how much should an accountant cost in uk
What you’ll really pay, what you get for your money, and whether it’s worth hiring one for your business
If you ask around, you’ll quickly notice there isn’t a fixed price for accounting.
One sole trader might be paying around £150 for their Self Assessment, while a limited company could be spending a couple of thousand each month for ongoing support. In between, there’s a wide mix — and for many business owners, it’s not always clear whether what they’re paying actually makes sense.
We speak to people all the time who aren’t sure if they’re getting good value, or even what’s included in their fees.
This guide takes a closer look at what accountants typically charge in the UK, what those fees usually cover, and whether it’s worth having an accountant based on your situation.
how much does a small business accountant cost in uk
The short answer: anywhere from £50 to £500+ a month, depending on your business structure, turnover, and how much you want them to do. But let’s get more specific.
Pricing ranges by business type
| Business Type | Typical Annual Cost | What’s Usually Included |
|---|---|---|
| Sole trader (Self Assessment only) | £150 – £400 | Annual tax return, basic advice. Often one-off fee. |
For a small limited company with fairly straightforward finances, you’ll often see fees somewhere in the region of £600 to £1,500 a year. That usually covers the basics — things like your annual accounts, corporation tax return, confirmation statement, and often the director’s personal tax return as well.
As businesses grow, the fees tend to go up as well. You’ll usually see this once things like VAT registration come in, or when there are employees to pay and more money going through the business.
In those situations, many businesses end up paying somewhere between £1,500 and £3,500 a year. It’s not just a higher price for the sake of it — there’s simply more going on. VAT returns need dealing with, payroll has to be run, and there’s often a bit more back-and-forth during the year rather than everything being left until the year-end.
For larger or more complex businesses, the numbers can vary quite a bit. If you need regular management accounts, tax planning, or things like R&D claims or group structures, fees can easily go beyond £3,500 and into the higher range. At that point, you’re not just paying for compliance — you’re getting ongoing financial insight and strategic support as well.
Fixed fees vs monthly fees – what’s the difference?
Accountants generally price work in two ways:
- Fixed annual fee (often paid monthly): You agree a set price for the year, split into 12 equal monthly payments. Most common for limited companies. You know exactly what you’re paying.
- Hourly or ad-hoc fees: You pay for time spent – typically £75-£200 per hour depending on the firm and seniority. Common for one-off work like tax returns or advice.
For ongoing work, most businesses find a fixed monthly fee works better. It’s easier to budget, and you’re not worrying about being charged every time you pick up the phone or send an email.
Hourly rates can still make sense for one-off queries or a simple tax return. But if you know you’ll need regular support, it’s usually worth agreeing a fixed fee upfront.
Here’s a typical example. We might see a small limited company turning over around £150k, VAT registered, with a single director. In that kind of setup, a monthly fee often sits somewhere between £150 and £250. Over the year, that works out at roughly £1,800 to £3,000.
That would normally cover the main essentials — annual accounts, corporation tax, VAT returns, payroll, and the director’s personal tax return. If everything was billed hourly instead, the overall cost would often end up higher.
accountant for self employed uk cost
Self-employed – sole traders and freelancers – generally pay less than limited companies because the reporting requirements are simpler. But there’s still a wide range.
Freelancers / sole traders – typical cost
| Service Level | Typical Cost | What You Get |
|---|---|---|
| Basic Self Assessment only | £150 – £300 | They prepare and file your annual tax return. You keep your own records. |
For someone who needs help with their Self Assessment along with a bit of bookkeeping support, fees are often somewhere in the region of £300 to £800 a year. That usually covers keeping records in order, checking expenses, filing the tax return, and in some cases a few check-ins during the year.
If you’re looking for something more hands-on, such as ongoing advice or help with VAT, the cost tends to be higher. In those cases, it’s quite common to see fees between £800 and £1,500 annually. That typically includes VAT returns (if you’re registered), regular support, some level of tax planning, and a review at year-end.
Startup vs established business – does it change the cost?
Yes, but not always in the way you think. Startups often pay slightly more in the first year because there’s more setup work – choosing the right structure, registering for taxes, setting up software. After that, costs tend to level out. Some accountants offer “startup packages” at a discount to win your business, so worth shopping around.
Some firms quote a very low fee for year one, then double it in year two assuming you won’t want the hassle of switching. Ask upfront what the renewal fee will be.
A freelance graphic designer earning £40k, simple expenses, no VAT – typical cost: £250-£400 for Self Assessment. A self-employed builder earning £80k, VAT registered, with CIS deductions – typical cost: £600-£1,200 because there’s more complexity.
what does an accountant do for a small business in uk
It’s worth understanding exactly what you’re paying for, because not all accountants offer the same services.
