Most UK individuals and small businesses pay between £150 and £3,000 a year for an accountant, depending on what they need. A simple Self Assessment tax return typically costs £150-£350, a sole trader paying for full bookkeeping and accounts will spend £600-£1,500 a year, and a limited company usually pays £1,000-£3,000 a year (often £80-£250 a month). The more complex your affairs and the more VAT, payroll and bookkeeping involved, the higher the fee.
Below is a clear breakdown of typical accountant fees in 2026, what drives the price, and how to avoid overpaying.
Typical UK accountant fees in 2026
| Service | Typical 2026 fee |
|---|---|
| Self Assessment tax return only | £150-£350 |
| Sole trader (accounts + tax return) | £600-£1,500 / year |
| Limited company (annual accounts + CT600) | £1,000-£3,000 / year |
| Monthly limited company package | £80-£250 / month |
| Bookkeeping (add-on) | £25-£60 / hour or £100-£300 / month |
| Payroll | £4-£12 per payslip / month |
| VAT returns | £100-£250 per quarter |
| One-off tax advice / consultation | £100-£250 per hour |
These are realistic market ranges, not quotes. London and specialist firms sit at the top end; online and fixed-fee practices like Zmartly tend to sit lower and bundle services together. If you are weighing up a remote, app-based firm, our guide to online accounting services for UK small businesses explains what you get for the lower fee. You can see transparent packages on our pricing page.
How accountants charge: fixed fee vs hourly
There are two common models.
Fixed monthly or annual fee. You pay a set amount that covers an agreed list of work, accounts, tax return, a set number of payroll runs, and so on. This is now the norm for small businesses because you know exactly what you'll pay, and it usually works out cheaper than hourly billing.
Hourly rate. Typically £25-£60 an hour for a bookkeeper, £100-£250 an hour for a qualified accountant, and more for tax specialists or partners at larger firms. Hourly billing suits one-off advice but makes budgeting harder.
For ongoing work, a fixed fee is almost always the better deal.
How much does an accountant cost per month?
Most small businesses on a fixed-fee package pay £80 to £250 a month. Where you land depends on your setup.
- £80-£120 a month: a sole trader or simple limited company, no VAT, no payroll.
- £120-£180 a month: a growing limited company with VAT returns and director payroll.
- £180-£250+ a month: VAT, multiple staff on payroll, and regular bookkeeping included.
A monthly fee spreads the cost evenly and usually bundles your accounts, tax returns and day-to-day questions, so there is no year-end surprise bill. If you would rather see fixed monthly figures for your own situation, our pricing page sets them out clearly.
What drives the price up
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Your business structure
A limited company costs more than a sole trader because there's more compliance: statutory accounts filed at Companies House, a Corporation Tax return (CT600), a confirmation statement, and director payroll. A sole trader with a single income stream is the cheapest to look after.
Turnover and VAT
Once your taxable turnover passes the VAT registration threshold of £90,000, you must register for VAT and file returns, usually quarterly. That's extra work, so expect to pay more. See HMRC's guidance on when to register for VAT for the rules.
Bookkeeping quality
This is the single biggest swing factor. Hand over a tidy set of records or a connected accounting app and you'll pay less. Hand over a carrier bag of receipts and you'll pay for the time it takes to sort them. Good bookkeeping habits genuinely lower your bill.
Payroll and pensions
If you employ staff, payroll runs, RTI submissions and auto-enrolment pension admin add £4-£12 per payslip per month, plus a small standing charge.
Making Tax Digital
From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates to HMRC under Making Tax Digital for Income Tax. More submissions mean more work, and many accountants have repriced packages to reflect it. Factor this in if your self-employed income is above £50,000.
How much for a Self Assessment tax return?
If you only need a personal tax return filed, expect £150-£350. It rises if you have multiple income sources, rental property, dividends, capital gains or foreign income.
A few thresholds worth knowing for 2026/27:
- Personal allowance: £12,570 (tax-free)
- Higher rate starts at £50,270; the additional rate at £125,140
- Dividend allowance: £500
- Trading allowance: £1,000, if your self-employed income is under this, you may not need to register at all
If your tax affairs are simple, a fixed-fee return is the most cost-effective option. Our FAQ page covers what counts as "simple" and when you actually need an accountant.
How much does a limited company accountant cost?
A limited company typically pays £1,000 to £3,000 a year, or £80 to £250 a month on a package. You pay more than a sole trader because there is more compliance to handle:
- Statutory annual accounts filed at Companies House.
- A Corporation Tax return (CT600) filed with HMRC.
- A confirmation statement each year.
- Director payroll and, where relevant, dividend paperwork.
VAT returns and bookkeeping sit on top of that base fee. If you are weighing the running costs of a company against a sole trade, our guide on whether a limited company needs an accountant walks through the trade-offs.
How to keep your accountant costs down
- Keep clean records. Use bookkeeping software and reconcile regularly, it directly cuts your fee.
- Bundle services. A combined accounts-plus-tax-return package usually beats paying for each piece separately.
- Choose a fixed fee. Avoid open-ended hourly billing for routine work.
- Don't over-buy. A simple sole trader rarely needs a premium full-service package.
- Ask what's included. Confirm whether the quote covers your tax return, VAT, payroll, references and ad-hoc questions, surprise add-ons are where budgets blow out.
Is an accountant worth the cost?
For most businesses, yes. A good accountant typically saves more than they charge by claiming the right expenses, structuring income tax-efficiently, keeping you off HMRC's penalty list (a missed Self Assessment deadline triggers an automatic £100 penalty), and freeing up your time. The fee is also a deductible business expense.
If your affairs are very simple, one income, well under the VAT threshold, comfortable filing online, you may manage on your own. The moment VAT, payroll, a limited company or property income enters the picture, professional help usually pays for itself.
Do I need an accountant at all?
Not everyone does. If you have a single source of income, stay well below the £90,000 VAT registration threshold, and are comfortable filing online, you can often manage your own return for free. The £1,000 trading allowance means very small side incomes may not even need reporting.
Once VAT, payroll, a limited company or property income is involved, the time saved and the reliefs claimed usually outweigh the fee. If you are unsure which side of the line you fall, see our guide on whether you need to file a Self Assessment, or how to switch to a fixed-fee accountant if you already have one and feel you are overpaying.
Frequently Asked Questions
How much does an accountant cost per month in the UK?
Most UK small businesses pay £80 to £250 a month for an accountant on a fixed-fee package. A simple sole trader sits at the lower end, and a VAT-registered limited company with payroll sits at the top. The fee usually bundles your accounts, tax returns and routine queries.
How much does an accountant charge for a Self Assessment tax return?
A straightforward Self Assessment tax return typically costs £150 to £350 in 2026. It rises with extra income sources such as rental property, dividends, capital gains or foreign income, where £400 or more is common for a more complex personal return.
How much does an accountant cost for a limited company?
A limited company usually pays £1,000 to £3,000 a year, often £80 to £250 a month. That covers your statutory accounts, the CT600 Corporation Tax return, a confirmation statement and director payroll. VAT and bookkeeping add to the fee.
Is paying for an accountant tax deductible?
Yes. Accountancy fees for preparing your business accounts and tax returns are an allowable business expense, so they reduce your taxable profit. The cost of dealing with a personal tax investigation is treated differently, so check what your engagement covers.
Talk to a Zmartly accountant
Not sure which bracket you fall into or what a fair fee looks like for your situation? Get in touch and we'll give you a clear, fixed-fee quote with no jargon and no surprises, so you know exactly what you're paying before you commit.
