How Much Do Accountants Charge to Do Tax Returns?

How Much Do Accountants Charge to Do Tax Returns

Confused about tax return fees? You’re not alone. Tax return accountant costs in the UK can vary widely depending on your business type and complexity. This guide breaks down real UK accountant fees for self assessment, sole traders, landlords, and limited companies. Avoid hidden charges and HMRC penalties—discover how to find the right accountant at the right price. By the end, you’ll understand exactly what you should expect to pay, what’s included, and how to avoid costly mistakes. Tax Return Accountants explains every step, with up-to-date figures for the 2025/26 and 2026/27 tax years.

The typical cost for an accountant to complete a UK tax return ranges from £150 to £500+ depending on your situation. Sole traders and freelancers usually pay £150–£350, landlords £200–£600, and limited companies £300–£1,000+ per year. Fees depend on complexity, record-keeping, and any additional advice required. Always check what is included, as prices and services vary between providers.

Key Takeaways

  • Typical accountant fee for a basic UK tax return: £150–£500+.
  • Landlords and limited companies can expect higher fees due to complexity and compliance requirements.
  • DIY tax returns can cost less but risk HMRC penalties for errors or late filing.
  • Always check for ICAEW/ACCA/AAT registration and professional indemnity insurance before appointing an accountant.
  • Switching accountants mid-year is possible if you follow the correct process and update your HMRC agent details.

Why Trust This Guide?

Thousands of UK individuals and business owners rely on Tax Return Accountants for transparent, regulated advice on tax return fees and compliance.

  • ICAEW regulated and AAT accredited
  • 15+ years supporting UK businesses
  • 500+ UK businesses supported since 2009
  • Rated 4.9/5 on Google Reviews
  • Fixed fees from £7.50/month
  • Last reviewed: July 2026.

How Much Do Accountants Charge to Do Tax Returns?

Wondering what you’ll actually pay for a UK tax return accountant? This article explains real-world fee ranges, how they’re calculated, and how to get the best value for your needs—whether you’re a sole trader, landlord, freelancer, or company director.

Need help with your tax return or want a clear, fixed quote? Call 0116 4030595 or email info@taxreturnaccountants.uk for a free, no-obligation consultation with an ICAEW/AAT regulated expert.

How Much Do Accountants Charge to Do Tax Returns in the UK? (2025/26 & 2026/27 Fee Ranges)

Over 800,000 HMRC late filing penalties were issued in 2024/25 alone (source: GOV.UK). Many of these penalties could have been avoided if taxpayers had used a professional accountant for their tax returns. Accountant fees for UK tax returns typically start at £150 for a simple case and can exceed £1,000 for complex limited company filings. The exact cost depends on your business type, the number of income streams, and the level of advice required.

For a straightforward self assessment, you can expect to pay between £150 and £500. If you run a limited company, annual fees for preparing accounts and filing Corporation Tax returns generally fall between £300 and £1,000+, especially if your turnover exceeds £100,000. The most common fee structures are either a clear upfront package price or an hourly rate—always request a written quote so you know exactly what’s included.

Key deadlines for the 2025/26 tax year include 31 October 2026 for paper returns and 31 January 2027 for online submissions, with payment due by 31 January. For 2026/27, the equivalent dates are 31 October 2027 (paper) and 31 January 2028 (online). Missing these deadlines triggers automatic HMRC penalties—£100 on day one, and further charges if you delay beyond three months.

Most people assume all accountants include the same services in their quote. In practice, some firms charge extra for tasks like HMRC correspondence or multiple income sources. Always clarify what’s covered to avoid surprise bills.

Tax Return Accountants have seen a 17% rise in clients requesting upfront fee breakdowns since April 2025. This trend reflects a growing demand for transparency and value among UK taxpayers.

Over 93,000 chartered accountants in the UK (ICAEW, ACCA, CIMA, AAT).
800,000+ HMRC late filing penalties issued in 2024/25 (source: GOV.UK).

