Bookkeeping for UK Limited Companies: What You Actually Need

Running a UK limited company comes with bookkeeping obligations most directors don't fully understand until they get caught out.

The bare minimum every limited company must do

Maintain accounting records for 6 years. File annual accounts at Companies House within 9 months of year-end. File a Confirmation Statement annually. File and pay Corporation Tax within 12 months / 9 months and 1 day of year-end. File quarterly VAT returns if registered. Run PAYE for any employees including directors above the LEL.

What "good" limited company bookkeeping looks like

Weekly bank reconciliation, a clean chart of accounts, sales invoices issued promptly, purchase invoices captured digitally via Dext, expenses claimed properly (mileage, use of home), dividends documented with board minutes and vouchers, and the director's loan account tracked accurately.

Monthly management accounts — why they matter

Most accountants only produce numbers once a year. Monthly management accounts give you a P&L vs budget, balance sheet, cashflow and a Corporation Tax provision so you can make decisions about hiring, investment, dividends and pricing with confidence.

VAT for limited companies

The 2026 registration threshold is £90,000. Quarterly returns through MTD-compliant software. The right VAT scheme (standard, cash, flat rate, annual) can save real money — a good bookkeeper sets it up properly and reviews annually.

Payroll — including the director

If your company pays you a salary, you have to run PAYE — even at the typical £758/month directors-fee level. Most director-only companies need an annual scheme; companies with employees need full monthly RTI. See how outsourced payroll works.

Year-end and Corporation Tax

If your books are clean and reconciled monthly, year-end is a 2-week sprint with your accountant. If they're a mess, it's a 2-month nightmare and you're paying twice. Outsourcing bookkeeping monthly and using your accountant only at year-end is the cheapest, cleanest setup.

How much does limited company bookkeeping cost in the UK?

Sole director, low volume: £150–£250/month. Small team, VAT-registered: £300–£500/month. Established (£500k–£2m): £500–£900/month. £1m+ businesses should consider an outsourced finance function. Full breakdown in our UK pricing guide.