How Much Do Accountants Charge For Vat Returns

If you’re asking how much do accountants charge for VAT returns in the UK, you’re certainly not the only one. For many small business owners, VAT feels confusing, time-consuming, and risky—especially with HMRC penalties for mistakes.

In the UK, accountants typically charge between £50 and £300 per VAT return, depending on your business size, transaction volume, and how organised your records are. Some businesses pay less through monthly packages, while others pay more for complex VAT schemes or messy bookkeeping.

This guide explains exact VAT return costs, what affects accountant fees, and how to avoid overpaying—so you can stay compliant, save time, and make confident decisions without financial guesswork.

In The UK, How Much Do Accountants Charge for VAT Returns?

Concise Answer:
In the UK, accountants usually charge £50 to £300 per VAT return. Simple VAT returns for sole traders sit at the lower end, while limited companies, e-commerce sellers, or businesses with complex VAT schemes pay more.

Most small businesses reduce costs by using monthly accounting packages, where VAT returns are included rather than charged separately.

What Is a VAT Return and Why Do Businesses Pay an Accountant?

An Easy Explanation of VAT Returns

A VAT return shows HMRC how much VAT a business has charged, paid, and whether any VAT is owed or reclaimable. It shows how much VAT has been charged to customers on sales, how much VAT has been paid on eligible business expenses, and the difference between the two figures.

The calculation determines whether the business owes VAT to HMRC or is eligible to reclaim VAT. Under the Making Tax Digital (MTD) framework, most VAT-registered UK businesses are required to submit VAT returns on a quarterly basis.

Why Businesses Use Accountants for VAT Filing

Although modern accounting software can calculate VAT figures, VAT compliance involves far more than simple calculations. It demands in-depth knowledge of regulations, submission deadlines, and HMRC compliance standards. This is why many businesses prefer to use an accountant for VAT returns.

VAT Rules Are Complex and Frequently Updated

VAT legislation changes frequently, often with little notice, and different goods and services fall under standard, reduced, zero-rated, or exempt VAT categories. An accountant ensures that the correct VAT treatment is applied in every case, helping businesses avoid costly errors that can result from misapplying the rules.

Reduced Risk of HMRC Penalties and Investigations

Errors on VAT returns can lead to HMRC penalties, interest charges, or even audits, and late submissions or incorrect figures further increase compliance risks. Accountants carefully review all calculations before submission, providing professional oversight that significantly reduces the likelihood of HMRC scrutiny.

Maximising Legitimate VAT Reclaims

Many business owners overlook reclaimable VAT on allowable expenses. Accountants know which purchases qualify for VAT recovery, helping businesses improve cash flow by reclaiming the maximum legally allowed amount. They also ensure proper documentation is maintained to support all VAT claims.

Expert Handling of Different VAT Schemes

VAT schemes, including Flat Rate, Cash Accounting, Annual Accounting, and Margin Schemes, each have their own unique rules. Using the wrong scheme can lead to overpaying VAT or non-compliance. Accountants evaluate which scheme is most beneficial for a business and provide ongoing advice to ensure it remains suitable as the business grows.

Enhanced Efficiency and Time Management

VAT return preparation can be a significant drain on a business owner’s time. Accountants ensure accurate calculations, thorough checks, and timely submissions, enabling owners to focus on business operations and expansion. Spending less time on compliance tasks also helps improve overall productivity.

Confidence, Compliance, and Peace of Mind

Knowing that VAT returns are handled professionally helps reduce stress for business owners. It gives them confidence that their VAT obligations are fully compliant, while accountants provide support if HMRC raises queries or requests evidence. This reassurance enables owners to focus on strategic decision-making rather than concerns about VAT inaccuracies.

A VAT return is a report sent to HMRC that shows the VAT a business has charged on sales, paid on expenses, and whether it needs to pay or reclaim VAT. Most UK businesses submit VAT returns quarterly under Making Tax Digital rules. Businesses engage accountants due to the complexity of VAT regulations and the risk of penalties for non-compliance. An accountant ensures accuracy, maximises VAT reclaims, manages VAT schemes correctly, and provides peace of mind.

UK Accountant Fees for Preparing VAT Returns: What to Expect

Average VAT Return Fees (UK Price Guide)

These prices assume reasonably organised records and standard VAT schemes.

Monthly VAT Packages vs One-Off VAT Return Fees

Why monthly packages often cost less overall:

• Records are reviewed regularly
• Errors are spotted early
• Less time is spent fixing issues at quarter-end

If you submit VAT returns every quarter, a monthly package is usually better value and less stressful.

What Affects the Cost of VAT Returns?

Number of Transactions

More invoices and expenses mean more work. A business with 30 transactions pays less than one with 500.

How VAT Scheme Used Affects VAT Return Costs

The cost of VAT returns can vary depending on the VAT scheme your business follows. Each scheme has unique requirements and complexity:

• Standard VAT – straightforward and easy to process
• Flat Rate Scheme – requires scheme-specific checks to ensure correct calculations
• Cash Accounting – timing of payments and receipts affects VAT reporting
• Making Tax Digital VAT – requires meeting HMRC’s digital submission standards

Businesses on more complex schemes may pay slightly higher fees because accountants need extra time to ensure accuracy and compliance.

Quality of Your Bookkeeping

The accuracy and organisation of your bookkeeping directly affects the cost of VAT returns.

• Clean, up-to-date records make it faster for accountants to prepare VAT returns, keeping fees lower.
• Messy spreadsheets or missing receipts require more time to sort, which increases costs.

Well-maintained bookkeeping can reduce VAT return costs by 20–40%, making it a simple way to save money each quarter.

