---
title: Can I do my own accounts for a limited company in 2026/27?
description: "When managing a limited company in the 2026/27 financial year, directors frequently ask if they can bypass accountancy fees and prepare their statutory filings themselves. The strict legal answer is yes: you can do your own accounts for a limited…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/can-i-do-my-own-accounts-for-a-limited-company/"
updated: "2026-08-11"
category: Limited Company
---

# Can I do my own accounts for a limited company in 2026/27?

When managing a limited company in the 2026/27 financial year, directors frequently ask if they can bypass accountancy fees and prepare their statutory filings themselves.

The strict legal answer is yes: you can do your own accounts for a limited company. The law does not mandate the use of a qualified accountant. However, a major procedural shift for the 2026/27 [tax year](https://www.accountingfirms.co.uk/blog/good-timing-can-save-a-lot-of-tax/) has changed exactly *how* you must file them, and the law places severe personal liabilities on directors who get it wrong.

This guide sets out the statutory duties, the 2026 software mandates, and the penalty risks you face if you choose a DIY approach to your company’s accounts.

## The Legal Duty to Prepare Accounts

The obligation to produce financial statements rests entirely on the [company's directors](https://www.accountingfirms.co.uk/blog/helping-hands-are-you-liable-for-the-nmw/), not on an external advisor. Section 394 of the Companies Act 2006 (CA 2006) establishes this rule:

> "The directors of every company must prepare accounts for the company for each of its financial years".

As a director, you have the legal authority to prepare these individual accounts yourself. You must ensure you keep "adequate accounting records" throughout the year to support these accounts. Section 386 of the CA 2006 dictates that these records must be sufficient to show and explain the company’s transactions and disclose its [financial position](https://www.accountingfirms.co.uk/blog/what-is-turnover/) with reasonable accuracy.

## The 2026/27 Mandate: The End of Free HMRC Software

If you plan to do your own accounts in the 2026/27 tax year, you must factor in a critical technological change.

Previously, unrepresented companies with straightforward affairs could use HMRC's free [Corporation Tax](https://www.accountingfirms.co.uk/blog/tell-hmrc-that-your-company-is-dormant/) online filing service (CATO) to produce and submit their accounts and tax returns. The government closed this free service on 31 March 2026.

From 1 April 2026, HMRC strictly requires you to use third-party commercial software to file your Company Tax Return and accounts.  While you do not need to hire an accountant, you can no longer manage a company's statutory filings entirely for free using standard government web portals. You must purchase compliant software that submits your accounts in the mandatory iXBRL format.

## The Risk: Director Liability and the "True and Fair View"

Choosing to prepare the accounts yourself does not lower the statutory standard required by [Companies House](https://www.accountingfirms.co.uk/blog/role-of-accounting-in-crowdfunding-campaigns/) or HMRC.

Under section 393 of the CA 2006, directors must not approve accounts unless they are satisfied that those accounts give a "true and fair view of the assets, liabilities, financial position and profit or loss" of the company.

If you draft the accounts incorrectly and sign them off anyway, you expose yourself to criminal sanctions. Section 414 of the CA 2006 makes it a criminal offence for a director to approve accounts that do not comply with the Act, provided the director knew they did not comply (or was reckless as to whether they complied) and failed to take reasonable steps to prevent their approval.

Case law reinforces that a director cannot shield themselves behind ignorance or a failure to delegate. In *John Strange v The Commissioners for HMRC*, the First-tier Tribunal highlighted the inescapable nature of a director's duties:

> "The duty of the Director includes conducting a company’s affairs in a proper and business-like manner, which necessarily includes ensuring that the company abides by its statutory duties. As such, a director’s financial responsibilities include paying staff correctly and deducting [income tax](https://www.accountingfirms.co.uk/blog/hmrc-payment-niers/) and NIC... and then remitting these payments on time to HMRC."

If you fail to do your own accounts accurately and miss [tax payments](https://www.accountingfirms.co.uk/blog/what-is-a-sa302-form/), tribunals view this as negligent behaviour, placing the liability firmly on your shoulders.

## Increased Penalties for 2026/27

If your DIY approach causes you to miss the filing deadline, you face steeper financial penalties than in previous years.

Section 265 of the Finance Act 2026 explicitly increased the flat-rate penalties for failing to deliver a company tax return, applying to filing dates on or after 1 April 2026.

- **Initial Penalty:** The standard flat-rate penalty for missing the deadline increased from £100 to £200.
- **Repeated Failures:** If it is your third consecutive late return, the flat-rate penalty jumps to £400.
- **Extended Delays:** If the return remains outstanding for more than 3 months, you face additional penalties of up to £2,000, replacing the previous maximums.

## Summary: Doing Your Own Accounts in 2026/27

| Element | Statutory Provision / Case Law | 2026/27 Rule & Consequence |
| --- | --- | --- |
| **Right to Prepare Accounts** | s 394 CA 2006 | Directors have the duty to prepare accounts; an external accountant is not legally required. |
| **Record Keeping** | s 386 CA 2006 | You must maintain adequate records that show and explain all transactions accurately. |
| **Filing Method** | HMRC CATO Closure | Free HMRC filing closed 31 March 2026. You must pay for commercial iXBRL software. |
| **Accuracy Standard** | s 393 & s 414 CA 2006 | Accounts must give a "true and fair view". Approving reckless/non-compliant accounts is a criminal offence. |
| **Director Accountability** | *John Strange v HMRC* | Directors hold inescapable statutory responsibility for tax and accounting compliance. |
| **Late Filing Penalties** | s 265 Finance Act 2026 | Base penalty increased to **£200** for returns due on or after 1 April 2026. |

*For completeness, if you intend to prepare the accounts yourself, you should immediately evaluate the commercial iXBRL software market to secure a compliant filing platform well before your accounting period end date, ensuring you do not trigger the new £200 late filing penalty.*