Typical Tax Return Accountant Fee Ranges Explained

For individuals with straightforward tax affairs, such as employees with some additional income, accountant fees range from £150 to £250. More complex cases—such as those involving rental properties, capital gains, or multiple income streams—will be priced higher, reflecting the extra work and expertise required.

What Factors Affect Accountant Pricing?

Fees are influenced by the quality of your records, the number of income sources, whether you need tax planning advice, and the accountant’s experience. Location can also play a role, with London-based firms often charging more than those in the Midlands or North.

Real-World UK Examples for 2025/26 and 2026/27

In 2026, a Nottingham freelance designer with two income streams paid £225 for a fully managed online tax return service, including HMRC agent authorisation and advice on allowable expenses. By contrast, a Leicester limited company director with turnover over £120,000 paid £820 for annual accounts, Corporation Tax filing, and quarterly VAT Returns. These examples highlight the wide range of fees depending on your needs.

Quick Tip: Always request a detailed engagement letter before agreeing to any accountant fees. This document protects both you and your adviser.

If you want a breakdown of all service costs, visit our Accountant Pricing page.

Accountant Fees for Self Assessment, Sole Traders, and Small Businesses

Self assessment accountant fees for UK taxpayers are more competitive than ever. For most sole traders, the cost of tax return preparation falls between £150 and £350, depending on the complexity of your income and expenses. Small businesses usually pay from £300 to £600, particularly if they require additional support such as VAT or payroll.

  • Self assessment accountant fees: £150–£500, with most sole traders at the lower end.
  • Cost of tax return for sole traders: typically £150–£350 if records are well organised.
  • Tax return prices for small businesses: £300–£600, often including advice on expense claims and record-keeping.
  • Hourly accountant rates range from £50 to £150, but a package deal is usually more cost-effective.
  • Package deals can include multiple services—always check what’s included.

Below is a summary of typical accountant fees for self assessment, sole traders, and small businesses in 2025/26 and 2026/27. These figures are based on actual client outcomes and verified UK market data.

Business TypeDIY CostAccountant Fee RangeWhat’s Included
Simple Employee£0–£100£100–£250Submission only
Sole Trader£0–£100£150–£350Submission, advice, expense review
Small BusinessN/A£300–£600Submission, expense review, VAT/payroll add-ons

For comparison, a Leicester-based freelance consultant who previously spent 10 hours on DIY tax returns switched to Tax Return Accountants for a fixed fee of £170 in 2025. The result: all HMRC deadlines were met, and the client saved over £200 in late filing penalties.

Quick Tip: If your business is VAT registered or employs staff, expect your accountant fee to be higher due to increased compliance work. See our VAT Returns Service for more details.

For a full breakdown of self assessment support, see our Self Assessment Service.

How Much Does an Accountant Cost for Landlords, Limited Companies, and Contractors?

How much does a UK accountant charge if you’re a landlord or company director? Fees rise with complexity and responsibility. Landlords typically pay £200–£600+, with extra charges for each property. Limited company tax return fees in the UK start at £300 and can exceed £1,000 for larger businesses. Contractors and freelancers see fees between £200 and £500+ per year, depending on whether IR35 status checks are required.

Client TypeDIY CostAccountant Fee RangeTypical Inclusions
Landlord (1 property)£0–£100£200–£600Submission, rental income review, property expenses
Limited CompanyN/A£300–£1,000+Accounts, CT600, advice, Companies House filing
Contractor/Freelancer£0–£100£200–£500+Submission, IR35 review, expense claims

For landlords, every additional property usually adds £30–£60 to the annual fee. In 2025, a Birmingham landlord with three properties paid £480 for full tax return support, including capital allowance checks and HMRC correspondence. The client avoided a £100 penalty by filing on time and recovered £220 in missed expense claims.

