A limited company faces more complex accounting obligations than a sole trader: Corporation Tax (CT600), Companies House accounts, payroll RTI submissions, dividend records and (usually) VAT returns. The right software handles all of this — or at least the parts your accountant doesn't cover.
What limited companies need — feature comparison
Feature
FreeAgent
Xero
Crunch
QuickBooks
Corporation Tax CT600 filing
✓ direct
Via accountant
✓ direct
Via accountant
Companies House accounts
✓
Via accountant
✓
Via accountant
Payroll / RTI submissions
✓
✓ (add-on £5+)
✓
✓ (add-on)
Dividend vouchers / tracking
✓
Manual journals
✓
Manual journals
MTD VAT
✓
✓
✓
✓
Accountant included
No
No
Yes
No
From (ex-VAT)
£0–£19/mo
£16/mo
£24.50/mo
£14/mo
Our top picks for limited companies
FreeAgentOften freeBest for contractor-directors
From £0 (free with Starling/NatWest) or £19/mo + VAT
CT600 filing ✓ Direct to HMRC
Dividends ✓ Built-in vouchers & tracking
FreeAgent is the go-to for single-director limited companies and contractors. It handles Corporation Tax calculations and CT600 filing, dividend vouchers, director payroll (RTI), MTD VAT returns, and Companies House accounts — all in one product. Free with NatWest/RBS/Starling business accounts makes it unbeatable on value.
Pros
Free with NatWest, RBS, Ulster Bank or Starling business account
CT600 Corporation Tax filing built in (no separate software needed)
Dividend vouchers and distributable reserves tracked automatically
Director payroll and RTI submissions included
Cons
Less suited to companies with multiple employees or complex multi-entity structures
Fewer third-party integrations than Xero or QuickBooks
*Free for life with a qualifying NatWest, RBS, Ulster Bank or Starling business account. We may earn a commission if you sign up via our link.
CrunchIncludes qualified accountant
From £24.50/mo + VAT
CT600 filing ✓ Handled by Crunch accountant
Accountant Included — dedicated account manager
Crunch combines accounting software with a dedicated qualified accountant. For limited company contractors who want total peace of mind without hiring a separate accountant, Crunch's all-in-one model — software + accountant + CT600 + payroll — is often cheaper than software plus a traditional accountant separately.
Pros
Qualified accountant included — they file CT600, annual accounts, handle HMRC queries
Dedicated account manager — single point of contact
Built specifically for limited company contractors
Handles all compliance: Corporation Tax, VAT, payroll, SA
We may earn a commission if you sign up via our link — this doesn't affect our editorial independence.
XeroBest for VAT-registered Ltd companies
From £16/mo + VAT (Starter) / £33/mo (Standard)
CT600 filing Via accountant integration
VAT MTD ✓ Industry-leading
Xero is the accountant's platform of choice for limited companies that are VAT-registered and growing. It handles payroll (via add-on), MTD VAT returns, and produces the accounts your accountant needs for CT600 and Companies House filing. Best if you already have an accountant and want to give them a platform they'll love.
Pros
Best VAT handling and MTD bridging in the market
Unlimited users — good for growing businesses with a team
1,000+ integrations — scales with your business
Loved by accountants — smooth collaboration tools
Cons
CT600 and Companies House filing require a separate accountant or third-party software
Payroll is an add-on (extra cost)
Starter plan too restrictive for busy limited companies
We may earn a commission if you sign up via our link — this doesn't affect our editorial independence.
QuickBooksBest for integrations
From £14/mo + VAT (Simple Start)
CT600 filing Via accountant or TaxCalc integration
Payroll Available as add-on
QuickBooks is better suited to limited companies that sell products, have e-commerce revenue or use multiple platforms (Shopify, Stripe, Amazon) — its integration library is unmatched. CT600 filing requires a third-party tool or accountant, but QuickBooks produces all the data your accountant needs.
Pros
Largest integration ecosystem — Shopify, Stripe, PayPal, Amazon
Strong inventory management (Plus plan)
Good mobile app and receipt capture
Cons
CT600 requires separate software or accountant
Price rises significantly after introductory period
Dividend tracking is manual journals — not built for director-contractors
We may earn a commission if you sign up via our link — this doesn't affect our editorial independence.
Director tip: Accounting software is a fully allowable company expense — reducing your taxable profit before Corporation Tax. At 19% CT, a £19/mo FreeAgent subscription costs your company £15.39 net. At 25% CT it costs £14.25/mo. See our director salary vs dividends guide and optimal salary/dividend split to maximise your overall take-home.
FreeAgent and Crunch both handle CT600 Corporation Tax filing directly from within the software. FreeAgent calculates the CT liability and files directly to HMRC. Crunch's included accountant handles CT600 on your behalf. Xero and QuickBooks produce the accounts and figures but require a separate accountant or third-party software (e.g. TaxCalc) to file the CT600.
With FreeAgent or Crunch, a single-director limited company with straightforward affairs can handle all compliance without a separate accountant — CT600, annual accounts, payroll, VAT and dividend records are all covered in-software. However, if you have complex expenses (R&D, EIS/SEIS, employee share schemes, multiple directors or entities), professional advice adds significant value.
FreeAgent and Crunch both have dedicated dividend management: you record dividend vouchers, the software checks distributable reserves, and director loan accounts are updated automatically. Xero and QuickBooks handle dividends through manual journal entries — workable but less intuitive for contractor-directors paying regular dividends.
The small profits rate is 19% on profits up to £50,000. The main rate is 25% on profits of £250,000 and above. Between £50,000 and £250,000, marginal relief applies — the effective marginal rate on profits in this zone is approximately 26.5%. See our optimal salary/dividend split guide for worked examples at different profit levels.