UK fee benchmark
How much does a VAT return cost?
Typical add-on cost
£20–£45/mo
Quarterly MTD VAT returns
What you should expect to pay
| Service | Typical fee | Notes |
|---|---|---|
| VAT returns as a package add-on | £20–£45/mo | Most common arrangement |
| VAT returns only, standalone | £200–£500/yr | Assumes you maintain the books |
| Limited company with VAT, all-in annually | £1,440–£2,880/yr | Accounts, corporation tax and VAT |
| VAT registration setup | £75–£250 one-off | Common market range for registration and scheme advice |
Editorial benchmarks from Pick My Accountant's UK market research — indicative ranges, not quotes.How we set them.
Scheme choice changes both cost and cash flow
Standard accounting, cash accounting, annual accounting, and the flat rate scheme each suit different businesses. Cash accounting helps when customers pay slowly; the flat rate scheme can suit low-cost service businesses but has traps for "limited cost traders". Getting the scheme right at registration is worth more than shaving £5 a month off the filing fee.
Sector complexity is the real cost driver
Standard-rated services are simple. Mixed or partially exempt supplies — hospitality with hot and cold food, construction under the domestic reverse charge, e-commerce selling across borders, property with option-to-tax — take substantially longer and cost more. Quote comparisons only make sense between firms that understand your sector.
Penalties under the points system
Late VAT returns accrue penalty points, with a £200 penalty once the threshold is reached and a further £200 for each subsequent late return. Late payment adds separate charges plus interest. Consistent on-time filing is the cheapest thing you can do with VAT.
Frequently asked questions
How much does an accountant charge for a VAT return?
VAT returns typically cost £20–£45 a month as an add-on to an accountancy package, or £200–£500 a year standalone if you keep your own books.
When do I have to register for VAT?
Registration is compulsory once taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it in the next 30 days alone. Voluntary registration below that can pay if your customers are VAT-registered businesses.
Do I need software to file VAT returns?
Yes. All VAT-registered businesses must keep digital records and file through Making Tax Digital-compatible software. Most accountancy packages include the software licence — check whether yours does.
Figures are indicative editorial benchmarks for UK small businesses, not quotes or financial advice. Actual fees depend on turnover, transaction volume, record quality, and scope — always confirm directly with the firm. Last reviewed: 2026-07-17.