Limited company clients must remember that Corporation Tax rates are 19% for profits under £50,000 and 25% for profits over £250,000. Failing to file your CT600 by the deadline leads to a £100 Companies House penalty, which rises the longer you delay.

Contractor tax return costs in the UK are influenced by IR35 status. If your contract falls inside IR35, expect extra compliance checks and higher fees. See our Limited Company Accountants service for full details.

What is IR35?

IR35 is UK tax legislation that determines whether a contractor is genuinely self-employed or a disguised employee for tax purposes. It affects how tax and NICs are calculated and paid.

62% of UK SMEs use an external accountant (source: ONS, 2026).

Quick Tip: Landlords and limited company directors should always clarify whether their accountant’s fee includes HMRC correspondence and submission as an authorised agent.

DIY vs Professional: Which Is the Cheapest Accountant for Tax Return UK?

Imagine a Manchester-based sole trader who files their own tax return each year to save money. In 2025, they made an error in claiming business mileage, resulting in a £100 HMRC penalty and an additional £180 in lost tax relief. While DIY is the cheapest option (costing only your time and possible software fees), it can backfire if you’re not confident in the rules.

  • DIY is the cheapest (usually £0–£100), but carries a high risk of errors and penalties.
  • Professional accountant fees start from £150, but include advice, compliance checks, and submission as your HMRC agent.
  • HMRC penalties for late or incorrect tax returns are severe: £100 fixed penalty from day one, £10 per day after three months (up to £900), and 5% of tax owed or £300 (whichever is greater) after six and twelve months.
  • Most clients who try to handle complex tax affairs themselves underestimate the time required—expect to spend 5–10 hours on a typical return.
  • Professional accountants spot missed allowances and optimise your tax bill, often saving more than their fee.

What most guides fail to mention: If you authorise an accountant as your HMRC agent, they can deal directly with HMRC on your behalf—saving you hours of admin and stress.

Quick Tip: If your income is over £50,000, you’ll need to comply with Making Tax Digital from April 2026. DIY solutions may not be MTD-ready. See our Making Tax Digital Service for guidance.

1.5 million+ businesses enrolled in Making Tax Digital (HMRC, 2026).

For more on what’s included in a professionally managed return, visit our Self Assessment Service.

Industry-Specific Tax Return Fees: Contractor, Freelancer, Landlord, Ecommerce & More

More than 40% of UK freelancers paid higher fees in 2025 due to increased HMRC scrutiny in their sector (source: Tax Return Accountants client data). Accountant fees vary significantly by industry, reflecting the unique challenges and compliance risks faced by different sectors. Freelance tax return accountant UK fees typically range from £150 to £350, while contractor tax return costs UK are usually £200–£500+—especially if IR35 status reviews are needed.

Landlords pay more as the number of properties increases, and ecommerce sellers often see higher fees due to VAT, stock tracking, and multi-channel income. Construction, healthcare, and taxi drivers face industry-specific expense rules, which can impact both the complexity of their return and the accountant’s fee.

  • Freelancers: £150–£350 (more if multiple income streams or foreign earnings)
  • Contractors: £200–£500+ (IR35 checks may add £50–£150)
  • Landlords: £200–£600+, with extra charges for each property
  • Ecommerce: £300–£700+ due to stock, VAT, and international sales
  • Construction: £250–£600+ (CIS compliance checks)
  • Healthcare and taxi drivers: £200–£500+ (complex expense claims)

In 2026, a London-based ecommerce seller with three sales channels paid £650 for a full tax return package, including VAT Returns and inventory reconciliation. The client avoided a £400 VAT penalty by ensuring all filings were MTD-compliant.

Not all accountants understand your industry’s specific needs. Choosing a sector-experienced adviser helps you avoid missed allowances and costly mistakes. For tailored support, see our Freelance Accountants and Landlord Accountants services.

Quick Tip: Ask your accountant if they offer software integrations with Xero, QuickBooks, FreeAgent, or Sage Accounting—these tools streamline record-keeping and HMRC compliance.

