YF Accounting11 min read
Do it yourself on GOV.UK if you are the only director, you have no partners, investors or staff in sight and you are comfortable with a Government Gateway account; use a formation agent if you mainly want speed, a registered office address and a bundle you can buy today; use an accountant if you want the company set up properly for tax from day one, with the share structure, Corporation Tax, PAYE and VAT registrations, bookkeeping and deadlines all handled by one person. Companies House charges £100 to register a company online in 2026 whoever files the application, so the real question is what you are paying for around that fee.
This article compares the three routes honestly, including the cases where paying anyone is a waste of money. If you already know you want it done for you, our company formation service explains what we include. Every fee and deadline below was checked against gov.uk on 9 November 2026.
What Companies House actually charges in 2026
Registering a private limited company costs £100 online or through filing software, or £124 by post, which takes 8 to 10 days. A same day incorporation through software costs £156. Online applications are usually completed within 24 hours, and the online service normally sets the company up for Corporation Tax at the same time. You can also register as an employer for PAYE in the same application if you will be paying yourself a salary.
Once the company exists, the ongoing Companies House fees are modest: the confirmation statement costs £50 a year online (£110 on paper), a change of name is £20 online, and if it all comes to nothing a voluntary strike off is £13 online.
The point to hold onto is that the £100 is the same whoever submits the form. A formation agent or an accountant is not getting you a cheaper incorporation. What they charge for is everything around it: the advice before you file, the registrations after, and the first year of getting things right. Judge each route on that, not on the headline fee.
Route 1: doing it yourself on GOV.UK
The GOV.UK service is good and it is deliberately simple. Before you start you will need a Companies House personal code, which you get by verifying your identity through GOV.UK One Login, because identity verification is now a legal requirement for directors. Then you need a company name that passes the rules, a registered office address and a registered email address, a SIC code describing what the business does, details of the directors, shareholders and people with significant control, and a decision on the articles of association. Most small companies adopt the model articles.
Our step-by-step guide to forming a limited company walks through every screen, and the identity verification post covers the personal code. If you follow those two you will end up with a company, usually within a day, for £100.
What you do not get is anyone asking the questions that matter later. Nobody checks whether a spouse or partner should hold some of the shares, whether one share class is enough, or whether a limited company is the right structure at all. Nobody tells you that the registered office address goes on the public register forever, which is how a lot of directors end up with their home address visible to anyone who searches. And nobody decides for you whether to register for VAT voluntarily, or whether to run a payroll.
The mistakes we see most often from DIY formations are a home address on the register, a single share held by one person when the household would have paid less tax with two shareholders, a registered office that nobody actually checks, and an accounting reference date that nobody chose. None of them are fatal, but several cost more to fix than an accountant would have charged to get them right.
Route 2: a company formation agent
Formation agents are online businesses that file the incorporation for you and sell what sits around it. The typical bundle includes a registered office address so your home stays off the register, mail forwarding, a referral to a business bank account, and optional add-ons for VAT and PAYE registration, printed certificates and company registers. The model is usually a low headline price, sometimes advertised as free, with the real money made on the add-ons and on subscriptions that renew in year two.
That is not a criticism. If you know exactly what you want, you have already thought about shares and structure, and you need a company this afternoon with an address you can use, an agent is quick and inexpensive. Free formation offers are real too, in the sense that the agent waives its own fee, but the £100 Companies House fee still has to be paid by someone and the offer is generally funded by a bank referral or a subscription. Read what you are committing to for the second year before you click.
What an agent does not do is advise you. The person at the other end is processing an order, not asking whether you should be a sole trader for another year, or how you plan to pay yourself. Once the certificate arrives you are on your own with HMRC, and the agent’s job is finished.
Route 3: an accountant
What is different when an accountant forms the company
The incorporation itself is the smallest part of the job. The difference starts before you file. A good accountant will first ask whether you should incorporate at all, because for some people another year as a sole trader is the better answer; our sole trader vs limited company comparison sets out when each wins. If a company is right, the share structure gets designed around how you will take money out, which is where salary versus dividends planning starts, and the accounting reference date gets chosen on purpose.
After incorporation the HMRC side gets done together rather than piecemeal: Corporation Tax activated, PAYE registered if you will draw a salary, VAT registered if you need or want it, and the company’s online accounts set up so you can actually see what HMRC is asking for. Bookkeeping software is connected before the first invoice goes out, you get a diary of every deadline for the first two years, and there is one person to ring when the first brown envelope arrives.
What it costs with YF Accounting
Our company formation is a fixed fee from £150, which includes the registrations and first year setup advice described above, with the £100 Companies House fee on top because that is paid to Companies House whoever files. Ongoing limited company accounting then starts from £50 a month, covering your accounts, Corporation Tax return, confirmation statement and unlimited support. Everything is on the pricing page and nothing is billed by the hour.
