Most UK small businesses pay between £37.50 and £200 per month for an accountant. The price depends on your business type. Sole traders with simple tax returns pay far less. Limited companies with payroll, VAT, and year end accounts pay more.
This guide shows the real costs by business type and by service.
Quick answer: accountant costs at a glance
Here are typical accountant fees for UK small businesses in 2026:
| Business type | Typical monthly cost | What’s usually included |
|---|---|---|
| Sole trader | £37.50 to £80/month | Self assessment, bookkeeping, tax advice |
| Small limited company (1 director) | £80 to £150/month | Year end accounts, corporation tax, self assessment, VAT, payroll |
| Landlord / property owner | £37.50 to £80/month | Self assessment, rental income reporting, tax advice |
| Freelancer / contractor | £60 to £120/month | Self assessment, limited company or sole trader support |
| CIS subcontractor | £200 to £300/month | CIS returns, monthly deductions, self assessment |
These are fixed monthly package costs. If your accountant charges by the hour, expect to pay £50 to £150 per hour for general work. Specialist chartered accountants can charge up to £250 per hour.
What affects the cost of an accountant?
Business structure, transaction volume, location, and software all affect the cost. Limited companies file more than sole traders, so they pay more. London firms charge 20 to 30% more than regional ones. Cloud software speeds up the work and often lowers the fee.
Two businesses of a similar size can still pay very different fees. These are the main things that change the price.
Your business structure
Limited companies have more to file than sole traders. They need statutory accounts, a CT600 for HMRC, and a confirmation statement for Companies House. Directors also need their own self assessment. More work means higher fees.
Sole traders and landlords have simpler filing needs, so they pay less.
Which services you need
A simple self assessment costs far less than a full monthly package. Full packages include bookkeeping, payroll, VAT, and management reports. Always compare quotes on the same basis. Two packages at the same price can include very different things.
Transaction volume
Most fixed fee packages have a transaction limit per quarter. If you process 50 transactions per quarter, you pay less than a business with 500. More volume means a higher monthly fee.
Accounting software
Accountants who use cloud software like Xero, QuickBooks, or FreeAgent work faster. They often charge less. Some include the software in the fee. If your records are on paper or spreadsheets, expect to pay more.
Your location
London and South East firms charge 20 to 30% more than regional firms. Online accountants usually charge the same rate no matter where you are.
Qualifications
A chartered accountant (ACCA or ACA qualified) charges more than an unqualified bookkeeper. But they are registered with HMRC, insured, and can give tax advice. For anything involving HMRC, always use a qualified accountant.
How much does an accountant cost by business type?
Sole traders typically pay £37.50 to £80 per month. Small limited companies pay £80 to £150 per month. Landlords pay £37.50 to £80 per month. CIS subcontractors pay the most at £200 to £300 per month. The number of HMRC filings, services included, and transaction volume all affect your monthly fee.
Sole traders
Sole traders typically pay £37.50 to £80 per month for a full package. Or £150 to £350 as a one off annual fee for a self assessment tax return alone.
A basic monthly package usually includes:
- Annual self assessment filed with HMRC
- A dedicated accountant to contact
- Basic bookkeeping or expense recording
- Tax saving advice
With one income source and no VAT or employees, a basic package is usually enough.
Small limited companies
A limited company with one director typically pays £80 to £150 per month. Companies with two directors, more transactions, or VAT often pay £120 to £200 per month.
A full limited company package usually includes:
- Year end statutory accounts
- Corporation tax return (CT600) filed with HMRC
- Confirmation statement filed with Companies House
- Director’s self assessment tax return
- VAT returns (quarterly, MTD compliant)
- Payroll for directors and employees
- A dedicated accountant
DASA’s limited company plans cover all of the above in one fixed monthly fee with no hidden costs. Contact us for current pricing.
Landlords and property owners
Landlords typically pay £37.50 to £80 per month. The price depends on how many properties you own and how complex your income is. One property with simple rental income sits at the lower end.
A standard landlord package includes:
- Annual self assessment with rental income
- Advice on what expenses you can claim (mortgage interest, repairs, letting fees)
- Capital gains tax advice if you plan to sell
- A dedicated accountant
Freelancers and contractors
Freelancers and contractors using a limited company pay £80 to £150 per month. The exact cost depends on which services you need. Your business structure affects what you pay an accountant. Speak to our limited company registration team if you have not decided on your structure yet.
CIS subcontractors
CIS (Construction Industry Scheme) accounting is more complex. Expect to pay £200 to £300 per month for a dedicated CIS service. This includes monthly return submissions, tracking deductions, and self assessment.
How much do individual services cost?
A standalone self assessment costs £150 to £350 per year. Quarterly VAT returns cost £40 to £150 per month as a standalone. Payroll for 1 to 5 employees costs £18 to £75 per month. Bookkeeping costs £20 to £45 per hour. Year end accounts with a corporation tax return cost £600 to £1,800 per year as a one off.
Here are typical 2026 prices if you want to pay per service.
Self assessment tax return
Typical cost: £150 to £350 (one off, per year)
A simple return for a sole trader costs less. A return for a director with dividends, rental income, and pension contributions costs more.
