Whether you’re a sole trader, freelancer, contractor, or limited company director in the UK, hiring an accountant in 2026 is one of the most valuable business decisions you can make — but it comes with real costs. This guide explains the typical UK accountant fee ranges, what services are included, how fees are calculated, and how to choose the right accountant for your business.
Accountant fees vary widely depending on business size, turnover, complexity of accounts, the services you need (bookkeeping, VAT, payroll, corporation tax, advisory) and the accountant’s location.
Why You Might Need an Accountant in 2026
Business owners often hire an accountant to:
- Prepare and file statutory accounts
- Submit Self Assessment tax returns
- Handle VAT returns and compliance
- Manage payroll and auto-enrolment pensions
- Advise on tax planning and deduction opportunities
- Prepare corporation tax returns
- Handle budgets, forecasts and cashflow plans
- Deal with HMRC enquiries
Accountants can help you save money in tax and penalties, which often outweighs their fees.
Typical Accountant Fees for Sole Traders (2026)
If you’re operating as a sole trader or freelancer, accounting costs are generally lower because your accounts are simpler.
Average fee ranges:
- Self-Assessment tax return only: £120 – £300
- Sole trader bookkeeping & tax return: £250 – £600
- With business advice + quarterly reviews: £500 – £900
For example, a sole trader with simple income and expenses might pay £250–£400 per year, whereas one needing bookkeeping and quarterly catch-ups could pay £600–£900.
Typical Fees for Limited Companies (2026)
Limited company accounts are more complex because they require:
- Statutory accounts
- Confirmation statement
- Corporation tax return
- Payroll submissions
- Annual accounts filing
Average fee ranges:
- Basic annual accounts + confirmation statement: £400 – £900
- Payroll services (per employee): £30 – £80 per month
- Corporation tax return: £300 – £800
- Full package (accounts + tax + payroll): £900 – £2,500+
Smaller limited companies with simple finances may fall in the £900–£1,500 range; larger companies with payroll and advisory needs often pay £1,500–£2,500+.
VAT Returns & VAT-Related Fees
VAT can add complexity, especially with quarterly returns.
Typical VAT fees:
- Quarterly VAT return only: £100 – £250 each
- VAT record keeping + returns: £450 – £1,200 annual total
- VAT registration help: £100 – £250
Many accountants charge VAT return fees separately from annual accounts, so expect VAT services to add £400–£1,200+ annually.
Payroll Services & Pension Auto-Enrolment
If you have employees, payroll adds cost. Auto-enrolment pensions are also compliance heavy.
Payroll fees:
- Monthly payroll processing: £30 – £80 per employee
- RTI submissions + reports: Usually included
- Pension auto-enrolment support: £120 – £350 per year
Example: A business with 3 employees might pay £90–£240 per month in payroll fees.
Hourly Rates vs Fixed Fees
Accountants charge in two main ways:
1. Fixed annual fee
Best for budgeting — common for small business packages.
2. Hourly rate
Common for ad-hoc work (HMRC enquiries, consultancy).
Typical hourly rates in 2026:
- Newly qualified accountant: £60 – £100/hr
- Experienced accountant: £100 – £200+/hr
- Specialist tax adviser: £150 – £300+/hr
Make sure you agree fees upfront to avoid surprises.
Specialist Accounting Services and Fees
Some tasks are billed as specialist services:
- Tax planning & advice: £150 – £350+ per hour
- HMRC investigations support: £150 – £300/hr
- Business restructuring advice: £200 – £400/hr
- MTD (Making Tax Digital) setup: £100 – £350
- CIS returns for construction subcontractors: £150 – £400+
These services are often optional but important for growing businesses.
Accountant Fees for Startups (2026)
Startups can benefit from accountant support early on.
Typical startup accounting packages:
- Company setup & registration: £100 – £350
- Basic bookkeeping & accounts: £450 – £900
- Tax registration (CT, VAT, PAYE): £150 – £350
- Advisory and cashflow planning: £300 – £800
Startups may choose limited packages at first, then scale up as revenue increases.
