Skip to content

How Much Does an Accountant Cost in the UK?

UK accountant fees explained — sole traders, limited companies, VAT, payroll, and R&D. Updated pricing benchmarks for 2026.

By Pick My Accountant Editorial · Updated 29 June 2026

Fixed-fee accountancy
A monthly or annual package covering agreed services at a set price — common for sole traders and owner-managed limited companies. Contrasts with hourly billing where costs vary each month.
Self Assessment
HMRC's system for reporting personal income and paying tax. Sole traders, company directors, and others with untaxed income must file a Self Assessment tax return by 31 January each year.

How much does an accountant cost in the UK?

Most UK small businesses pay £39–£189 per month for accountant services on fixed-fee packages. Sole traders typically pay £39–£89 monthly; limited companies pay £83–£227. Annual self assessment-only packages start from £150–£600.

Accountant fees in the UK vary by business structure, turnover, and services required. This guide breaks down typical costs for sole traders, limited companies, VAT, payroll, and specialist services — based on Pick My Accountant's curated market data from 22+ vetted firms.

How much does a sole trader accountant cost?

Sole trader accountants charge £39–£89 per month for ongoing bookkeeping and tax support, or £300–£600 per year for basic Self Assessment and light record-keeping. MTD for Income Tax from April 2026 may add £10–£20 monthly for software.

Fees increase with turnover, number of income sources, and whether you need VAT returns or payroll. Freelancers with a single client and simple records sit at the lower end; sole traders with multiple revenue streams or rental income pay more.

How much does a limited company accountant cost?

Limited company accountants charge £83–£227 per month for micro companies, covering annual accounts, corporation tax (CT600), and confirmation statement. VAT returns add £20–£45 monthly; payroll adds £15–£35 base plus per-employee fees.

Annual-only packages for dormant or very simple companies may cost £960–£1,440 per year. Growing companies with management accounts, R&D claims, or multiple directors should expect fees at the higher end of the range.

How to reduce your accountant fees

Use cloud accounting software your accountant recommends, keep records tidy, and choose a package matching your actual needs. Comparing at least three firms before committing typically saves 15–30% on annual fees.

Do not pay for payroll if you have no employees. Ask about fixed monthly fees versus hourly billing for ad-hoc advice. Many firms offer discounts for paying annually or referring other businesses.

UK accountant fee benchmarks

ServiceLowHighPeriodNotes
Sole trader — basic compliance£300£600yearAnnual self assessment, basic bookkeeping
Sole trader — with bookkeeping£600£1,200yearMonthly bookkeeping + annual accounts
Limited company — micro entity£960£1,800yearAnnual accounts, confirmation statement, CT600
Limited company — with VAT£1,440£2,880yearQuarterly VAT returns included
Limited company — with payroll (1–5 staff)£2,160£4,320yearRTI payroll, pensions auto-enrolment
VAT returns only (quarterly)£200£500yearAssumes books maintained by client
Self assessment (additional)£150£350yearDirector or landlord return
R&D tax credit claim£1,500£5,000claimSuccess fee models also common

Monthly package pricing

Sole trader

£39 – £89/mo

Limited company

£83 – £227/mo

Frequently asked questions

How much does an accountant cost for self assessment?

Self assessment-only packages range from £150–£400 per year for simple returns, or £39–£59 per month if bundled with bookkeeping. Complex returns with rental income, dividends, or foreign income cost more.

Is an accountant worth the cost for a small business?

For most small businesses, yes. An accountant typically saves more in tax, allowable expenses, and avoided penalties than they charge. HMRC late filing penalties start at £100 for self assessment.

Do accountant fees include VAT return filing?

Usually not in the base package. VAT returns typically add £20–£45 per month as an add-on. Confirm what is included before signing — some all-inclusive packages bundle VAT for a higher monthly fee.

Related pages

Ready to compare real firms?

See actual fees from 22+ vetted UK accountants matched to your business.

Compare accountants free