Costs & fees
How much does an accountant cost in the UK?
By Kaiser Khan · Updated 8 July 2026
What drives the price of an accountant?
Four things move the quote more than anything else: your structure (limited companies cost more than sole traders), turnover and transaction volume, whether you are VAT-registered, and whether you run payroll. A dormant company sits at the bottom; a VAT-registered company with five employees sits near the top.
Industry complexity (CIS, IR35, R&D) is the fifth lever. London and the South East often add 10–20%. Online firms compress that gap. These are editorial patterns from published fees, not a quote for your file — confirm with the firm. See the full cost guide for tables.
Should you pick a fixed monthly fee or hourly billing?
Pick a fixed monthly package for predictable compliance — accounts, returns, payroll. Hourly billing (£25–£150+ by seniority) is for one-off advice. For year-round filings, fixed fees are almost always easier to budget.
If a firm will only quote hourly for routine bookkeeping, get a second quote. If “unlimited support” excludes everything after onboarding, that is hourly in disguise. Ask what is in the engagement letter.
How do you pay less without cutting corners?
Keep tidy digital records in software your accountant already supports, compare at least three quotes on the same scope, and do not pay for payroll if you have no employees. Online-only firms often undercut high-street practices by 10–20% for the same qualified work.
Do not buy cheap by skipping verifiable ICAEW, ACCA, AAT or ICAS membership. One missed deadline costs more than the saving. Use the fee estimator, then compare firms that have actually published a number.
People also ask
Are cheap accountants worth it?
A low fee is fine if the firm holds recognised qualifications (ICAEW, ACCA, AAT) and the package genuinely covers your filings. Be wary of prices that look too low to include year-end accounts or a proper tax review — missed deadlines cost more in penalties than the saving.
Do accountants charge VAT on their fees?
Most accountancy firms are VAT-registered, so add 20% VAT to quoted fees unless stated otherwise. If your business is VAT-registered you can usually reclaim it.
Is an accountant tax-deductible?
Yes — accountancy fees for your business are an allowable business expense for both sole traders and limited companies, which reduces the effective cost.
This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.