# How Much Does an Accountant Cost in the UK?

Pick My Accountant (https://pickmyaccountant.co.uk/guides/how-much-does-an-accountant-cost/): How Much Does an Accountant Cost in the UK? — Summary. UK accountant fees explained — sole traders, limited companies, VAT, payroll, and R&D. Editorial benchmarks, not quotes, with who should skip a paid firm. Most UK small businesses pay a fixed monthly fee: sole traders typically £39–£89 and micro limited companies £83–£227 on Pick My Accountant’s editorial benchmarks (reviewed 17 July 2026). VAT and payroll are usually add-ons. Skip a paid accountant if your records are a single simple self assessment and you will file on time yourself.

## Should you pay an accountant in 2026, or skip it?

Pay an accountant if you are a limited company, VAT-registered, on payroll, or heading into MTD for Income Tax. Skip a monthly package if you have one simple self assessment, tidy records, and will file on time yourself — software plus GOV.UK is enough for that slice. The rest of this guide is the fee checklist, not a sales pitch.

The honest split is compliance versus advice. Compliance (accounts, CT600, self assessment, VAT, payroll) is what most small firms buy on a fixed monthly fee. Advice (structure, IR35 status, R&D narrative, HMRC disputes) is usually extra. If you only need the first, compare packages. If you only need the second, a cheap monthly plan will not help you — hire for that job, then stop.

## How much does an accountant cost in the UK?

Most UK small businesses pay £39–£189 per month on fixed-fee packages. Sole traders typically pay £39–£89 monthly; limited companies pay £83–£227. Annual self assessment-only work starts around £150–£600. London and the South East often sit 10–20% above regional cities.

These are Pick My Accountant editorial benchmarks, reviewed 17 July 2026, built from published starting prices on listed firms — not a census of every UK practice and not a quote for your turnover. Your price moves with structure, transaction volume, VAT, payroll headcount, and whether the firm is local or online. Always confirm the current figure with the firm before you engage. Compare live packages on the comparison wizard rather than treating this page as a price list.

## How much does a sole trader accountant cost?

Sole trader accountants charge £39–£89 per month for ongoing bookkeeping and tax support, or about £300–£600 a year for basic self assessment and light records. MTD for Income Tax from April 2026 may add £10–£20 a month for software if it is not already in the package.

The low end is a freelancer with one income stream and cloud software already in place. The high end is multiple trades, rental income, or a bookkeeper doing the books for you. You are not legally required to hire anyone — but late-filing penalties start at £100, and MTD for Income Tax is mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000 (then £30,000 from April 2027 and £20,000 from April 2028). If you will not keep digital records yourself, the monthly fee is usually cheaper than the penalty path.

## 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 the confirmation statement. VAT returns typically add £20–£45 monthly; payroll adds £15–£35 base plus a per-employee fee.

Dormant or very simple companies sometimes sit on an annual-only package around £960–£1,440 a year. Growing companies that want management accounts, R&D claims, or several directors sit at the top of the range or above it. Corporation tax payment is due nine months and one day after the accounting period ends; the CT600 is due within 12 months. An accountant who misses those dates costs more than a dearer firm that files on time.

## What do VAT, payroll and MTD add-ons actually cost?

VAT returns typically add £20–£45 a month. Payroll is about £15–£35 a month plus roughly £5 per employee. MTD-ready software, when charged separately, is about £10–£20 a month. Headline “from £39” packages often exclude all three — read the engagement letter.

This is the usual place cheap quotes fall apart. A sole trader who is not VAT-registered and has no staff should not pay for payroll. A VAT-registered limited company with three employees should treat add-ons as part of the real monthly number, not a surprise. Ask for the figure including VAT on the accountant’s own fees (most firms add 20%) and whether MTD filing is in the base package.

## Fixed monthly fee vs hourly billing — which should you pick?

Pick a fixed monthly fee for predictable compliance (accounts, returns, payroll). Pick hourly (£25–£150+ depending on seniority) for one-off advice. For year-round filings, fixed fees are almost always easier to budget and harder for the firm to pad.

Hourly billing still has a place: a one-off R&D claim, a share-sale, a discovery assessment. It is a poor default for bookkeeping. If a firm will only quote hourly for routine work, get a second quote. If a fixed package excludes every email after 4pm, that is hourly in disguise — ask what “unlimited support” actually means.

## How do UK accountant fees compare by city?

London and the South East typically charge 10–20% more than regional cities for the same package. Online firms compress that gap because they do not carry a high-street rent. Compare a local quote against an online quote on the same scope before you assume “near me” is the market rate.

City pages on this site apply a published multiplier to the same UK base ranges — they are not a separate survey. Central London practices often sit above the already-higher London band. A Leeds or Glasgow online firm serving a London client is a valid comparison if you do not need site visits.

## Are accountant fees tax deductible?

Yes — accountancy fees for your trade or company are an allowable business expense for sole traders and limited companies, which reduces the effective cost. Personal tax work that is not for the business is usually not deductible. Confirm the split with your firm.

If you are VAT-registered you can usually reclaim the VAT on the accountant’s invoice as well. That is why comparing VAT-inclusive headlines against VAT-exclusive ones misleads. See the dedicated answer on deductible fees if that is the only question you have.

## How do you reduce the fee without cutting corners?

Keep digital records in software the accountant already supports, drop services you do not use (payroll with no staff is the classic), and compare at least three written quotes on the same scope. That process typically saves more than haggling a single firm down.

Do not buy “cheap” by hiring someone with no verifiable ICAEW, ACCA, AAT or ICAS membership. The saving is smaller than one missed deadline. Online firms often undercut high-street practices by 10–20% for the same qualified work because of overhead, not because they skip the filing. Ask who actually touches your file.

## Who should skip this guide?

Skip this page if you need a live quote, a statutory audit, or a fee for a specialist claim (R&D success fees are often £1,500–£5,000 per claim or a percentage). Those numbers are not in the monthly table on purpose — we do not pretend they are.

Use the fee estimator for a range, then the comparison wizard for firms that publish prices. If a listing has no fee, we show that honestly rather than inventing a cell in this table.

## Definitions

**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, many company directors, and others with untaxed income must file online by the deadline in our regulatory module (currently 31 January 2027 for the 2025/26 year).

## FAQs

**Q: How much does an accountant cost for self assessment?**
A: Self assessment-only packages range from about £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. Confirm the current quote with the firm.

**Q: Is an accountant worth the cost for a small business?**
A: For most limited companies and for sole traders heading into MTD, yes — the fee is usually smaller than the tax, time, or penalty it avoids. If your only filing is a simple self assessment and you will do it on time, you can skip a monthly package.

**Q: Do accountant fees include VAT return filing?**
A: Usually not in the cheapest base package. VAT returns typically add £20–£45 per month. Confirm what is included before signing — some all-inclusive packages bundle VAT for a higher monthly fee.

**Q: Why do London accountants charge more?**
A: Office costs and local wage bands, not a different tax system. Online firms serving London clients often price closer to the UK base range. Compare both.

Published: 2026-01-15 · Updated: 2026-08-13

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