How much does an accountant cost for a UK small business?

Roughly £30 to £60 a month for a sole trader, £100 to £250 a month for a small limited company on a fixed monthly fee, and £300+ a month for growing firms that need bookkeeping, VAT and payroll bundled in.

How much does an accountant cost for a limited company?

Most UK limited companies pay £100 to £250 a month on a fixed fee covering statutory accounts, corporation tax, confirmation statement, director Self Assessment and support. VAT-registered companies typically add £30 to £80 a month for quarterly returns.

How much does an accountant cost for a sole trader?

£30 to £60 a month is typical, covering Self Assessment, basic bookkeeping review and software. Higher-turnover sole traders or those close to the VAT threshold sit at the top of that range.

Is a fixed monthly fee cheaper than paying an accountant hourly?

For ongoing work, yes almost always. Hourly billing suits one-off cleanup projects. For anything recurring (year-end, VAT, payroll), a fixed monthly fee is cheaper, more predictable, and means you'll actually pick up the phone when you need advice.

What should a small business accountancy fee include?

For a limited company: statutory accounts, corporation tax return, confirmation statement, one director's Self Assessment, and ongoing email/call support. Software subscriptions, VAT returns and payroll are often bundled or clearly listed as add-ons.

Is an accountant worth the cost for a small business?

For almost every limited company, yes. Tax saved through better structuring, penalties avoided on late filings, and hours reclaimed usually cover the fee several times over. Very simple sole traders sometimes DIY, though even they benefit from an annual check-in.

How much does an accountant cost for a small business?

Short answer: for a UK small business, expect £30 to £60 a month if you're a sole trader, £100 to £250 a month for a small limited company, and £300+ a month for growing firms that need bookkeeping, VAT and payroll bundled in.

Below is what actually drives the fee, what a fair package includes, and how to make sure you're not overpaying.

Fixed monthly fees are now the norm

Ten years ago, small business accounting was billed by the hour. That's mostly gone. Most modern firms (Calibra included) charge a fixed monthly fee so you know the full year's cost upfront and can budget for it.

Fixed fees also change the relationship. When the meter isn't running, you're happy to pick up the phone or send a quick question, which is usually where the real value shows up.

Typical UK price ranges

Sole trader: £30 to £60 a month

Usually covers:

Self Assessment tax return.
Basic bookkeeping tidy-up or review.
Xero, QuickBooks or FreeAgent subscription (sometimes).
Email support during the year.

Higher-turnover sole traders or those close to the VAT threshold tend to sit at the top of that range.

Small limited company: £100 to £250 a month

Usually covers:

Statutory year-end accounts filed with Companies House.
Corporation tax return (CT600).
Confirmation statement filed with Companies House.
Self Assessment for one director.
Advice on salary vs dividends and director drawings.
Cloud accounting software.
Ongoing email and call support.

VAT-registered companies typically add £30 to £80 a month on top for quarterly VAT returns under Making Tax Digital.

Growing company: £300+ a month

Usually covers everything above plus:

Full bookkeeping done for you (not just reviewed).
Payroll for a small team and pension submissions.
Monthly or quarterly management accounts so you can see profit and cash properly.
Regular advisory calls, tax planning, and cash flow forecasting.

Fees scale with transaction volume, headcount and how hands-on you want the accountant to be.

What actually drives the fee

Six things move the price:

Business structure. Limited companies cost more than sole traders because there are more filings.
VAT registration. Quarterly returns and MTD compliance add cost.
Payroll. Priced per employee, per month, typically £4 to £10 a head.
Bookkeeping volume. More transactions equal more work, whether that sits with you or the accountant.
How much of it they actually do. "Review your bookkeeping" is cheaper than "do your bookkeeping for you". Make sure the quote is clear on which.
Advisory work. Regular management accounts and forecasting cost more than pure compliance, and are usually worth it once turnover is over £250k.

Hourly, fixed fee or ad-hoc: which is best?

Fixed monthly fee. Best for almost every small business. Predictable, unlimited support, one direct debit.
Hourly. Fine for one-off pieces of work (e.g. sorting out a historical mess) but not a long-term arrangement.
Ad-hoc. Cheapest sticker price, but you'll hesitate to call your accountant because every minute costs. False economy.

Is it worth it?

For a typical limited company that's £1,200 to £3,000 a year. The return usually comes from three places:

Tax saved through better structuring of salary, dividends, allowances and pension contributions.
Penalties avoided on late or incorrect filings, which routinely run to hundreds of pounds per slip.
Time reclaimed so you're not spending weekends reconciling a bank feed.

Most owners find the fee pays for itself several times over. There's more context in our guide to what an accountant actually does and in the overview of how we work with small businesses.

How to make sure you're not overpaying

Ask for the quote in writing with everything listed.
Make sure software subscriptions are either included or clearly excluded.
Check whether payroll is priced separately.
Confirm response times (24 hours for email is a fair benchmark).
Watch for firms that quote low then bill "extras" for every phone call.

If you'd like a straight fixed-fee quote for your business, have a chat with us. We'll show you what's actually in it and what it will cost.