Accountant fees in the UK have no fixed standard — they vary based on the complexity of your affairs, the accountant's experience and location, and the scope of the service you need. Understanding typical ranges helps you assess quotes, avoid overpaying, and spot when a price is suspiciously low. Here's an honest guide to what accountancy services typically cost in 2025.
Self Assessment Tax Return
For individuals with relatively straightforward affairs — employment income, some savings interest, maybe a small amount of freelance work — a Self Assessment return typically costs between £150 and £300. If you have more complex affairs — multiple income sources, rental properties, capital gains, foreign income, or business income — expect to pay £300 to £600+. The key driver is the time required to gather information and complete the return accurately.
| Complexity | Typical Cost Range |
|---|---|
| Basic (employment + simple extras) | £150–£250 |
| Self-employed sole trader | £250–£450 |
| Rental property (1–2 properties) | £300–£500 |
| Multiple properties or complex income | £500–£900+ |
Bookkeeping
Monthly bookkeeping for a small business typically costs between £50 and £200 per month, depending on transaction volume and complexity. A sole trader with 30–50 transactions per month might pay £75–£100/month. A small limited company with multiple bank accounts, VAT, and payroll might pay £150–£250/month. Some accountants charge more during year-end periods when additional work is required to prepare for filing.
Many clients reduce the cost of bookkeeping by doing the data entry themselves using software like Xero or QuickBooks, with the accountant reviewing the records periodically. This can halve the monthly cost while maintaining accuracy.
Annual Accounts for a Limited Company
Preparing statutory accounts and the Corporation Tax return (CT600) for a small limited company typically costs between £500 and £2,000 per year. The wide range reflects the complexity involved: a dormant company might pay £500; an active company with multiple revenue streams, several employees, and complex transactions might pay £1,500–£2,000. Very large or complex SMEs can pay significantly more.
Annual accounts fees often include: preparation of statutory accounts, filing at Companies House, preparation and submission of the CT600, and computing the Corporation Tax liability.
VAT Returns
If your accountant prepares and submits your quarterly VAT returns, this typically costs £75–£200 per quarter (£300–£800 per year). The cost depends on how clean your bookkeeping records are — if your accountant has to reconcile messy records before preparing the return, the cost will be higher. Many accountants include VAT returns as part of an annual package that also covers bookkeeping and accounts.
Payroll
Payroll administration for a small number of employees is typically charged per employee per month: around £5–£15 per employee, with a minimum monthly charge of £25–£50. Running payroll for one or two director/employees might cost £25–£35/month; payroll for 10 employees might cost £80–£120/month. This includes running the payroll calculations, issuing payslips, submitting RTI reports to HMRC, and processing P60s at year end.
Company Formation
Registering a new limited company at Companies House costs just £50 if you do it directly online. Accountants often handle this as part of a broader service package. If you want additional services — a registered office address, drafting bespoke articles of association, setting up the company with HMRC for Corporation Tax, VAT, and PAYE — an accountant might charge £200–£500 for the full setup service.
What Affects the Price?
Complexity
The single biggest driver of accountancy fees is the complexity of your affairs. Multiple income streams, overseas income, significant capital transactions, HMRC investigations, and complex VAT arrangements all take more time and expertise to handle correctly. Simple affairs are cheap to account for; complex ones are more expensive.
Location
London and South East practices typically charge more than those in other parts of the UK, reflecting higher costs of living and business. However, with most accountancy work done remotely and via cloud software, location matters less than it once did. A London-based client can work with a competent regional accountant and receive excellent service at lower fees.
Size and Prestige of the Firm
The Big Four (Deloitte, PwC, EY, KPMG) and mid-tier firms charge significantly more than small practices and sole practitioner accountants. For most small businesses and individuals, there is no meaningful benefit from using a large firm — the work is done by junior staff either way. A qualified, experienced accountant in a small practice will typically provide more partner-level attention at lower cost.
Record-Keeping Quality
If you hand your accountant a box of mixed-up receipts with no records, the time required to sort everything out will be charged to you. Businesses with organised digital records — reconciled bookkeeping, scanned receipts, and clear bank statements — are significantly cheaper to service.
Fixed Fee vs Hourly Rate
Most small business accountants now charge fixed fees for defined services — so much per month for bookkeeping, so much per year for annual accounts and tax returns. This gives you cost certainty and removes the incentive to ask questions sparingly. Hourly rates (typically £80–£250+ per hour depending on the accountant) are more common for ad hoc advice, HMRC investigations, and tax planning work.
If an accountant quotes you a fixed fee, confirm exactly what's included. Does it cover VAT returns? Payroll? Responding to HMRC correspondence? The cheapest headline price often excludes services that then get billed as extras.
Red Flags
Be cautious about accountants who:
- Offer prices that seem drastically below market rates — quality has a cost
- Don't hold a professional qualification (ACCA, ACA, CIMA, AAT) or aren't members of a recognised body
- Can't explain their fees clearly or provide a written engagement letter
- Suggest aggressive tax positions without clearly explaining the risk
- Are hard to reach and slow to respond
Is It Worth the Cost?
For most businesses, the answer is yes — often by a significant margin. A good accountant will typically:
- Identify deductions and reliefs you would have missed
- Structure your affairs to minimise legitimate tax
- Keep you compliant and avoid costly HMRC penalties
- Free up your time to focus on growing your business
- Provide financial insight that supports better decision-making
The question isn't really whether to use an accountant — it's whether the accountant you use is delivering value commensurate with their fee.
Working with SMD Accountancy
At SMD Accountancy, we operate on transparent fixed fees tailored to each client's needs. We'll tell you exactly what's included, won't surprise you with unexpected extras, and work with you to make your record-keeping as efficient as possible. If you'd like to understand what we'd charge for your specific situation, book a free 20-minute call and we'll give you a clear, honest quote.