General information only, not financial advice. Grow & Guard is not authorised by the Financial Conduct Authority to give advice. It is not a personal recommendation. Check details with the provider and consider independent advice before making financial decisions.
What has changed for limited companies
For years, many small company directors filed their accounts and Company Tax Return together through a free joint service run by HMRC and Companies House. HMRC says that service closed on 31 March 2026. From 1 April 2026 you should use commercial software to file your annual accounts and Company Tax Return (the CT600) with HMRC. A paper return is only allowed if you have a reasonable excuse or are filing in Welsh.
The second change is at Companies House. In its update of 23 October 2026, Companies House confirmed that from April 2028 all UK companies must file their accounts in iXBRL format using commercial software, and its web and paper filing will close for accounts. The same update paused the plan to make small companies and micro-entities file a profit and loss account, so you can still file abridged or filleted accounts. You can keep using Companies House web services for other filings, such as the confirmation statement.
In short: your company now needs software for the CT600 and, from April 2028, for the accounts you send to Companies House. If you already use an accountant, ask which software they will file with.
The jobs your software needs to cover
A limited company has more paperwork than a sole trader. Before you compare prices, list the jobs you want the software to do:
- Day-to-day bookkeeping: bank feeds, invoices, bills, receipts and reports such as profit and loss.
- VAT: HMRC says all VAT-registered businesses should now keep VAT records and send VAT Returns using compatible software.
- Payroll: if you pay yourself or staff a salary through PAYE, you need payroll that reports to HMRC.
- Year-end: final accounts for Companies House and the CT600 with a Corporation Tax computation for HMRC.
- Your own Self Assessment: many directors also file a personal tax return for dividends.
The year-end job is the one to check carefully, because not every bookkeeping product files it, and some only file through an accountant.
Check HMRC's supplier list for self-filers
HMRC publishes a list of commercial software suppliers for Corporation Tax (last updated 12 October 2026). For each supplier it shows whether the software can produce and submit a CT600, submit iXBRL documents and whether it is suitable for self-filers. HMRC does not recommend or endorse any product on the list.
That last column matters if you file without an accountant. On the list we read, FreeAgent and Zoho were marked suitable for self-filers, while Xero Tax and Sage were marked not suitable for self-filers, which means they are aimed at accountants. Xero users can still buy a company accounts and tax option, described below, so check what the provider says about its own product as well as the list.
Three options compared on UK prices
These three cover bookkeeping and offer a route to year-end filing for a limited company. They are not the only choices. We compared published prices and features and have not used the software ourselves.
| Software | Price for a limited company | Year-end filing | Worth knowing |
|---|---|---|---|
| FreeAgent | £33 a month or £330 a year, excluding VAT (50% off the first six months or first year when we checked) | Final accounts and Corporation Tax return data, filed from FreeAgent | Free with a NatWest, Royal Bank of Scotland or Ulster Bank business account, or a Mettle account used monthly |
| Zoho Books | Free plan; Standard £12 a month, or £10 a month billed annually | CT600 and final accounts included on Standard; a £5 a year add-on on the free plan | Free plan has 1 user plus an accountant and up to 1,000 invoices a year |
| Xero | Ignite £18, Grow £39, Comprehensive £55, Ultimate £70 a month, excluding VAT | Company accounts and tax is an optional extra at £120 a year, excluding VAT | 90% off the first six months for new UK customers when we checked; payroll included from Grow |
FreeAgent prices its plans by business type, so the limited company plan includes payroll, MTD VAT returns, the director's Self Assessment and end-of-year filing in one price. It is a UK product with UK-based support. The free bank route can make it the cheapest full option if you already bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle (see our business bank accounts for limited companies).
Zoho BooksAd has the lowest entry price. Its free plan files MTD VAT returns, and the CT600 and final accounts option is available on it as a paid add-on, while Standard adds bank feeds for multiple accounts and three users. Zoho offers a 14-day free trial of its features when you sign up. Prices are shown per organisation, so check whether VAT is added at checkout.
XeroAd is widely used by UK accountants and has a large marketplace of add-on apps. The base plans cover bookkeeping and VAT, payroll is included for one person on Grow, and company accounts and tax costs £120 a year on top. Ignite limits you to 20 invoices and 10 bills, so most trading companies will look at Grow.
How to choose
- You file everything yourself: pick software marked suitable for self-filers on HMRC's list, then check it files to Companies House too.
- You bank with NatWest, Royal Bank of Scotland, Ulster Bank or Mettle: check whether you can get FreeAgent free before paying for anything.
- You want the lowest cost and few transactions: look at the Zoho Books free plan with the year-end add-on.
- You have an accountant: ask which software they support. Many work in Xero and file the year-end for you.
- You are a sole trader thinking of incorporating: our guide to MTD software for sole traders covers the self-employed side.
Deadlines and penalties worth knowing
HMRC says your Company Tax Return is due 12 months after the end of the accounting period it covers, and your Corporation Tax bill is usually due 9 months and one day after it. A late return costs £200 on day one, and another £200 at three months. Companies House has its own deadline for accounts, and late filing penalties for a private company start at £150 and reach £1,500, doubling if accounts are late two years in a row (see GOV.UK on late filing penalties). Software that shows your deadlines in one place helps you avoid both.
If you are moving from the closed HMRC service, Companies House advised saving at least three years of past filings, and HMRC says amended returns can be filed through software, on paper or by an agent.
Sources checked on 10 November 2026
- HMRC: filing company accounts and tax returns if you previously used the HMRC online service
- Companies House: update to accounts filing from April 2028 (23 October 2026)
- HMRC: commercial software suppliers for Corporation Tax
- HMRC: Making Tax Digital for VAT
- GOV.UK: Company Tax Returns
- GOV.UK: penalties for late filing of accounts
- FreeAgent, Zoho Books UK and Xero UK pricing pages (10 November 2026), reached through the links above
This guide is based on official guidance and the providers' published pricing pages. It is general information, not tax advice, so check your own obligations with HMRC or a qualified accountant.