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How Much Does It Cost to Run a Limited Company in the UK?

2026 GUIDE • COMPANY ACCOUNTING • TAX • BOOKKEEPING

A practical guide to company accounting, tax, Companies House fees and the costs directors should plan for.

Setting up a limited company can be an exciting step for your business, but it is important to understand the ongoing costs before you start trading.

Whether you are a contractor, electrician, plumber, builder, consultant or small business owner, running a limited company involves accounting, tax and administrative responsibilities.

At AccuCounts Pro Ltd, we help small businesses and company directors understand their financial obligations, manage their accounts and stay compliant with HMRC and Companies House.

What are the costs of running a limited company?

Your costs depend on your business activities, turnover, number of employees and the level of professional support you require. Common costs include:

Company accounting and annual accounts

Corporation Tax calculations and filing

Companies House confirmation statement

Registered office address

Business banking and accounting software

VAT returns, if registered

Payroll and pension administration

Business insurance and other operating expenses

1. Limited company accountancy fees

Accountancy fees are usually one of the most important ongoing costs. An accountant can help prepare annual accounts, calculate Corporation Tax, manage bookkeeping, prepare VAT returns and support compliance.

Depending on your needs, fees may be charged monthly, annually or separately for individual services. At AccuCounts Pro Ltd, support can include:

Annual statutory accounts and Corporation Tax returns (CT600)

Bookkeeping and financial reporting

VAT returns and VAT advice

Payroll and CIS support

Director’s Self Assessment tax returns

Xero and QuickBooks support

Ongoing accounting and tax guidance

Our aim is to help business owners understand their numbers, maintain accurate records and avoid unnecessary administrative stress

2. Companies House confirmation statement

Every UK limited company must file a confirmation statement at least once every 12 months, including dormant companies. It confirms that information held by Companies House is accurate and up to date

£50	£110
Online confirmation statement	Paper confirmation statement

Check details such as directors, shareholders, people with significant control (PSC), registered office, registered email address and SIC code. The statement must still be filed if nothing has changed

3. Companies House identity verification – 2026 update

Companies House has introduced identity verification for directors and people with significant control (PSCs). Identity verification became a legal requirement from 18 November 2025, with a transition period for existing appointments

Director reminder: complete identity verification and obtain your Companies House personal code. You may need to provide the code when filing your company’s next confirmation statement or when required for an appointment. Check the applicable deadline and requirements for each director and PSC

4. Registered office address

Every UK limited company must have an appropriate registered office in its jurisdiction of registration. This address appears on the public Companies House register and receives official correspondence

You may use your home address if appropriate, but a professional registered office service can help protect privacy. Ensure official correspondence is received and dealt with promptly

5. Business bank account

A limited company is legally separate from its director. Keeping company finances separate from personal finances is essential for clear records and proper accounting. Business banking costs vary by provider, account type and transaction volume; compare monthly fees, transaction charges and international payment costs

6. Corporation Tax for limited companies

Corporation Tax is payable on taxable profits, not simply turnover. The amount depends on profits, the accounting period and eligibility for tax relief

19%	25%	Marginal Relief
Small Profits Rate – eligible profits up to £50,000	Main Rate – profits above £250,000	May apply between the thresholds

The £50,000 and £250,000 thresholds may be reduced where a company has associated companies or a short accounting period

Corporation Tax deadlines

Payment is generally due 9 months and 1 day after the accounting period ends

The Company Tax Return (CT600) is normally due within 12 months after the accounting period ends

Annual accounts are normally due at Companies House within 9 months of the financial year-end for a private company

Missing deadlines can result in penalties and additional compliance issues

7. VAT registration and VAT returns

VAT registration is free. The UK VAT registration threshold is £90,000 of taxable turnover

You generally must register if taxable turnover exceeds £90,000 over the previous 12 months, or if you expect it to exceed £90,000 in the next 30 days. Voluntary registration below the threshold may also be possible

VAT-registered businesses normally submit returns through HMRC’s Making Tax Digital system. The amount payable depends on sales, purchases and the applicable VAT treatment. Choosing the right scheme and maintaining accurate records can make a difference to cash flow