DIY vs agent vs accountant at a glance
| Do it yourself | Formation agent | Accountant | |
|---|---|---|---|
| Cost | £100 Companies House fee only | £100 fee plus the agent’s charge and any add-ons; free deals are funded by referrals or subscriptions | £100 fee plus a fixed formation fee (YF from £150), usually with monthly accounting afterwards |
| Time | Usually within 24 hours once you have your personal code | Usually within 24 hours; same day available | Usually within 24 hours after a short call about structure |
| What is included | The incorporation and, if you tick the boxes, Corporation Tax and PAYE set up | Incorporation, often a registered office and mail forwarding, bank referral, optional VAT and PAYE | Structure advice, share design, incorporation, all HMRC registrations, software set up, deadline diary |
| What happens after | You deal with HMRC and Companies House yourself | You deal with HMRC yourself; the agent handles the address and renewals | The same accountant runs the accounts, tax and filings, one point of contact |
| Best for | A confident single director with a simple plan | Someone who knows exactly what they want and needs it today | Anyone who wants the tax side right from day one, or who will pay themselves, hire or take on partners |
Five questions that decide it
Will you take on partners or investors? If anyone other than you will own shares, now or later, the share structure needs thought before you file. Changing it afterwards is possible but it costs more and can have tax consequences. This alone points to an accountant.
Will you employ anyone, including yourself on a salary? Most directors pay themselves a small salary and the rest as dividends, which means a PAYE scheme from the start. If payroll is coming, you want it set up in step with the rest of the tax registrations.
Will you pass the £90,000 VAT threshold in year one? You must register for VAT once your taxable turnover for the last 12 months goes over £90,000, or if you expect it to in the next 30 days. If you are anywhere near that, or you sell to VAT registered businesses and would benefit from registering voluntarily, the decision belongs in the formation conversation. Our guide to approaching the £90,000 VAT threshold explains the timing.
Do you want your home address on the public register? The registered office is public and permanent in the filing history. If you do not have business premises, you need an address service from an agent or an accountant, or you accept your home being searchable.
Do you want one person handling everything after incorporation? If the answer is yes, the formation is really the start of an accounting relationship and it makes sense for the same firm to do both. If you are happy to handle HMRC yourself, DIY or an agent will do.
If you answered no to all five, do it yourself and keep the money. If you answered yes to two or more, an accountant will almost certainly save you more than the fee in the first year.
What happens after incorporation, whichever route you take
The certificate of incorporation is the beginning, not the end. HMRC will post the company’s 10 digit Unique Taxpayer Reference to the registered office, and you need to make sure Corporation Tax is active on the company’s business tax account from the date you start doing business, which HMRC counts as buying, selling, advertising, renting premises or employing someone. Open a business bank account, because company money and your money must be kept apart. Register for PAYE if you will pay a director’s salary, and for VAT if you need to or choose to; our VAT registration guide covers the steps.
Issue share certificates and keep the statutory registers up to date. Then the recurring deadlines start. The confirmation statement is due every year at £50. Your first accounts are due at Companies House 21 months after the date you registered, and every year after that 9 months after the financial year end. Corporation Tax is payable 9 months and 1 day after the end of each accounting period, and the Company Tax Return is due 12 months after it. Because first accounts usually run for more than 12 months, the first year often needs two tax returns and two payment dates, which catches a lot of new directors out. Our limited company accounting guide collects all of this in one place.
Frequently asked questions
Is a company formation agent worth it?
Yes, if what you want is speed, a registered office address and a tidy bundle, and you have already decided on your structure and shareholders. The agent is not making the incorporation cheaper, because the £100 Companies House fee applies whoever files, so you are paying for convenience and the address service. If you want advice on shares, tax registrations or whether to incorporate at all, an agent is the wrong tool.
Can an accountant set up my limited company?
Yes, and most do it as a standard service. The difference from an agent is that the accountant designs the share structure, chooses the accounting reference date, handles the Corporation Tax, PAYE and VAT registrations together and sets up your bookkeeping before you start trading. Our company formation service is a fixed fee from £150 plus the £100 Companies House fee, and the same person then looks after the company’s accounts and tax.
How much does it cost to set up a limited company in 2026?
Companies House charges £100 online or by software, £124 by post, or £156 for a same day incorporation through software. On top of that you pay whatever an agent or accountant charges for their work, plus any registered office service. Doing it yourself costs exactly £100. With YF Accounting the formation fee is from £150 plus the £100, and ongoing limited company accounting starts from £50 a month, with everything listed on our pricing page.
Can I set up a limited company for free?
No. The Companies House fee of £100 online is payable on every application, so a free formation offer only means the agent has waived its own charge. That is usually funded by a bank account referral or by a registered office or software subscription that renews at full price in year two. It can still be good value, but check the renewal terms before you commit.
How long does company formation take?
Online applications are usually registered within 24 hours, whether you file yourself, through an agent or through an accountant’s software. Postal applications take 8 to 10 days, and a same day service is available through software for £156. The step that most often adds time is identity verification, so get your Companies House personal code through GOV.UK One Login before you start the application.
Ready to set up your company?
If you would rather have the structure, the registrations and the first year’s deadlines handled by one person, you can set up your limited company with YF for a fixed fee from £150, and then carry on with limited company accounting from £50 a month, sole trader accounts from £35 a month, or a growing business package from £200 a month. Fixed fees, one point of contact, unlimited support and plain English throughout. Book a free call to talk it through, or ring us on 0161 531 0959. There is no obligation, and if doing it yourself is the right answer for you, we will say so.
Founder of YF Accounting, a fixed-fee, fully digital accountancy practice in Manchester serving SMEs, sole traders and landlords across the UK. One point of contact, unlimited support, no surprise bills.
Related reading
Starting a Business in Salford in 2026/27: A Practical Guide from a Local Accountant
Hiring Your First Employee: Payroll, Pension and the Real Cost in 2026/27
Limited Company Year End Explained: What Gets Filed, When, and What It Should CostThis article is part of our Limited Company Tax guide. See the full topic for related reads.