Limited company running costs: what you pay each year (2026)

In short: The only government fee every limited company must pay each year is Companies House's confirmation statement fee: £50 online or £110 on paper (GOV.UK: Companies House fees). Filing accounts and the Company Tax Return (CT600) carries no government fee, and the ICO data protection fee starts at £52 unless an exemption applies. The rest depends on who prepares your accounts.

Every fee here was checked on 28 September 2026. Take the 30-second check to see whether Taxley fits your company, or compare Taxley's prices.

How much does it cost to run a limited company per year in 2026?

In 2026 a small limited company pays Companies House £50 a year for a confirmation statement filed online, and pays the ICO £52 for the data protection fee unless an exemption applies (GOV.UK: Companies House fees). Filing accounts and tax returns carries no government fee, so the other main cost is software or an accountant to prepare them.

Limited company running costs fall into two kinds. Statutory fees are set by law: the confirmation statement fee, and the data protection fee for a company that isn't exempt. Services are costs you choose and can often cut by doing the work yourself: software or an accountant for the accounts and CT600, payroll software, and VAT software once the company registers for VAT. HMRC charges nothing to file, but its own online filing service for company accounts and tax returns closed on 31 March 2026 (GOV.UK: Closure of HMRC's file-your-accounts-and-tax-return service). The table lists each yearly item as checked on 28 September 2026.

A business bank account is a service cost whose price varies by bank and by account. GOV.UK says a company's banking must be separate from the directors' personal banking, and that the simplest way to do that is a business bank account (GOV.UK: Company and accounting records: your responsibilities), so compare current tariffs before you choose. Taking on staff adds employers' liability insurance, with cover of at least £5 million, apart from exceptions such as employing only a family member (GOV.UK: Employers' liability insurance). Bank charges and insurance premiums are left out of the worked example in this guide.

What does Companies House charge a limited company each year?

Companies House charges a limited company one yearly fee: £50 for the confirmation statement filed online or through software, or £110 on paper (GOV.UK: Companies House fees). Filing annual accounts has no fee, verifying a director's identity through GOV.UK One Login is free, and changing the registered office address has no fee either.

Every company, including dormant and non-trading companies, must file a confirmation statement at least once a year, and the £50 fee is paid with the first statement in each 12-month payment period; further statements in that period cost nothing (GOV.UK: Filing your company's confirmation statement). Identity verification became a legal requirement on 18 November 2025, and each existing director gives a Companies House personal code in the company's next confirmation statement. Verifying through GOV.UK One Login is free of charge, while an authorised agent such as an accountant may charge for doing it (GOV.UK: Verifying your identity for Companies House). The statement can't be filed until every director is verified.

Annual accounts and dormant company accounts are both listed as "No fee" in Companies House's own fee table, which also shows no fee for changing the registered office address (Companies House: Companies House WebFiling Help and Support). The accounts route will change, though: GOV.UK says that from 1 April 2028 you must use commercial software to file accounts with Companies House (GOV.UK: File your company's annual accounts with Companies House). A company that files its accounts on the Companies House service today should budget for software from then. Our guide to software-only accounts filing from 2028 explains the change and what it means for small companies.

A company's registered office must be a physical UK address in the same country the company is registered in, and "appropriate": post sent there has to reach the company, with delivery confirmable by the sender (GOV.UK: Rules for a company's registered office and email address). A PO Box can't be used. The address is public, so a director who doesn't want their home on the register can use an accountant's or solicitor's address with permission, or an agent's address service, and those services may charge. A company without a compliant address could be struck off.

Does a small limited company have to pay the ICO data protection fee?

A limited company that uses personal information must pay the ICO data protection fee unless it is exempt (ICO). A micro organisation, with turnover of up to £632,000 or no more than 10 staff, pays the tier 1 fee of £52 a year, or £47 if it pays by Direct Debit.

The ICO sets three tiers of data protection fee (ICO). Tier 1, for micro organisations, is £52. Tier 2, for turnover of up to £36 million or no more than 250 staff, is £78. Tier 3, for everyone else, is £3,763. The fees rose on 17 February 2025 from £40, £60 and £2,900. Staff counts include office holders, so a company's directors count. The fee is paid every 12 months, and as a statutory fee it is outside the scope of VAT (ICO).