DASA includes self assessment in all plans. As your self assessment accountant, we handle the return at no extra charge.
VAT returns
Typical cost: £40 to £150 per month (or £100 to £300 per quarter) as a standalone
VAT returns must be filed digitally under Making Tax Digital rules. Your accountant handles filing VAT returns in the UK and checks what you can reclaim each period.
Payroll
Typical cost: £18 to £75 per month for 1 to 5 employees
This covers PAYE calculations, RTI submissions to HMRC, pension processing, and payslips. DASA’s payroll services for small businesses cover all of this in one monthly fee.
Bookkeeping
Typical cost: £20 to £45 per hour, or included in a monthly package
Hourly bookkeeping works for businesses that mostly manage their own records but need occasional help. A monthly package is almost always better value. DASA includes bookkeeping services in the UK as part of all monthly plans.
Year end accounts and corporation tax return
Typical cost: £600 to £1,800 per year as a standalone service
This covers your statutory accounts (filed with Companies House) and your CT600 (filed with HMRC). For most small limited companies, this is the minimum you need. A monthly package almost always works out cheaper than paying for this separately each year.
Company formation
Typical cost: £0 to £250 (Companies House registration fee: £100 online. Many accountants include this free with monthly plans.)
DASA includes free company formation with both the Silver and Gold monthly plans.
Fixed fee vs hourly rate: which is better?
Fixed monthly fees are better for most small businesses. Your cost is predictable and your accountant is motivated to be proactive. Hourly billing works for one off queries. With hourly billing, every email and phone call is chargeable. Costs spike around self assessment deadlines in January.
Here is why hourly billing is risky:
- You cannot predict your monthly cost
- You are charged for emails and phone calls, not just work
- There is no reason for your accountant to be fast
- Bills spike at busy times like January
Fixed fees are predictable. Your accountant gets paid the same whether they help you once or ten times. That means they are more likely to contact you before problems happen.
Hourly billing makes sense for a one off question. This might be a tax query or a company restructure. You do not need a full monthly commitment for either of those.
Is hiring an accountant worth the cost?
For most small businesses, yes. An accountant usually saves more than it costs. They find deductions you miss, prevent HMRC penalties, and free up your time. Accountancy fees are also tax deductible. Your real cost after tax relief is typically 20 to 25% less than the invoice you pay.
Tax savings cover the fee. A good accountant finds expenses you’re not claiming. They make sure you’re not overpaying HMRC. Many sole traders miss hundreds of pounds of allowable deductions every year.
HMRC penalties are expensive. Per HMRC’s self assessment penalties guidance, the initial late filing penalty is £100. It grows the longer you leave it. One penalty can cost more than a full year of accountancy fees.
Your time costs money too. Every hour you spend on bookkeeping or tax forms is time away from your business. For most business owners, that time is worth more than the accountant’s fee.
Are accountant fees tax deductible? Yes. They count as an allowable business expense. After tax relief, you’ll pay 20 to 25% less than the listed fee.
How to get the best value from your accountant
Cheapest is not always best. Here is what actually matters when comparing accountants.
Check if software is included. Good accountants use Xero, QuickBooks, or FreeAgent. If you have to pay for software on top, add that to the total cost.
Compare packages carefully. Check what is in the package before you sign. A £60/month plan without VAT is not the same as a £99/month all in package. Ask for a full list of what’s included.
Find a dedicated contact. If your account moves between different people each year, things get missed. One accountant who knows your business will spot problems faster.
Choose qualified. ACCA or ACA qualification means your accountant is insured, regulated, and registered with HMRC. An unqualified bookkeeper cannot give tax advice or represent you with HMRC.
Check MTD readiness. From April 2026, self employed people and landlords over £50,000 must file quarterly with HMRC. This applies under Making Tax Digital for Income Tax. Your accountant must already be set up for this.
DASA Accountancy uses fixed monthly fees with no hidden costs. Every plan includes a dedicated ACCA-qualified accountant, cloud software, and all the filings your business needs.
Get a fixed-fee quote and we’ll send you our current pricing for your business type.
This article is a general guide to accountant fees in the UK. Prices vary by firm, services, and business complexity. Speak to a qualified accountant before making decisions about your business finances.
Frequently Asked Questions
Can I do my own accounts and save money?
Yes, for simple situations. Xero or QuickBooks handle basic bookkeeping. HMRC’s portal handles simple self assessment. But errors cost more to fix than to prevent. DIY works for sole traders with simple finances. For limited companies with VAT and payroll, professional help is almost always worth it.
Do I need an accountant if I’m a sole trader?
Not legally. But most sole traders save more than they spend. Accountancy fees are tax deductible, so the real cost is lower than the invoice.
How often will I speak to my accountant?
It depends on the firm. At DASA, every client has one named accountant they contact directly. You get alerts before deadlines and when tax rules change that affect you.
What is the difference between an accountant and a bookkeeper?
A bookkeeper records your day to day transactions. An accountant prepares your statutory accounts, handles HMRC filings, and gives tax advice. Most monthly packages include both.
Is a cheap online accountant as good as a traditional firm?
Sometimes. Online firms have lower costs and can pass savings on. But check that you get a real person to contact, not just software with a help button. Always confirm they are ACCA or ACA qualified.