How Much Does an Accountant Cost for a Small Business in the UK?

What an accountant costs depends on what you need them to do. As a guide, our own fees start from £200 for a sole trader self assessment tax return, £400 for limited company accounts and Corporation Tax, and £50 a month for bookkeeping. Where you land above those starting points depends on how complex your business is and how much of the work you want handed over.

Our accountancy fees

These are our starting prices. Every client gets a fixed quote agreed before any work starts:

• Sole trader self assessment tax return: from £200.
• Limited company accounts and Corporation Tax: from £400.
• Monthly bookkeeping: from £50 a month.
• VAT returns: from £50 a quarter.
• Payroll: from £25 a month, plus £12.50 per employee.
• Management accounts: from £250 per set, produced monthly or quarterly.
• Virtual financial controller support: from £500 a month.

Fees for a sole trader and a limited company differ mainly because a limited company has statutory accounts to file at Companies House, a separate Corporation Tax return, and usually a director’s personal tax return on top.

What affects the price

The single biggest factor is scope. A firm that only prepares your annual accounts and tax return once a year will charge very differently from one providing ongoing monthly bookkeeping, payroll, VAT returns, and monthly management accounts throughout the year. Comparing a compliance-only quote against a full ongoing-service quote isn't really comparing like for like.

Beyond scope, the main drivers are:

• Transaction volume. More sales, more invoices, more bank transactions generally means more bookkeeping time, and fees usually scale with that.
• Business structure. A limited company typically involves more compliance work than a sole trader (statutory accounts, Corporation Tax, Companies House filings) so fees tend to be higher.
• Whether you have employees. Payroll adds a recurring monthly cost, generally priced per employee.
• VAT registration. If you're registered for VAT (the threshold is reviewed periodically, so check the current figure on gov.uk), you'll have quarterly returns to prepare and file, which adds to the workload.
• How organised your records are. Clean, up-to-date bookkeeping is quicker to work with than a shoebox of receipts handed over once a year, and messy records are one of the most common reasons a quote comes in higher than expected.

Common pricing models

Most firms now price on a fixed monthly fee for ongoing work, which makes budgeting easier and avoids the surprise of an hourly bill that runs over. Compliance-only work (a single annual accounts and tax return job) is sometimes priced as a one-off fee instead. Some firms still bill hourly, particularly for ad hoc advisory work outside a fixed scope.

When you're comparing quotes, always ask what happens outside the agreed scope. A fixed fee that excludes anything beyond basic filing can end up costing more overall once extras are added.

What's usually included, and what often isn't

Typical inclusions in an ongoing package are bookkeeping, VAT returns, payroll, management accounts, and year-end annual accounts and Corporation Tax. Things that are commonly quoted separately include one-off advisory work, company secretarial changes, complex tax queries, and support with things like grant applications or due diligence for a sale.

Ask for a written breakdown before you sign anything, so you know exactly what's covered and what would trigger an additional charge.

Is a cheaper accountant actually cheaper?

A low headline fee that only covers minimum compliance can end up costing more in the long run if it means you're making decisions without decent visibility into cash flow, margins, or tax planning. The value of a good management accountant isn't just in the filing; it's in the decisions it helps you get right the rest of the year.

This is general guidance rather than a quote for your specific business; costs vary case by case. If you'd like a straightforward, fixed-fee quote based on what your business actually needs, get in touch with us or book a free 30-minute call.