Costs & fees
How much does an accountant cost in the UK?
By Pick My Accountant Editorial · Updated 8 July 2026
What drives the price
Four things move an accountant's quote more than anything else: your business structure (limited companies cost more than sole traders because of Companies House accounts and corporation tax returns), turnover and transaction volume, whether you are VAT-registered, and whether you run payroll. A dormant company with no activity sits at the bottom of the range; a VAT-registered company with five employees sits near the top.
Fixed monthly fee vs hourly billing
Most firms serving small businesses now sell fixed monthly packages covering an agreed scope — accounts, tax returns, and software. Hourly billing (£25–£150+ per hour depending on seniority) still appears for one-off advisory work. For predictable compliance work, fixed fees are almost always better value and easier to budget.
How to pay less without cutting corners
Keep tidy digital records in software your accountant already supports, compare at least three quotes before committing, and don't pay for services you don't need — payroll with no employees is the classic example. Online-only firms often undercut high-street practices by 10–20% for the same qualified work.
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.