Online Accountant for a Limited Company: What UK Small Businesses Should Expect
What an online accountant does for a UK limited company: statutory accounts, Corporation Tax, payroll and what a monthly package should cover.
Limited-company accounting and tax support starts at £85pm+. The right online accountant should do more than upload figures and send occasional reminders. They should help you keep accurate records, meet filing deadlines and make sensible decisions as your company grows.
If you are searching for an online accountant for a limited company, it helps to know exactly what should be included, what may be charged separately and how to assess the provider before you appoint them.
What does an online accountant for a limited company do?
An online accountant works with you through cloud software, secure document portals, email, video calls or a combination of these. You may not visit an office, but the service should still cover the responsibilities your company has as a legal entity.
For most growing limited companies, the core service includes the following.
Statutory accounts and Corporation Tax
Your company must prepare annual statutory accounts and submit them to Companies House. It must also prepare a Company Tax Return and calculate its Corporation Tax position for HMRC.
A good provider should:
- Explain what records and documents are needed
- Prepare your year-end accounts
- Review adjustments such as accruals, prepayments and fixed assets
- Prepare and file the Company Tax Return
- Calculate the Corporation Tax due
- Explain when the company needs to pay
- Answer reasonable questions about the submitted figures
The accounts and the tax return are connected, but they are not the same filing. Your engagement letter should make clear whether both are included in your monthly package.
For a useful overview of the main filing dates, see the official deadline guidance for private limited companies.
Confirmation statements
A confirmation statement keeps key company information up to date. This can include details about directors, shareholders, the registered office, the company’s activities and people with significant control.
Some online accountants include the annual confirmation statement in their standard service. Others charge for it separately. Either approach can be reasonable, provided it is explained clearly before you sign the engagement letter.
Ask:
- Who prepares the confirmation statement?
- Who checks that the company information is accurate?
- Is the filing fee included?
- Will you be reminded before the due date?
- What happens if your company details change during the year?
Bookkeeping and VAT returns
Bookkeeping is the foundation for accurate accounts. Depending on your package, an online provider may reconcile your bank account, process sales and purchase invoices, review transactions and maintain your digital records.
If your company is VAT registered, the service may also include VAT return preparation and submission using compatible accounting software. Your accountant should help you understand which transactions are included in the VAT return and identify issues such as missing invoices or unusual transactions.
Bookkeeping and VAT support are often priced according to the level of activity involved. Before appointing an online small business accountant, check whether the monthly fee covers:
- Bank feeds and bank reconciliations
- A stated number of monthly transactions
- Sales invoices and purchase bills
- Credit notes and expense claims
- VAT return preparation
- Queries about VAT treatment
- Corrections to historic bookkeeping
Some providers include bookkeeping up to an agreed level and charge separately for catch-up work, complex corrections or additional VAT returns.
Payroll, salary and dividends
A limited company director may take money from the company as a salary, dividends or a combination of both. The right approach depends on the company’s circumstances and should not be based on a generic online formula.
An online accountant may provide:
- Director payroll
- Payroll for employees
- PAYE registration and reporting
- Real Time Information submissions
- Payslips
- Pension administration support
- Salary planning
- Dividend calculations
- Dividend vouchers and minutes
- Directors’ loan account reviews
Salary and dividends are treated differently for tax and company law purposes. Dividends must be supported by available distributable profits and appropriate company records. Your accountant should explain what is being recommended and what paperwork needs to be retained.
Check whether payroll and dividend support are included in your monthly package or treated as additional services. A package that appears inexpensive may not cover the director payroll or dividend documentation you actually need.
What is usually included in a monthly package?
Packages vary, so the important point is not simply the headline price. It is what you receive for that price.
Limited-company accounting and tax support starts at £85pm+. A typical package may include:
- Routine accounting support
- Annual statutory accounts
- Corporation Tax return preparation
- Basic bookkeeping or bookkeeping oversight
- Confirmation statement support
- Email or portal-based queries
- Deadline reminders
- Year-end accounts preparation
Services that may be charged separately include:
- Extensive bookkeeping or historic catch-up work
- VAT registration
- VAT returns where they are not included
- Payroll for directors or staff
- Dividend paperwork
- Management accounts
- Companies House changes
- Tax planning projects
- HMRC correspondence or enquiries
- Specialist work involving unusual transactions
Do not assume that “full accounts” means every accounting task is included. Ask for a written list of inclusions and exclusions before you compare online accountants for limited companies.
