# How much does an accountant cost in the UK?

Pick My Accountant (https://pickmyaccountant.co.uk/answers/how-much-does-an-accountant-cost/): How much does an accountant cost in the UK? — Quick answer. Most UK small businesses pay a fixed monthly fee: sole traders typically £39–£89 per month and micro limited companies £83–£227 per month on our benchmarks. One-off self assessment returns cost roughly £150–£600. VAT returns and payroll are usually charged as add-ons on top of the core package.

## Key facts

- Sole trader packages: £39–£89/month on our benchmarks
- Limited company packages: £83–£227/month depending on turnover and services
- One-off self assessment: roughly £150–£600 depending on complexity
- VAT returns add about £20–£45/month; payroll £15–£35/month plus per-employee fees
- London and the South East typically charge 10–20% more than regional cities

## What drives the price of an accountant?

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?

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?

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.

## FAQs

**Q: Are cheap accountants worth it?**
A: 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.

**Q: Do accountants charge VAT on their fees?**
A: 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.

**Q: Is an accountant tax-deductible?**
A: Yes — accountancy fees for your business are an allowable business expense for both sole traders and limited companies, which reduces the effective cost.

Updated: 2026-07-08

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