# How much does an accountant cost for a limited company?

Pick My Accountant (https://pickmyaccountant.co.uk/answers/how-much-does-an-accountant-cost-for-a-limited-company/): How much does an accountant cost for a limited company? — Quick answer. On Pick My Accountant's UK benchmarks, a micro limited company typically pays £83–£227 per month for an accountant covering annual accounts, the corporation tax return and confirmation statement. Annual-only compliance runs £960–£1,800; VAT returns, payroll and the directors' own tax returns are usually priced as add-ons.

## Key facts

- Monthly limited company packages: £83–£227/month on Pick My Accountant benchmarks
- Annual-only micro company compliance: £960–£1,800/year
- With quarterly VAT returns: £1,440–£2,880/year
- With payroll for 1–5 staff: £2,160–£4,320/year
- Director self assessment is often extra — around £150–£350 per return

## What a limited company package includes

A standard package covers statutory year-end accounts filed at Companies House, the corporation tax return (CT600) to HMRC, and the annual confirmation statement. Most firms include software and routine advice. Director self assessment returns, VAT returns and payroll are commonly charged separately, so compare like-for-like scopes rather than headline fees.

## What moves the price

Turnover and transaction volume are the biggest drivers, followed by VAT registration and employee count. A dormant company sits at the very bottom of the range; a VAT-registered company running payroll for five staff sits near the top. Multiple directors, rental income or R&D claims add further work and cost.

## Monthly package or annual-only?

Annual-only engagements (£960–£1,800 for a micro company) keep costs down if you keep clean records yourself and only need the year-end filings. Monthly packages cost more but spread cash flow, include bookkeeping or reviews, and mean someone is watching deadlines through the year. Fast-growing companies usually outgrow annual-only quickly.

## Is it worth it?

Limited company compliance is genuinely more demanding than sole trader work — statutory accounts formats, corporation tax computations and Companies House deadlines leave little room for DIY errors, and late filing penalties start at £100 with HMRC and £150 at Companies House. Fees are a deductible business expense, which softens the real cost.

## FAQs

**Q: Is my director's self assessment included?**
A: Often not. Many firms charge it separately — our benchmarks put an additional director or landlord return at roughly £150–£350. Ask for it to be itemised in the quote so you can compare packages properly.

**Q: What does a dormant company accountant cost?**
A: Dormant companies with no activity sit at the bottom of the range. Some firms offer a small annual fee for dormant accounts and the confirmation statement — compare quotes, as pricing varies widely.

**Q: Are limited company accountancy fees tax-deductible?**
A: Yes — accountancy fees are a deductible business expense for corporation tax purposes, and if your company is VAT-registered you can normally reclaim the VAT on the fees as well.

Updated: 2026-07-17

Source: https://pickmyaccountant.co.uk/answers/how-much-does-an-accountant-cost-for-a-limited-company/