How Much Does an Accountant Cost for a Small Business in the UK?

If you're running a small business in the UK, you've probably wondered what you should actually be paying for an accountant. It's a fair question — and frustratingly, the answer you'll usually get is "it depends."

That's not particularly helpful when you're trying to budget. So in this guide, we'll break down what accountants actually charge, what affects the price, and how to make sure you're getting value for money.

Typical Accountant Fees in the UK (2025)

Let's start with the numbers. Here's what you can expect to pay based on your business type:

These are broad ranges because pricing varies significantly based on your turnover, transaction volume, industry, and the complexity of your affairs.

What Affects the Price?

Several factors determine what you'll pay:

1. Business Structure

Limited companies cost more than sole traders. There's more compliance involved — annual accounts filed with Companies House, corporation tax returns (CT600), confirmation statements, and often personal self-assessments for directors too.

2. Turnover and Transaction Volume

A business doing £50k turnover with 20 transactions a month is simpler than one doing £500k with hundreds of invoices. More transactions mean more bookkeeping time.

3. Industry Complexity

Some industries have specific accounting requirements. Construction businesses deal with CIS. International businesses have additional compliance. R&D-heavy companies need specialist knowledge for tax credits.

4. Service Level

This is the big one. There's a huge difference between:

• Compliance-only: Someone who files your returns and nothing more
• Proactive accounting: Regular management accounts, cash flow forecasts, tax planning advice
• Full finance function: Acting as your virtual finance director, involved in business decisions

Pricing Models: Fixed Fee vs Hourly

Accountants typically charge in one of two ways:

Fixed Monthly Fee

You pay a set amount each month for an agreed scope of work. This is increasingly common and generally better for budgeting. You know exactly what you're paying, and there are no surprises.

The downside? If you need something outside the agreed scope, you'll pay extra. Make sure you understand exactly what's included.

Hourly Rate

Traditional firms often charge by the hour. Rates typically range from £75/hour for junior staff to £300+/hour for partners.

The problem with hourly billing is unpredictability. You might hesitate to ask questions because each email could cost you £50. That's not a healthy accountant-client relationship.

Per-Job Pricing

Some accountants quote per job — for example, £350 for your annual accounts, £150 for self-assessment. This works for simple, predictable work but can add up if you need ongoing support.

What Should Be Included?

When comparing quotes, make sure you're comparing like with like. A good monthly accounting package for a limited company should include:

• Annual statutory accounts preparation
• Corporation tax return (CT600)
• Companies House filing (confirmation statement)
• Director's self-assessment (at least one)
• Bookkeeping or bookkeeping review
• VAT returns (if VAT registered)
• Payroll (if you have employees)
• Reasonable ad-hoc advice and queries

Watch out for accountants who quote a low monthly fee but then charge extra for "additional work" like answering questions or providing advice. You'll end up paying more than expected.

Cheap vs Expensive: What's the Difference?

If you're seeing quotes ranging from £100/month to £500/month, you might wonder what justifies the price difference. Here's what you typically get at different price points:

Budget (£75-150/month)

• Basic compliance — accounts filed, tax returns submitted
• Often offshore or heavily automated
• Limited or no proactive advice
• Slow response times
• You might never speak to the same person twice

This works if you have very simple affairs and just need the paperwork done.

Mid-Range (£200-400/month)

• All compliance handled
• Some proactive tax planning
• Reasonable response times
• A named accountant you can build a relationship with
• Advice when you ask for it

Good for established small businesses who want reliability and occasional advice.

Premium (£400-1,000+/month)

• Everything above, plus:
• Monthly management accounts
• Cash flow forecasting
• Proactive tax planning throughout the year
• Strategic business advice
• Fast response times
• Acting as your virtual finance director

Best for growing businesses who want an accountant actively involved in their financial decisions.

How to Choose the Right Accountant

Price shouldn't be your only consideration. Here's what else matters:

Industry Experience

An accountant who understands your industry will spot opportunities and risks that a generalist might miss. If you're a marketing agency, find someone who works with agencies. If you're in tech, find someone who understands R&D tax credits.

Communication Style

Do they respond quickly? Do they explain things clearly without jargon? Can you actually get them on the phone when you need to? A cheap accountant you can never reach isn't good value.

Proactive vs Reactive

Does the accountant wait for you to ask questions, or do they come to you with ideas? The best accountants are thinking about your tax position and business finances throughout the year, not just at year-end.

Technology

Modern accountants use cloud software like Xero or QuickBooks. This gives you real-time visibility of your numbers and makes collaboration easier. Avoid accountants still working in spreadsheets and asking you to post documents.

Red Flags to Watch For

Avoid accountants who:

• Won't give you a clear price upfront
• Charge for every email and phone call
• Take weeks to respond to simple questions
• Never proactively suggest ways to reduce your tax bill
• Can't explain things in plain English
• Don't use modern cloud accounting software

Is It Worth Paying More?

It depends on your situation, but often yes. Consider this:

The right accountant isn't a cost — they're an investment that should pay for themselves many times over.

Summary

For most small limited companies in the UK, expect to pay somewhere between £200 and £500 per month for a good all-round accounting service. Sole traders with simple affairs might pay £150-£350 per year for basic self-assessment.

Don't choose on price alone. The cheapest accountant might file your returns, but they probably won't save you money or help you grow. Find someone who understands your business, communicates well, and actively looks for ways to improve your financial position.

That's the accountant who's worth paying for.