How year-end should work
Year-end should not be a last-minute exchange of files. Your provider should explain the process early and give you a clear timetable.
A well-managed process usually includes:
- Confirming the company year-end and filing dates.
- Reconciling bank accounts, payment platforms and finance agreements.
- Checking unpaid invoices and outstanding bills.
- Reviewing fixed assets, stock and director balances.
- Identifying any missing records.
- Preparing draft accounts and discussing significant adjustments.
- Calculating Corporation Tax.
- Agreeing the final figures with you.
- Filing the accounts and Company Tax Return.
- Confirming what the company needs to pay and by when.
The first accounts deadline can differ from later annual deadlines. Corporation Tax payment and Company Tax Return dates are also separate from the Companies House accounts deadline. Your accountant should track each date rather than treating “year end” as one single deadline.
How to assess an online provider before appointing them
A digital service can be convenient, but convenience should not replace proper checks.
Ask who will handle your work
Will you have a named accountant or an anonymous support queue? Find out who reviews your accounts, who answers technical questions and who takes responsibility at year end.
You should also ask what happens if your usual contact is unavailable.
Check response times
Ask how quickly routine questions are normally answered and how urgent issues are handled. An online accountant does not need to be available at all times, but the service should have clear communication standards.
Understand the software
Find out which bookkeeping, payroll and document-sharing software is used. You should know:
- How you upload documents
- Whether bank feeds are supported
- Who owns the data
- How you access records if you leave
- Whether the software cost is included
- How long records are retained
Cloud accounting can make collaboration easier, but you should still understand how your information is protected and who can access it.
Review the engagement letter
The engagement letter should state the services being provided, the fee, payment terms, responsibilities on both sides, deadlines, communication arrangements and additional charges.
It should also explain what the accountant needs from you. For example, you may remain responsible for providing complete records, checking draft accounts and approving information submitted on the company’s behalf.
Check professional and regulatory standing
The title “accountant” is not protected in the UK. This means anyone may use the title, regardless of whether they belong to a professional body. Professional body membership is therefore a meaningful check when you are comparing providers.
Ask whether the person or firm:
- Belongs to a recognised professional body
- Is authorised to provide services to the public
- Holds a current practising certificate where one is required
- Is registered for anti-money-laundering supervision
- Has appropriate professional indemnity insurance
- Can explain how client data is stored and protected
You can ask for registration details and confirm them directly with the relevant body. Do not rely solely on a logo or claim displayed on a website.
We check the credentials and regulatory standing of our accountants before we introduce them. Every accountant we work with is vetted for their qualifications, membership of a registered body for public practice, and AML registration, and your details are shared only with a vetted few who fit your brief. Always confirm a firm's registration, supervision and cover directly before you appoint them.
Is an online accountant right for your company?
An online accountant may suit a limited company that wants straightforward communication, digital records and predictable support without relying on face-to-face meetings.
It can be particularly useful if:
- You work remotely
- Your records are already digital
- You want regular access to bookkeeping information
- You need payroll and tax support in one place
- Your business is growing beyond basic self-managed accounts
- You want help tracking filing dates
- You prefer email, video calls and secure portals
The best fit depends on the company’s activities, transaction volume, VAT position, payroll needs and plans for growth. The cheapest option is not always the most suitable, especially if important services are excluded.
Accountant Search is a curated directory and digital matchmaking and referral platform. We collect your brief and introduce you to a vetted few accountants who may fit your company’s needs, rather than presenting an unfiltered list.
Find an online accountant for your limited company
If you need an online accountant for a limited company, tell us about your business, the support you need and how you prefer to work. Complete the Accountant Search match brief and we can introduce you to suitable accounting and tax providers.
If you are a director who also needs a personal tax return, use the Self Assessment registration form. A Self Assessment tax return is £300 inc VAT.