Bookkeeping – do they do it or just check it?
Some accountants include bookkeeping in their fee. Others expect you to keep your own records (using software like Xero or QuickBooks) and they just review and file year-end accounts. If you hate bookkeeping, pay extra for them to do it. If you’re comfortable with it, you can save money by handling it yourself.
Tax returns – the core service
All accountants will prepare and file your tax returns – whether Self Assessment for sole traders or corporation tax for limited companies. This is the minimum you should expect. A good accountant will also check you’re claiming everything you’re entitled to.
Advice – this is where the value is
The real benefit of an accountant isn’t form-filling – it’s advice. Tax planning, cash flow forecasting, deciding between sole trader and limited company, claiming R&D relief, structuring your business to minimise tax legally. If your accountant just files your return and never offers advice, you’re probably overpaying for what you get.
- “Have you considered claiming the trading allowance instead of actual expenses?”
- “If you take a dividend instead of a bonus, you’ll save £X in NI.”
- “You’re close to the VAT threshold – here’s what to do.”
- “You could claim the Annual Investment Allowance on that equipment.”
do i need an accountant for my business in uk
This is the million-pound question – or maybe the £500 question. The honest answer: it depends on your business and your confidence with numbers.
Scenarios where you can probably DIY
- You’re a sole trader with simple income and expenses (e.g., freelance writer, delivery driver).
- Your turnover is well under £50,000 and you’re not VAT registered.
- You’re comfortable using HMRC’s online Self Assessment or software like TaxScouts.
- You have time to learn the basics and keep good records.
Scenarios where you really should hire an accountant
- You’re a limited company – the filing requirements are stricter and mistakes cost more.
- You’re VAT registered or close to the threshold.
- You have employees – payroll and RTI submissions are easy to mess up.
- Your business has complex expenses (e.g., working from home, foreign travel, multiple income streams).
- You simply don’t have time or hate dealing with numbers.
DIY vs accountant – the real trade-off
| Factor | DIY | Accountant |
|---|---|---|
| Cost | £0 – £100 (software) | £150 – £3,000+ |
| Time commitment | 10-30 hours per year | 1-5 hours per year (reviewing) |
| Risk of mistakes | Moderate to high | Low (if they’re good) |
| Tax savings potential | Basic claims only | Often finds savings that exceed their fee |
| Peace of mind | Variable – some worry constantly | High – you know it’s handled |
Simple test: If you earn more than £30k self-employed, or run a limited company, or are VAT registered – hire an accountant. The cost is usually less than the tax savings and time you’ll waste. If you’re a very small side hustle earning £5k-£10k, DIY is fine.
benefits of hiring an accountant for small business in uk
Beyond just filing your tax return, a good accountant can save you money and stress in ways that aren’t always obvious.
Tax savings – often more than their fee
This is the big one. A decent accountant will spot deductions you’d miss – like the working from home allowance, capital allowances on equipment, mileage vs fuel costs, use of home as office, and structuring payments to minimise NI and income tax. I’ve seen accountants save clients £2,000-£5,000 a year, on a fee of £800. That’s a no-brainer.
A self-employed electrician had been claiming a flat rate for van expenses. His accountant reviewed his mileage log and realised he could claim actual costs – including fuel, insurance, maintenance, and a portion of purchase price via capital allowances. He saved over £1,200 in tax that year. Accountant’s fee: £350.
Time saving – your time has value
If you spend 30 hours a year on your tax and bookkeeping, and your time is worth £50 an hour, that’s £1,500 of your time. An accountant might charge £800 and save you 25 of those hours. You’re net £700 better off and have less stress. Most small business owners undervalue their own time.
Compliance – avoiding penalties
HMRC penalties for late filing start at £100, and interest on late payments adds up. If you miss deadlines because you’re busy or confused, those penalties can easily exceed an accountant’s fee. A good accountant keeps you compliant automatically – they file on time, pay on time, and handle any HMRC queries.
I’ve seen sole traders get penalty points under the new MTD regime because they didn’t understand quarterly updates. Limited companies have paid thousands in fines for late corporation tax returns. An accountant costs far less than HMRC penalties.
Not Sure If You Need an Accountant – or How Much You Should Pay?
We offer fixed-fee accounting packages for sole traders, freelancers, and limited companies across the UK. Whether you just need a Self Assessment filed or full-service monthly support, we’ll give you a clear price upfront – no surprises, no hourly billing. Book a free consultation and we’ll tell you honestly what you need (and what you don’t).
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