8. Payroll and pension costs

If your company employs staff or pays a director through payroll, responsibilities may include PAYE registration, payroll processing, RTI submissions, employer National Insurance, workplace pension assessment and pension contributions. Costs depend on the number of employees and services required

AccuCounts Pro Ltd can help with payroll processing, payslips, HMRC submissions and pension administration

9. Business insurance

Insurance requirements depend on your activities and staffing. Common policies include employers’ liability, professional indemnity, public liability, business equipment and tax investigation insurance. Employers’ liability is generally legally required if you employ staff, subject to statutory exemptions. Other cover may be required by contracts or appropriate to your risks

10. Which limited company expenses can you claim?

Qualifying business expenses can reduce taxable profits, but not every expense paid by a company is automatically tax deductible. HMRC generally requires revenue expenses to be incurred wholly and exclusively for business purposes, unless specific rules permit apportionment

Accountancy and professional fees

Business insurance

Accounting software and subscriptions

Business bank charges

Office supplies

Business telephone costs

Business travel

Advertising and marketing

Employee wages and employer costs

Some expenses are restricted or disallowed. Capital expenditure may qualify for capital allowances rather than being deducted as an ordinary expense. Personal expenses must be treated correctly and should not simply be claimed as business costs

11. How much should you budget?

There is no single cost that applies to every limited company. A small company with few transactions and no employees will have different requirements from a VAT-registered company with staff and complex activity

Cost area	What to consider
Accountancy	Annual accounts, CT600 and ongoing support
Companies House	£50 online confirmation statement
Registered office	Address service, if required
Banking	Monthly charges and transaction fees
VAT	Return preparation and VAT payments
Payroll	Employees, director payroll and pensions
Insurance	Policies appropriate to your business
Software	Bookkeeping, invoicing and accounting systems

Compare accounting packages carefully and confirm which services are included. The lowest price may not provide the support you need

12. How AccuCounts Pro Ltd can help

Running a business should not mean spending all your time dealing with paperwork, bookkeeping and tax deadlines. AccuCounts Pro Ltd provides practical accountancy services for small businesses, contractors and company directors

Limited company accounts

Corporation Tax returns

Bookkeeping

VAT returns and VAT advice

Payroll and workplace pension support

CIS accounting for construction businesses

Self Assessment tax returns

Xero and QuickBooks support

Financial reporting and ongoing tax guidance

We provide clear explanations and reliable support to help you stay organised and make informed financial decisions

Frequently asked questions

How much does it cost to run a limited company in the UK?

It depends on business activity, turnover, accounting requirements, employees and VAT registration. Budget for accountancy, Companies House filings, banking, software and applicable tax or insurance costs.

What is the Companies House confirmation statement fee in 2026?

The online fee is £50; paper filing costs £110.

How much Corporation Tax does a limited company pay?

The Small Profits Rate is 19% for eligible companies with profits of £50,000 or less. The Main Rate is 25% for profits above £250,000. Marginal Relief may apply between these thresholds.

Does every limited company need to register for VAT?

No. Registration is generally compulsory when taxable turnover exceeds £90,000 over a rolling 12-month period or is expected to exceed that amount in the next 30 days. Voluntary registration is possible.

Does a limited company need an accountant?

A company is not legally required to appoint an accountant, but it must meet its accounting, tax and Companies House obligations. Professional support can help prepare accurate accounts, calculate taxes and manage deadlines.

Can a limited company claim accountancy fees as a business expense?

Fees relating to the company’s business and accounting affairs are generally allowable, subject to HMRC rules. Personal tax return costs and other personal expenses should be treated separately where appropriate

Looking for a limited company accountant?

If you need help with company accounts, Corporation Tax, VAT, bookkeeping or payroll, AccuCounts Pro Ltd can provide practical support tailored to your business

AccuCounts Pro Ltd – Financial Peace of Mind

Accountancy services for limited companies, contractors and small businesses.

Visit www.accucountspro.co.uk to contact us and arrange an initial telephone consultation.

Information based on HMRC and Companies House guidance available in November 2026. General information only; not individual tax advice. Check current official guidance for your circumstances.

AccuCounts Pro Ltd | Financial Peace of Mind