· About 2,100 words · Part of the contractor accountant cluster.

Running a UK Ltd contractor company means hitting a recurring set of statutory, tax and operational obligations. This checklist walks the full annual cycle — what to do weekly, monthly, quarterly and annually — so nothing falls through. Whether you have an accountant or DIY, knowing the full picture matters; you're the company director and the legal accountability sits with you.

Weekly tasks

The day-to-day rhythm of bookkeeping. Set aside 30–60 minutes once a week.

1. Reconcile bank transactions — match incoming bank feed transactions against invoices, expenses and other categories in your accounting software
2. Capture receipts — photograph or upload any business expense receipts. Categorise (travel, software, training, etc.)
3. Send any due invoices — review your pipeline; send invoices for completed work as soon as agreed terms allow
4. Chase any overdue invoices — see our chasing unpaid invoices guide
5. Move money to tax / VAT pots — many contractors hold separate sub-accounts for accumulated CT, VAT and dividend tax. Top them up weekly so you're not surprised at quarter end
6. Review cash position — sense-check your runway. Particularly important for variable-revenue contractors

Weekly is the right cadence for these — leaving them monthly creates a stale-data backlog that becomes harder to reconstruct.

Monthly tasks

The monthly rhythm — typically completed in the first week after month-end.

1. Run monthly payroll — process director salary (and any other employees). RTI submission to HMRC on or before pay date
2. Pay PAYE / NIC to HMRC — due by 22nd of the following month (electronic). For sole-director Ltds with salary set at the NI threshold, often £0 — but RTI is still required
3. Declare any dividends — if drawing dividends, prepare the dividend voucher and board minute. Record in the company books. Move the cash from business to personal account
4. Pay regular subscriptions — software, insurance, professional memberships. Categorise in books as you go
5. Update tax pots — recalculate CT and VAT accrual based on the month's activity
6. Review month-end position — quick profit/loss check; runway; any concerning trends
7. Check upcoming deadlines — anything due in the next 30–45 days that needs prep work

The monthly close is where small errors get caught early. Skipping a few months turns a 1-hour review into a 5-hour catch-up.

Quarterly tasks

The VAT-driven cycle for most VAT-registered contractors.

1. Prepare VAT return — review the quarter's transactions, ensure all are correctly categorised (standard-rated, zero-rated, reverse-charge, exempt), check input VAT claims
2. Submit VAT return via MTD-compliant software — FreeAgent, Xero, QuickBooks all submit directly to HMRC. Due 1 calendar month + 7 days after the quarter end
3. Pay VAT to HMRC — same deadline. Direct debit is the cleanest method; some contractors prefer manual to retain control
4. Management accounts review — short summary of the quarter's revenue, costs, profit and tax position. Useful for sanity checks and tax planning conversations
5. Review dividend strategy — has the quarter's profit changed your year-end dividend plan? Particularly relevant near the higher-rate dividend threshold
6. Update tax forecasts — Corporation Tax accrual and personal Self Assessment estimates based on YTD numbers

For reverse-charge VAT (B2B services to / from overseas), see our reverse-charge VAT guide. For international VAT specifically, see VAT on international services.

Annual tasks

The big once-a-year compliance load. Spread across a few months depending on your year-end date.

1. Year-end accounts preparation

• Close the accounting period in your software
• Review all categorisations for the full year
• Reconcile balance sheet items (cash, debtors, creditors, fixed assets, retained earnings)
• Calculate capital allowances on fixed assets
• Determine final salary / dividend split if not already done
• Prepare statutory accounts (P&L + balance sheet + notes)

2. Companies House filings (due 9 months after year-end)

• File statutory accounts (abridged accounts permitted for small companies)
• Confirm director and registered office details

3. Corporation Tax (payment due 9 months + 1 day after year-end; return due 12 months)

• Calculate Corporation Tax liability based on adjusted profit
• Pay CT to HMRC by the 9-month-and-a-day deadline
• Prepare CT600 return and supplementary pages
• File CT600 to HMRC by 12-month deadline

4. Confirmation statement (due within 14 days of anniversary of incorporation)

• Confirm shareholder details, share capital, persons with significant control, SIC codes, registered office
• File with Companies House (£13 online, £40 paper)
• This is a different filing from accounts — easy to confuse them

5. Director Self Assessment (deadline 31 January following the tax year)

• Gather salary (P60), dividend records, any other personal income (property, investments, foreign income, capital gains)
• File Self Assessment online by 31 January
• Pay any balancing payment by same date
• Pay first payment on account (50% of estimated next year's liability) — also 31 January
• Pay second payment on account — 31 July

6. P11D (if applicable, due 6 July following the tax year)

• If any benefits in kind (company car, private medical insurance, season ticket loans), file P11D and pay Class 1A NIC
• For most contractor directors with no benefits, P11D is not required

7. Annual tax planning review

• Review the year's tax efficiency in hindsight — what worked, what didn't
• Plan next year's salary, dividend timing, pension contributions, expense capture
• Update budget and runway for the new accounting period

For a personalised view of deadlines based on your year-end date, see our contractor tax deadlines calendar.