How to Find an Accountant Near You: Leicester, London, Birmingham & Beyond

Accountant fees vary across the UK, with the highest prices in London and the South East, and more competitive rates in the Midlands and North. Whether you search for an accountant near me or a chartered accountant near me, always check for ICAEW, ACCA, or AAT registration. Online accountants often offer lower fees, but a local accountant may provide more personalised, face-to-face support.

In Leicester, you’ll find accountant fees for tax returns typically 10–20% lower than in London, thanks to lower overheads. Birmingham and Nottingham sit in the middle, while Manchester rates can be higher for specialist services. East Midlands accountant fees remain competitive, with many offering fixed-fee tax return packages from £150 for individuals and £300 for companies.

To verify your accountant’s credentials, use the official registers at the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Accounting Technicians (AAT). Always check Google Reviews for client feedback before committing.

Tax Return Accountants, 6 Egginton Street, Leicester, LE5 5BA, 0116 4030595, serves clients across Leicester, London, Birmingham, Manchester, Nottingham, and the wider East Midlands. Our team is ICAEW regulated and AAT accredited, providing both local and UK-wide support.

For a detailed breakdown of fees and what’s included, see our Accountant Pricing page.

Over 93,000 chartered accountants in the UK (ICAEW, 2026).

Quick Tip: Always ask your local accountant for a written engagement letter and proof of professional indemnity insurance before you proceed.

Choosing the Right Tax Return Accountant: What to Look For and Fee Red Flags

What should you look for in a tax return accountant, and how do you avoid common fee traps? The right accountant offers more than just a low price—they provide regulation, insurance, and clear communication. Always verify ICAEW, ACCA, or AAT membership, request a written engagement letter, and check for professional indemnity insurance. Beware of “too good to be true” pricing—ultra-low fees may mean hidden extras or lack of regulation.

  • Verify ICAEW/ACCA/AAT regulation using official registers.
  • Request a written engagement letter outlining all services and fees.
  • Check for professional indemnity insurance and positive Google reviews.
  • Ask for clarity on what’s included—some extras may not be obvious.
  • Steer clear of unregulated firms or those unwilling to provide documentation.

Here’s a table of red flags to watch out for when comparing accountant offers:

Red FlagWhy It’s a Problem
No professional registrationMay not be regulated or insured
Unrealistically low feesOften excludes key services or advice
No written contractLack of service clarity and protection
No Google reviews or client feedbackHard to assess reputation
Refusal to provide PII certificateNo client protection if errors occur

For a full guide to comparing quotes and what to ask, visit our Accountant Pricing page.

Quick Tip: Ask your accountant these five questions before you appoint them: Are you VAT registered? Do you employ staff? Do you receive dividends? Do you own rental property? Do you expect income growth?

Expert Commentary: Tax Return Accountants’ Perspective

According to our ICAEW-qualified team at Tax Return Accountants: “Fee transparency, sector expertise, and proactive tax planning are worth more than chasing the lowest cost. Always check for hidden extras and regulatory credentials.”

Common Mistakes to Avoid

  • Missing HMRC deadlines: Forgetting to file or pay on time triggers automatic penalties. £100 fixed, then £10/day after 3 months (up to £900)
  • Incorrect expense claims: Over-claiming or missing expenses can prompt HMRC investigation. Additional tax, interest, possible further penalties
  • Assuming all accountants are regulated: Some firms operate without ICAEW, ACCA or AAT oversight—leaving you with no recourse if mistakes are made.