Factors That Affect Accountant Fees
Many factors influence how much you’ll pay:
Business complexity
More transactions = higher cost
Multiple income streams, inventory, fixed assets, etc.
Turnover
Higher turnover often leads to higher preparation work.
Payroll & Employees
Each additional employee increases monthly payroll cost.
Number of VAT returns
Quarterly returns add time and cost.
Cloud software integration
Accountants may charge more to migrate or manage software.
Location
Accountants in London and the South East typically charge more than those in Scotland, Wales or Northern England.
How Accountants Price Their Services
Common pricing structures include:
1. Tiered packages
- Bronze: Basics (returns & compliance)
- Silver: VAT + payroll
- Gold: Advisory + quarterly check-ins
2. Custom quotes
For larger firms, bespoke pricing based on time estimates.
3. Hourly billing
For ad-hoc queries and HMRC correspondence.
Always ask for a written engagement letter outlining exactly what is included.
Accountants vs DIY Accounting Software
Many small business owners compare accountants with DIY accounting software:
DIY Software Costs (for comparison)
- Xero: £12 – £35/month
- QuickBooks: £10 – £30/month
- FreeAgent: £15 – £35/month
Software helps with records and VAT returns, but does not replace a qualified accountant for tax planning and compliance.
Tip: Many accountants include software subscriptions in their package.
How to Choose the Right Accountant
Here are key factors:
Check Qualifications
Look for:
- Chartered Accountant (ACA / ACCA)
- Member of the Chartered Institute of Taxation (CIOT)
- Member of the Institute of Chartered Accountants in England & Wales (ICAEW)
Outbound reference:
https://www.icaew.com
Ask for References
Speak to other clients of similar business size.
Agree Services & Fees in Writing
Don’t rely on verbal agreements.
Check Communication
Firm responsiveness matters — especially during year-end and VAT periods.
Typical Annual Fees (2026 Snapshot)
Here’s a rough guide for small businesses:
| Business Type | Typical Annual Accountant Fees |
|---|---|
| Sole trader – simple | £250 – £600 |
| Sole trader + bookkeeping | £500 – £900 |
| Limited company – basic | £900 – £1,300 |
| Limited company + VAT + payroll | £1,500 – £2,500 |
| Limited + advisory + CIS | £2,000 – £4,000+ |
These figures depend on complexity, software, payroll size and accountant expertise.
How to Reduce Accountant Fees in 2026
Smart cost-cutting tips:
Keep organized records
Digitally upload receipts weekly.
Use cloud bookkeeping
Reduces manual data entry.
Batch admin tasks
Send transactions monthly, not sporadically.
Negotiate a package
Agree on annual fixed fees.
Avoid last-minute work
Accountants charge more for urgent tasks.
VAT, Payroll and Making Tax Digital (MTD)
In 2026 most VAT returns must be submitted through Making Tax Digital-compatible software.
Outbound reference:
https://www.gov.uk/guidance/vat-making-tax-digital
Accountants help with setting up and linking systems like:
- Xero
- QuickBooks
- Sage
- FreeAgent
Good accountants include this in their packages, but confirm upfront.
Dealing with HMRC Enquiries and Investigations
If HMRC opens an enquiry:
- Accountants can represent you
- Fees are usually charged hourly
- Typical HMRC enquiry support: £150 – £300/hr
This service is not part of standard packages but is important to avoid penalties.
Outbound Links (Useful Resources)
HMRC VAT registration & rules:
https://www.gov.uk/register-for-vat
Self Assessment tax returns:
https://www.gov.uk/self-assessment-tax-returns
Making Tax Digital (MTD) for VAT:
https://www.gov.uk/guidance/vat-making-tax-digital
ICAEW (Qualification body):
https://www.icaew.com
Suggested Internal Links (SEO)
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