Running a limited company in London presents exciting opportunities—but it also comes with distinct financial responsibilities. From managing cash flow and payroll to preparing year-end reports and filing with Companies House, getting your accounting right isn’t just about compliance—it’s about building a sustainable, growth-ready business.
In this 2025 edition of our essential guide, we break down the key areas limited company directors need to manage and how working with the right accountant can streamline the process.
Why Accounting Requirements Are Tighter Than Ever in 2025
In recent years, the accounting landscape for limited companies has evolved rapidly. With the expansion of Making Tax Digital (MTD), updated Corporation Tax rules, and greater transparency requirements under the Economic Crime and Corporate Transparency Act, directors must now ensure their reporting is timely, accurate, and fully compliant.
Failing to meet these standards doesn’t just result in penalties—it can impact creditworthiness, investor confidence, and even the company’s legal standing.
Core Accounting Duties for Limited Companies
Running a limited company involves more than managing a few invoices and receipts. Here are the key financial tasks directors are responsible for:
📌 Statutory Accounts
You must prepare full annual accounts in line with HMRC and Companies House requirements. This includes a balance sheet, profit and loss account, notes to the accounts, and a director’s report.
📌 Corporation Tax Filing
You’ll need to calculate your company’s profits, account for allowable expenses, and submit a CT600 return annually—often within strict deadlines.
📌 PAYE and Payroll
If you have employees (even just yourself as a director), you’ll need to run payroll and submit PAYE data in real time to HMRC.
📌 VAT Returns
If your turnover exceeds the £90,000 threshold (2025 update), you’ll need to register for VAT and submit quarterly returns.
📌 Record Keeping
By law, limited companies must keep records for a minimum of 6 years, including invoices, receipts, payroll, and company transactions.
Why Statutory Accounts Matter More Than You Think
Statutory accounts are not just a legal requirement—they provide insight into your business’s financial health and are often used by lenders, investors, and stakeholders to assess your stability and potential.
Preparing them accurately and on time ensures your business:
- Avoids late filing penalties
- Meets audit and tax obligations
- Presents a strong financial position to external parties
That’s why Fusion Accountants’ statutory accounts service supports limited companies with everything from preparation and submission to explaining what the numbers actually mean for your business strategy.
Common Mistakes Directors Should Avoid
Even experienced directors can run into avoidable pitfalls, such as:
- Leaving accounts preparation until the last minute
- Misclassifying personal expenses as business costs
- Missing Corporation Tax deadlines
- Using outdated software or manual tracking methods
- Failing to understand changes in accounting standards
Working with a proactive accountant helps you avoid these traps and stay ahead of the curve.
The Benefits of Partnering with a Specialist
Fusion Accountants supports limited companies across London with a dedicated, hands-on approach. Their team doesn’t just submit forms—they help business owners:
- Transition smoothly to digital record-keeping
- Understand company finances in plain English
- Optimise tax efficiency
- Plan for growth with accurate forecasting and reporting
Final Thoughts
In 2025, limited company directors face more pressure—and more opportunity—than ever before. Whether you’re a startup scaling fast or an established business tightening your systems, having a reliable accounting partner is critical.
Fusion Accountants’ statutory accounts service supports limited companies by taking the burden off directors, reducing risk, and ensuring your company is always one step ahead.