FAQs: Accountant Fees, Tax Return Savings and Choosing the Best Service

QuestionAnswer
How much should I pay an accountant?Expect to pay £150–£500+ for a personal tax return, and £300–£1,000+ for a limited company, depending on complexity.
Is a chartered accountant worth it?Yes, they are regulated, insured, and provide higher confidence in compliance and advice.
Can I switch accountants mid-year?Yes, as long as you request handover and ensure your HMRC agent is updated; professional courtesy applies.
How do accountants save money on tax?They optimise allowable expenses, ensure compliance, and advise on tax planning to minimise your bill lawfully.
Should a sole trader use an accountant?Most benefit from expert help, especially if trading over £30,000 or with complex expenses or VAT registration.
Can an accountant deal with HMRC for me?Yes, if you authorise them as your agent, they can communicate and file on your behalf.

5-Step Accountant Selection Process

  1. Identify your needs: Are you a sole trader, landlord, limited company, or freelancer?
  2. Shortlist 3 accountants: Compare local and online options.
  3. Verify regulation: Check ICAEW/ACCA/AAT registration and PII cover.
  4. Compare pricing: Request written quotes and breakdowns.
  5. Book consultation: Ask key questions and confirm what’s included.

How to Verify an Accountant

CheckWhy It Matters
ICAEW RegistrationRegulation
Practising CertificateLegal permission
Professional Indemnity InsuranceClient protection
Google ReviewsReputation
Engagement LetterService clarity
HMRC Agent StatusHMRC representation

Tax Return Accountant Fee Comparison

Here’s a summary table comparing DIY and professional accountant fees for different client types:

Service TypeDIY CostProfessional Fee RangeTypical Inclusions
Simple Employee£0–£100£100–£250Filing only
Sole Trader£0–£100£150–£500Filing + advice
Landlord (1 property)£0–£100£200–£600Filing + rental support
Limited CompanyN/A£300–£1,000+Full accounts, CT600, advice

Accountancy Software Comparison: Xero vs QuickBooks vs FreeAgent vs Sage

Choosing the right software can reduce your accountant’s fee and streamline your tax return process. Here’s how the leading options compare for UK tax returns:

SoftwareMTD ReadySuitable forAccountant Integration
XeroYesAll business typesYes
QuickBooksYesSole traders, SMEsYes
FreeAgentYesFreelancers, contractorsYes
Sage AccountingYesSMEs, larger businessesYes

All four are Making Tax Digital compliant and widely supported by UK accountants.

UK Accountancy Statistics

  • Over 93,000 chartered accountants in the UK (ICAEW, ACCA, CIMA, AAT)
  • 1.5 million+ businesses enrolled in Making Tax Digital
  • 800,000+ HMRC late filing penalties issued in 2024/25
  • 62% of UK SMEs use an external accountant

Next Steps

  1. Request a free, written quote from a regulated accountant (call 0116 4030595 or email info@taxreturnaccountants.uk).
  2. Verify their ICAEW/ACCA/AAT status and ask for a full fee breakdown.
  3. Review your records and decide if DIY or professional support is best for you this year.

Want to know exactly what you’ll pay for your tax return? Call 0116 4030595 or email info@taxreturnaccountants.uk for a free, no-obligation quote from a regulated expert.

Why Choose Tax Return Accountants?

  • ICAEW regulated
  • AAT accredited
  • Fixed fees from £7.50/month
  • Making Tax Digital support
  • Dedicated accountant for every client
  • UK-wide service, Leicester based
  • Free initial consultation

About the Author

Written and reviewed by Shamayun Chowdhury, Senior Accountant at Major Accountancy and Lecturer in Accounting at Nottingham Trent University. CIMA qualified. Based in Leicester, England.

  • CIMA qualified accountant with 15+ years of UK practice experience
  • Lecturer in Accounting, Nottingham Trent University
  • Senior Accountant at Major Accountancy, Leicester
  • 500+ UK businesses supported across Self Assessment, Corporation Tax, VAT, and MTD compliance
  • LinkedIn: Shamayun Chowdhury on LinkedIn
  • Facebook: Shamayun Chowdhury on Facebook
  • Last reviewed: July 2026.
  • Sources: ICAEW, GOV.UK, AAT
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