Accountant for Small Business UK — Compare Firms

Do small businesses need an accountant?

You are not legally required to hire one, but most small limited companies should, and most sole traders heading into MTD should. An accountant handles self assessment, VAT, payroll, year-end accounts and digital record rules. Skip a monthly retainer if your only job is one simple return you will file on time yourself.

Owner-managed limited companies benefit most — corporation tax, Companies House filings, and director self assessment stack quickly. Sole traders under the MTD income thresholds with tidy records can still DIY, but the 6 April 2026 MTD for Income Tax start for qualifying income over £50,000 is the point where “I’ll do it in January” stops working. An accountant often pays for itself through allowable expenses and avoided penalties; that is a pattern, not a guarantee for your facts.

What does a small business accountant actually do?

Typical work is bookkeeping, VAT returns, payroll (RTI), annual accounts, corporation tax, self assessment, software setup, and MTD filings. Packages are usually tied to structure and turnover, not to a vague “business support” promise. Advisory work is often extra.

A basic sole trader plan covers self assessment and light bookkeeping. A limited company plan adds statutory accounts and CT600. Premium tiers add management accounts and a named manager. If a brochure lists “tax planning” with no hours, ask whether that is a meeting or a slogan. Confirmation statements, P11Ds and VAT are the items that quietly fall out of cheap scopes.

How much does a small business accountant cost?

UK small business accountants typically charge £39–£89 per month for sole traders and £83–£227 per month for limited companies on our July 2026 editorial benchmarks. VAT returns add about £20–£45; payroll about £15–£35 plus per employee. Compare three quotes on the same scope.

Micro businesses with turnover under the VAT threshold and no employees sit at the low end. Growing SMEs with VAT, payroll and several directors pay more. London often sits 10–20% above regional cities. Use the fee estimator for a range, then the directory for firms that have actually published a number. We do not invent a cell when they have not.

Sole trader vs limited company — which accountant?

Match the accountant to the structure you have, not the one you might have next year. Sole traders need self assessment and MTD for Income Tax. Limited companies need accounts, CT600 and confirmation statements. A firm that only does one of those is not a bargain for the other.

Incorporation is a separate decision — do not buy a company package “just in case”. Contractors inside or outside IR35 need that specialist, not a generic SME accountant who has never seen a PSC. Industry pages on this site (landlords, CIS, healthcare) exist because a generalist is the wrong default for those rules.

How do you choose — and who should skip a generalist?

Check verifiable ICAEW, ACCA, AAT or ICAS membership, MTD-ready software, written fixed fees, and someone who has filed for your structure before. Skip a generalist if you need CIS monthly returns, IR35 status work, a statutory audit, or a live HMRC enquiry — hire the specialist job.

Ask who handles the file day to day, typical response times, and whether they will say no to work they cannot do. Face-to-face still matters for some retailers and landlords; online is enough for most cloud-native sole traders. Read the engagement letter. Compare on Pick My Accountant, then verify the badge on the professional body’s own register.

When should a small business switch accountants?

Switch when the firm misses deadlines, ignores MTD, will not put fees in writing, or no longer fits your structure. Avoid switching in the middle of year-end unless the current firm has already failed. A handover of two to four weeks is normal.

Professional clearance is the polite, standard route — your new accountant writes to the old one. You mainly grant software access and sign a new letter. If you are switching because of a dispute, put the facts in writing. See the dedicated switching answer for the checklist.

How does Making Tax Digital change the job?

MTD for VAT is already live for VAT-registered businesses. MTD for Income Tax is mandatory for sole traders and landlords over £50,000 qualifying income from 6 April 2026, then lower thresholds in 2027 and 2028. HMRC has said it does not intend to introduce MTD for Corporation Tax. Your accountant should already be on compatible software.

If a prospective firm still wants paper books for VAT, that is a reason to leave. Ask which software (Xero, QuickBooks, FreeAgent, Sage) and whether quarterly updates are in the monthly fee. Thresholds and dates are in our regulatory module, last checked 17 July 2026 against GOV.UK — confirm there before you act.

Frequently asked questions

Sources

• GOV.UK — Making Tax Digital for Income Tax · checked 2026-07-17
• GOV.UK — VAT registration · checked 2026-07-17
• Pick My Accountant methodology · checked 2026-08-13

Related pages

• Limited company accountants
• Sole trader accountants
• Accountant costs guide
• Accountant near me
• Startup accountants
• MTD accountants
• Compare accountants