How to Submit Your Own Accounts: A Complete Guide

Introduction

If you’re a business owner, you might be wondering whether you can submit your own accounts to save money or maintain control. With the rise of the DIY economy, many entrepreneurs consider handling their own bookkeeping and tax filings. However, while it might seem straightforward, there are potential pitfalls that could lead to costly mistakes.

This guide explores when you can confidently do your own accounts and when it’s best to seek professional help.

Can You Do Your Own Accounts?

1. Understanding Your Business Structure

The complexity of submitting your accounts depends on whether you’re self-employed or running a limited company. Here’s how they differ:

• Self-Employed: You file a Self-Assessment Tax Return.
• Limited Company: You must prepare statutory accounts, a corporation tax return, and ensure compliance with Companies House and HMRC regulations.

2. DIY Accounting for Self-Employed Individuals

If you’re self-employed with minimal expenses, you might be able to handle your own accounts. Here’s when it’s manageable:

• Your income is straightforward (e.g., a sole trader earning through one income stream).
• You have minimal expenses and understand what can be claimed.
• You don’t own assets requiring capital allowances or depreciation.
• You don’t need to register for VAT.

If the above applies, using HMRC’s online system or software like QuickBooks or Xero can help you file your Self-Assessment Tax Return. However, if you have assets, VAT obligations, or a mix of personal and business expenses, an accountant can help you optimize tax savings.

3. Accounting for Limited Companies: Why It’s More Complex

Handling your own accounts as a limited company director is far more complicated. Here’s why:

• You must submit statutory accounts that comply with UK Accounting Standards.
• You need to file a Corporation Tax Return (CT600) with HMRC.
• You must submit annual accounts to Companies House.
• You must have a balance sheet showing assets, liabilities, and equity.
• You need to calculate and optimize salary and dividend payments.
• You may need to register for VAT and ensure compliance with RTI payroll obligations.
• You may have pension obligations and need to track national insurance contributions.

Without proper knowledge, you could underpay or overpay tax, miss compliance deadlines, or face fines and penalties.

The Risks of DIY Accounting

1. Not Knowing What You Don’t Know

Accounting involves legal and tax complexities that aren’t always obvious. Mistakes in financial reporting could lead to:

• Overpaying taxes by missing deductions.
• Underpaying taxes, leading to penalties.
• Filing errors that attract HMRC scrutiny.

2. Missed Opportunities for Tax Savings

Professional accountants don’t just file paperwork; they help businesses save money through tax planning, structuring, and compliance.

3. Compliance Risks

If you fail to meet deadlines or submit incorrect information, HMRC and Companies House can impose penalties.

When Should You Get an Accountant?

If you’re a limited company owner, hiring an accountant is highly recommended. However, even self-employed individuals can benefit from professional advice. Consider getting an accountant if:

• You’re earning a significant income.
• You have business expenses that require detailed tracking.
• You want to optimize tax efficiency.
• You need to file VAT returns.
• You don’t want the hassle of compliance and paperwork.

Conclusion

While self-employed individuals with simple finances might manage their own accounts, limited company owners should strongly consider hiring an accountant. Mistakes in tax filings and compliance can cost more than professional fees in the long run.

If you’re unsure whether you can do your accounts yourself, it’s worth booking a consultation with an accountant to explore your options and ensure you’re not leaving money on the table.

Need help with your accounts? Contact us today for expert advice on tax planning, compliance, and business growth strategies.

“Can I do my own accounts” is a question we get asked from time to time. Even if we don’t you can bet that it’s a question many new small business owners ask themselves. Can I submit my own tax return, can I submit my own corporation tax etc. This video gives you some background when it is possible and when we don’t advise it. Contact us for any more details.

You can find more details from companies house.