The ICO says many organisations can rely on an exemption from the data protection fee. No fee is due if the company processes personal data only for one or more exempt purposes, which include staff administration; its own advertising, marketing and public relations; accounts and records; not-for-profit purposes; and processing without an automated system such as a computer (ICO). A company that uses personal data for a purpose outside the ICO's list pays. The ICO doesn't say how many small companies are exempt, so use its 10-minute self-assessment to check yours. Not paying a fee that's due can bring a fine of up to £4,350, and an exempt company still has its other data protection duties.

What does HMRC charge, and which software do you need?

HMRC charges no fee to file a Company Tax Return, run payroll or submit VAT Returns, but each now needs software. HMRC's online service for company accounts and tax returns closed on 31 March 2026, so a company files its CT600 through commercial software unless it has a reasonable excuse or files in Welsh (GOV.UK: Closure of HMRC's file-your-accounts-and-tax-return service).

HMRC says CT600 software should let you file a CT600, a Corporation Tax computation and your company accounts (GOV.UK: Closure of HMRC's file-your-accounts-and-tax-return service). It comes as pay-per-filing web services, annual subscriptions, bookkeeping software with a CT600 module or desktop tax software. In our check on 27 September 2026, 12 products published an all-in price for a micro-entity trading company's accounts and CT600, from £15 to £166.80, and not all included Companies House filing. Our guides to what a CT600 costs to file and choosing CT600 software compare the types.

A company that runs payroll must register as an employer before the first payday, even when the only person it pays is its sole director (GOV.UK: Register as an employer). HMRC's Basic PAYE Tools is free payroll software for businesses with fewer than 10 employees: it works out tax and National Insurance and sends the payroll reports to HMRC (GOV.UK: Download HMRC's Basic PAYE Tools). HMRC says it has some limitations, and GOV.UK also lists other free payroll software for businesses with fewer than 10 employees, so a small company can run its own payroll without paying for software.

VAT software is needed only once a company is VAT-registered, which is compulsory when, for example, taxable turnover for the last 12 months goes over £90,000 (GOV.UK: Register for VAT: When to register for VAT). A VAT-registered business must keep its VAT records and file VAT Returns using software compatible with Making Tax Digital, or bridging software that connects a spreadsheet to HMRC (GOV.UK: Find software compatible with Making Tax Digital for VAT). HMRC's software finder says most listed products require payment, though some free versions are available (HMRC: Find software for Making Tax Digital for VAT). The finder leaves each supplier to define "free", so check what a free version includes before you rely on it.

What does a one-person limited company pay in a year?

In our worked example, a one-person micro-entity trading company that does its own filing pays £102 a year in statutory fees: £50 for the confirmation statement and £52 for the ICO's tier 1 fee. Taxley's fee for its accounts and CT600 is £44.50 (promotion price until 31 Dec 2026; £89.00 from 1 Jan 2027) and covers filing at both Companies House and HMRC.

The example assumes one director who owns all the shares, turnover under £632,000, no VAT registration, and a small salary run through HMRC's free Basic PAYE Tools (GOV.UK: Download HMRC's Basic PAYE Tools). The trading company uses personal data beyond the ICO's exempt purposes, so it pays tier 1. The dormant company doesn't process personal data electronically, which the ICO says means no fee is due for a dormant business (ICO). It also files dormant accounts and has received a notice to deliver a Company Tax Return, so it files a nil CT600 (GOV.UK: Dormant for Corporation Tax). Fees were checked on 28 September 2026.

The example totals can move either way. Paying the ICO by Direct Debit saves £5, and filing the confirmation statement on paper instead of online adds £60 (GOV.UK: Companies House fees). A dormant company that HMRC hasn't asked for a return doesn't file a CT600, and its dormant accounts carry no Companies House fee, so its statutory bill can be the £50 confirmation statement alone (GOV.UK: Dormant for Corporation Tax). A small company preparing FRS 102 Section 1A accounts pays Taxley £84.50 (promotion price until 31 Dec 2026; £169.00 from 1 Jan 2027) instead of the micro-entity price. The example totals use today's promotion prices.