One-off / event-driven tasks

Beyond the routine, certain events trigger their own accounting tasks:

New contract or engagement

• IR35 status review (especially if engaging with a new client where status isn't obvious)
• Contract review for unfavourable terms (payment terms, liability caps, termination)
• Update VAT-on-international-services position if the client is overseas

VAT threshold crossings

• Crossing £90k turnover on rolling 12-month basis triggers mandatory VAT registration
• Crossing back down below £88k allows deregistration (with a 12-month lag rule)
• See our VAT threshold guide

Hiring someone

• PAYE scheme registration with HMRC
• Employer's Liability insurance (legally required)
• Workplace pension auto-enrolment (depending on age and earnings)
• Updated payroll software / scheme

Major asset purchase

• Capital allowances treatment (Annual Investment Allowance, full expensing, etc.)
• If financed: HP / lease accounting treatment

Change of accounting reference date

• Can shorten or extend your accounting period at Companies House
• Knock-on effects on CT, VAT cycle, statutory accounts

Closing the company

• Voluntary strike-off (DS01) or Members' Voluntary Liquidation (MVL) — different tax treatments
• Final dividend distribution, capital distribution
• HMRC clearance, final CT600, deregister VAT, close PAYE scheme

Suggested calendar pattern

A workable pattern for a contractor running their own Ltd:

Every Friday afternoon

30–60 min: bank reconciliation, expense capture, invoice sending, chasing, tax pot top-ups.

First Monday of every month

1–2 hours: monthly payroll, dividend voucher (if applicable), monthly close, deadline review.

End of each VAT quarter

2–4 hours: VAT return prep + submission, quarterly management accounts review.

Two months before year-end

Plan ahead: meet with accountant (if you have one); decide on year-end dividend strategy; review pension contributions; capture any planned expenses before close.

Year-end + 1 to year-end + 4 months

Year-end accounts and CT600 preparation. Tasks complete by month 9 after year-end (payment deadline) and month 12 (filing deadline).

January

Self Assessment filing for the previous tax year. Balancing payment + first POA. Set up next year's tax pot.

July

Self Assessment second payment on account.

Add reminders in your calendar at least 2 weeks before each deadline, not on the deadline itself. The deadline is the latest point; payments and filings benefit from a few working days of buffer.

Tools that help

The recurring tools that make this checklist manageable:

• Cloud accounting software — FreeAgent (free with Mettle / NatWest), Xero, QuickBooks. See best accounting software comparison.
• Receipt scanning app — Dext or the mobile app of your accounting platform. See best receipt scanning app UK.
• Calendar reminders — Google Calendar, Outlook, Apple Calendar, with recurring entries for each deadline 14 days ahead
• Multi-pot business bank account — Mettle, Starling Business, Tide. Useful for separating CT, VAT and operating pots. See best business bank account UK.
• Deadline calendar tool — our contractor tax deadlines calendar generates a personalised 12-month view from your year-end date.

For a deeper take on which accounting platform fits your situation, see FreeAgent for contractors and accounting software for Ltd companies.

Common filing mistakes to avoid

The categories of mistakes that catch UK Ltd contractors most often:

Confusing accounts and confirmation statement

These are two separate filings on two separate dates. Many first-year directors think they've "filed everything" when they file accounts, then miss the confirmation statement. Each has its own penalty for lateness.

Paying Corporation Tax late (or estimating wrong)

The payment is due 9 months and 1 day after year-end — before the CT600 return is due. If you don't have a final number, pay an estimate by the deadline and adjust later. Late payment triggers interest from day one.

Declaring dividends without sufficient reserves

Dividends can only be paid from distributable reserves (essentially accumulated post-tax profits). Declaring more than available creates an unlawful dividend that HMRC can recharacterise as a director loan, attracting s455 tax. Always check reserves before declaring.

Missing dividend voucher / board minute

Each dividend should be supported by a voucher and a board minute approving the declaration. Without these, HMRC can challenge the declaration as not properly executed.

Mis-categorising VAT

Standard-rated vs zero-rated vs exempt vs reverse-charge — each is treated differently on the VAT return. Mistakes here can lead to under- or over-claimed input VAT, both of which HMRC will eventually catch.

Forgetting employee benefits (P11D)

Even small benefits in kind (subsidised travel, gym membership through the company, etc.) trigger P11D filings. Many contractors with no formal benefits assume P11D doesn't apply; usually correct, but worth confirming.

Treating personal expenses as business

The wholly-and-exclusively test for business expenses is stricter than many contractors realise. Putting personal subscriptions, family meals, or holiday travel through the company creates trouble at HMRC enquiry stage.

Missing the IR35 reassessment trigger

If your working practices change mid-engagement (more direction from the client, less substitution rights, more integration into client team), your IR35 status may need reassessing. Continuing to treat as outside when it's now inside creates back-tax exposure.

Closing the company informally

Companies don't "just close" — there's a formal process (DS01 strike-off or MVL liquidation). Stopping trading and ignoring the company creates problems: Companies House will eventually dissolve it, but unpaid tax remains your concern.

When something goes wrong

Practical response if you miss a deadline or make an error:

• Late filing — file as soon as possible. Penalties are time-based; minimising the lateness minimises the charge.
• Wrong filing — most filings can be amended (CT600, Self Assessment, VAT return). Amend, don't ignore. HMRC's "unprompted disclosure" generally attracts lower penalties than "prompted" (where HMRC found it first).
• HMRC enquiry letter — respond by the deadline given. Don't ignore. If you're not sure how to respond, engage an accountant for the enquiry even if you've been DIY otherwise — enquiry response is where accountant expertise is highest-value.
• Penalty notice — you can appeal if you have reasonable excuse. Don't pay first and appeal later; appeal first if you have grounds.
• Unable to pay tax — contact HMRC's Time to Pay arrangement before the deadline. They generally agree instalment plans; ignoring it makes things much worse.

The pattern across all of these: act early, communicate, don't ignore. HMRC and Companies House are far more reasonable with contractors who engage promptly than with those who go silent.

Editorial guidance only — not personalised tax or filing advice. Always verify deadlines with HMRC / Companies House and consult a qualified accountant for specific situations.