissions, payslips, and more. Whether you have one employee or fifty, we make sure your payroll runs smoothly and compliantly every time.

6. Key Deadlines for Limited Companies

Staying on top of accounting deadlines is essential. Some of the most important ones for a limited company may include:

• Corporation Tax Payment: 9 months and 1 day after your accounting year ends

• Annual Accounts Filing: Within 9 months of year-end (Ltd companies)

• VAT Returns: Typically quarterly

• Confirmation Statement: Annually to Companies House

We provide reminders and manage all submissions on your behalf—so you never miss a date.

7. Common Challenges and Solutions

Running a limited company means dealing with multiple financial responsibilities, and getting it wrong can be costly. Here are some of the most common challenges directors face—and how Pulse Accountants helps overcome them:

• Misunderstanding tax rules:
  UK tax legislation is complex and ever-changing. From Corporation Tax to VAT schemes and allowable expenses, it’s easy to misinterpret the rules and end up overpaying—or worse, underpaying and facing penalties.
  At Pulse Accountants, we keep you up to date and fully informed. We explain your obligations clearly and apply the right tax treatment to all transactions—ensuring compliance and peace of mind.
  
  

• Poor record-keeping:
  Incomplete or disorganised records make it difficult to track your business’s performance, prepare accurate accounts, or defend your position in the event of an HMRC investigation.
  We help clients establish clean, efficient bookkeeping systems—or take the task off their hands completely. That way, your records are always accurate, complete, and audit-ready.
  
  

• Missed filing deadlines:
  Late submissions of annual accounts, tax returns, or confirmation statements can lead to fines, interest charges, and even reputational damage.
  With Pulse Accountants, you’ll never miss a deadline. We proactively track all statutory dates and handle submissions well in advance—so you stay on the right side of Companies House and HMRC.
  
  

• Inaccurate financial reporting:
  Poor reporting can lead to bad decisions, missed funding opportunities, and difficulties in managing cash flow.
  We prepare detailed financial reports tailored to your needs—giving you a clear picture of your company's performance, opportunities for growth, and areas for improvement.

Our advice? Get organised early—and wherever possible, delegate to professionals who can manage it for you.

Pulse Accountants offers practical, hands-on support for all these challenges—so you can run your limited company with confidence, clarity, and full financial control.

8. Accounting Software and Tools

While accounting software can be a powerful tool for limited companies, it’s not always the right fit for every business—especially when time is short or the software becomes too complex to manage effectively. Platforms like Xero, QuickBooks, and Sage offer features for invoicing, VAT returns, and financial reporting, but still require hands-on attention and regular updates.

With over 60% of limited companies in the UK now outsourcing at least part of their accounting functions to a dedicated accountant, it's clear that many directors prefer to leave it to the experts.

At Pulse Accountants, we don’t just give you software—we take the burden off entirely. Our full-service approach means you can skip the learning curve, avoid errors, and have peace of mind knowing that qualified professionals are managing your books, taxes, and compliance needs for you.

Focus on running your business—we’ll handle the numbers.

9. Choosing limited company accountants

Choosing the right accountant can transform how your limited company operates. A great accountant will:

• Keep your company compliant:
  At Pulse Accountants, we ensure all your statutory filings—annual accounts, ir35, VAT returns, Corporation Tax, and PAYE—are submitted accurately and on time. We've helped numerous clients avoid penalties and stay fully compliant with Companies House and HMRC regulations.

• Reduce tax liabilities:
  Our team actively looks for ways to minimise your tax burden. We’ve successfully helped clients claim everything from capital allowances to R&D tax credits and structure their income tax-efficiently—ensuring you retain more of your profits.

• Provide insights for growth and cash flow:
  We go beyond basic bookkeeping. Pulse clients benefit from tailored financial reporting, cash flow forecasts, and strategic advice to support growth, manage costs, and plan ahead with confidence.

• Handle HMRC correspondence on your behalf:
  Dealing with HMRC can be stressful—so we take that off your plate. From responding to queries and submitting returns to supporting clients during investigations, we act as your point of contact and advocate with HMRC.

Working with an accountant means you focus on what matters—growing your business.

At Pulse Accountants, we combine deep technical expertise with friendly, proactive service. We don’t just file your accounts—we work as a trusted extension of your business, always looking for ways to add value.

10. Benefits of hiring an accountant

Hiring an accountant gives you:

• Compliance peace of mind:
  We’ve helped limited companies stay on top of all their statutory duties—filing annual accounts, confirmation statements, VAT returns, and Corporation Tax submissions—accurately and on time. At Pulse Accountants, we handle all compliance-related tasks so you can avoid HMRC penalties and focus on running your business stress-free.
  
  

• Tax savings through strategic planning:
  At Pulse, we’ve helped clients reduce their Corporation Tax bills by identifying allowable expenses, using director salary/dividend combinations effectively, and advising on available reliefs like R&D tax credits. Our proactive approach ensures you're not paying a penny more than you legally owe.
  
  

• More time to focus on your business:
  Managing bookkeeping, payroll, VAT, and tax returns can be incredibly time-consuming. Our clients tell us that outsourcing these tasks to Pulse has freed up hours each week—time they now spend growing their business, serving customers, and developing new products or services.
  
  

• Accurate reporting that supports smart decisions:
  We provide clear, up-to-date financial reports that help you understand your cash flow, profitability, and future tax liabilities. Clients rely on our insights to make decisions like when to reinvest, hire, or cut costs—ensuring their business stays financially healthy and sustainable.
  
  

• Full-service support, from payroll to Corporation Tax:
  Whether it’s registering for PAYE, processing monthly payroll, filing VAT returns, or preparing year-end accounts, Pulse Accountants takes care of everything. We’re a one-stop solution for limited companies looking for end-to-end financial support without the overwhelm.

11. Risks of doing it all alone

Trying to manage your company accounts without expert help can lead to:

• Costly mistakes in tax or VAT filing

• Missed deadlines and penalty charges

• Lack of clarity over cash flow and profitability

• Lost opportunities for reliefs and allowances

In some cases, poor accounting has forced otherwise successful companies to close.

With Pulse Accountants, you're not taking that risk.

12. Why choose Pulse Accountants?

At Pulse Accountants, we’ve helped hundreds of UK limited companies navigate the challenges of business accounting with clarity, compliance, and confidence.

We’re not just an accountant—we’re real people who understand the pressures of running a business and who want to make a differece. Our services include:

• End-to-end compliance and reporting

• Personalised tax planning and advice

• Dedicated support from qualified professionals

• Flat, transparent pricing—no hidden costs

Whether you're a startup or a scaling business, Pulse Accountants is here to support your journey every step of the way and become a long term business partner. Contact us today to take your business to the next level.