How much can late filing penalties add to the yearly bill?

One late filing can cost more than a whole year's running costs. Companies House fines a private company £150 for accounts up to a month late, rising to £1,500 after six months, and doubles the penalty when accounts are late two years running (GOV.UK: Late filing penalties). HMRC charges £200 the day a CT600 is late.

HMRC's fixed penalties doubled for returns with a filing date on or after 1 April 2026, from £100 to £200 (GOV.UK: Increases to Corporation Tax late filing penalties). The schedule is now £200 on the first day and another £200 at three months, then 10% of the tax still unpaid if the return is 6 months late (18 months after the accounting period ends), rising to 20% if it is 12 months late (2 years after the period ends); three late returns in a row raise each £200 to £1,000 (GOV.UK: Company Tax Returns: Penalties for late filing). The first two penalties are fixed amounts, so they apply whatever tax the company owes. Our guide to what happens if you file your CT600 late covers appeals, and the Corporation Tax deadline calculator works out your filing and payment dates.

Should you pay an accountant or do the accounts and CT600 yourself?

GOV.UK says you can either get an accountant to prepare and file your company's tax return or do it yourself (GOV.UK: Company Tax Returns: Overview). Doing it yourself with software costs a fixed fee plus your time; an accountant charges for preparation and advice. A straightforward year suits software, while a year that needs judgement can justify professional help.

Accountant fees vary with the firm and the work; our guide to how much an accountant charges a limited company sets out dated, published fee ranges. An accountant earns the fee when the year involves R&D relief claims, terminal loss claims, consortium relief or an HMRC enquiry, and the do I need an accountant? page lists what Taxley doesn't handle. GOV.UK explains how to appoint an accountant as your tax agent; the directors stay responsible for the filings either way.

Taxley prepares the accounts and CT600 from your figures, then files the accounts at Companies House and the return at HMRC for one fee: £9.50 (promotion price until 31 Dec 2026; £19.00 from 1 Jan 2027) for a dormant company, £44.50 (promotion price until 31 Dec 2026; £89.00 from 1 Jan 2027) with micro-entity accounts, or £84.50 (promotion price until 31 Dec 2026; £169.00 from 1 Jan 2027) with small-company accounts. You pay when you file, with no subscription. Taxley needs the company's Companies House authentication code and its own Government Gateway user ID and password; it keeps the user ID, encrypted, and never keeps the password. Taxley doesn't file the confirmation statement, which you file on the Companies House service for £50 (GOV.UK: File your confirmation statement with Companies House).

Against the dormant prices that 12 other products published on 27 September 2026, Taxley's current dormant price is among the lowest-priced: the 3rd-lowest of the 13 that publish a price for a dormant company's return. Of the two cheaper dormant prices, one leaves out Companies House filing, and neither states whether VAT is included. Taxley's small-company (FRS 102 Section 1A) price was the 2nd-lowest of 5 products that publish a price for that case, on the same date. Take the 30-second check to see whether Taxley fits your company, or see every plan on the pricing page.

Frequently asked questions

Is there a yearly fee just to keep a limited company registered?

In effect, yes. Companies House charges £50 with the first confirmation statement filed online in each 12-month payment period, or £110 on paper. Every company must file a confirmation statement at least once a year, including dormant and non-trading companies.

What is the cheapest way to run a limited company?

File online rather than on paper, check whether an ICO exemption applies and pay by Direct Debit if it doesn't, use free payroll software if you have fewer than 10 employees, file every return on time, and prepare simple accounts and CT600s yourself with software.

Does a dormant company have any running costs?

Yes. A dormant company still files a confirmation statement, costing £50 online, and dormant accounts, which carry no Companies House fee. It files a CT600 only if HMRC sends a notice to deliver one, and pays the ICO fee only if it uses personal data without an exemption.

Does Taxley file the confirmation statement?

No. Taxley files the company's accounts at Companies House and its CT600 at HMRC for one fee, but you file the confirmation statement yourself on the Companies House service, where it costs £50 online. All directors must be identity-verified before it can be filed.