Software for Accounting

Cloud accounting tools like Xero, QuickBooks, or FreeAgent help businesses prepare VAT returns quickly and easily.

• Automated calculations and digital record-keeping reduce manual work.
• This typically results in lower VAT return fees compared to spreadsheet-based records.

Modern accounting software also ensures MTD compliance, reducing the risk of HMRC penalties while saving time.

Does Managing VAT Returns Independently Save Money?

Initially, managing VAT returns independently may appear to be the most cost-efficient solution. Accounting software for DIY VAT typically costs between £15 and £30 per month, which appears affordable for small businesses.

However, there are hidden risks and costs to consider:

• Risk of Errors and Penalties: Mistakes in VAT calculations or submissions can lead to HMRC penalties and interest, which can quickly outweigh the savings of DIY software.
• Missed VAT Reclaims: Incorrectly claiming VAT on expenses can result in lost refunds, directly affecting cash flow.
• Time and Stress: Dealing with HMRC queries or audits without professional guidance can be stressful and take time away from running the business.

For many businesses, investing in an accountant is often cheaper in the long run. Expert assistance guarantees accurate VAT returns, optimises recoverable VAT, and provides business owners with peace of mind, allowing them to concentrate on strategic growth rather than compliance matters.

Are VAT Accountant Fees Worth the Cost? (Value vs Price)

In most cases, UK small businesses can answer affirmatively. While a VAT return might cost between £80 and £200, the value often exceeds the fee. Accountants help prevent costly VAT errors and HMRC penalties, identify reclaimable VAT that you might otherwise miss, save hours of administrative work each quarter, and provide reassurance during HMRC checks.

For growing businesses, VAT support is less about the cost and more about gaining financial control, reducing risk, and ensuring compliance.

When Should You Hire a VAT Accountant for VAT Returns?

Hiring a VAT accountant for VAT returns can save time, reduce errors, and ensure HMRC compliance. Consider professional support in the following situations:

1. Approaching the VAT Threshold – If your turnover nears or exceeds the £90,000 VAT threshold, VAT reporting becomes mandatory and more complex.
2. Quarterly VAT Filing – Businesses registered for VAT and submitting quarterly returns benefit from expert oversight to avoid mistakes.
3. Increase in Transactions – A surge in sales, purchases, or invoices increases the workload and the chance of errors.
4. Switching VAT Schemes – Changing from standard VAT to Flat Rate or other schemes requires careful calculation and compliance.
5. HMRC Queries or Corrections – If HMRC contacts you regarding VAT, an accountant can handle the response accurately.
6. Stress or Filing Delays – When VAT preparation consumes too much time or causes stress, professional support ensures deadlines are met.

At this stage, hiring a VAT accountant often pays for itself by preventing penalties, reclaiming VAT efficiently, and providing peace of mind.

You should hire a VAT accountant for VAT returns if your turnover nears the £90,000 VAT threshold, you file quarterly, or your business transactions increase significantly. Other triggers include switching VAT schemes, receiving HMRC queries, or struggling with VAT filing stress. Professional help at this stage saves time, prevents errors, ensures compliance, and often pays for itself.

How to Legally Reduce VAT Accountant Fees

You don’t have to overpay for professional VAT support. Many UK businesses lower their accountant fees by taking proactive steps that make the accountant’s work faster, easier, and more efficient. Here’s how:

Keep Records Updated Regularly:

Instead of leaving everything until the end of the quarter, update your financial records weekly. This reduces last-minute work and helps maintain accuracy.

Use Cloud Accounting Software:

Platforms like Xero, QuickBooks, or FreeAgent simplify VAT calculations and ensure compliance with Making Tax Digital (MTD) rules, saving time for both you and your accountant.

Digitise Receipts and Reconcile Monthly:

Upload receipts digitally and reconcile bank transactions each month. This ensures records are accurate, easy to access, and ready for the accountant to process.

Bundle Services: Combining VAT return preparation with regular bookkeeping or accounting services can often reduce overall costs and create a more streamlined workflow.

Save on Fees While Minimising Risk:

Implementing these practices can help small businesses reduce VAT return fees by 20–40%, while also lowering the risk of errors, missed VAT claims, and potential HMRC penalties.

By being organised and leveraging technology, businesses can legally reduce accountant fees while improving financial control and compliance.

Services Provided Under VAT Return Fees

When you hire a VAT accountant in the UK, most offer a comprehensive range of services to ensure your VAT filings are accurate, compliant, and submitted on time. Key services typically included are:

VAT Calculation and Reconciliation: Accountants calculate the VAT owed or reclaimable, ensuring all figures are correct and reconciled with your accounts.

Review of Sales and Purchase VAT: They check both output VAT (on sales) and input VAT (on purchases) to identify any discrepancies or missed claims.

VAT Return Submission: Accountants submit your VAT return to HMRC in line with Making Tax Digital (MTD) requirements, ensuring compliance with all current regulations.

Error Checking: Before submission, accountants review the return for errors, reducing the risk of penalties, interest, or HMRC queries.

Basic VAT Advice and Support: Most accountants can answer general VAT queries, providing reassurance and guidance on day-to-day VAT matters.

It’s important to clarify exactly what is included in your VAT return fees, as some lower-cost packages may exclude essential services or advisory support. Ensuring transparency helps avoid unexpected costs and ensures your business stays fully compliant while maximising VAT recovery.

Hidden VAT Costs to Watch Out For

While VAT return fees may seem straightforward, some costs are not always immediately obvious. Businesses should note potential supplementary charges, which may include:

Correcting Past VAT Errors: Fixing mistakes from previous periods can incur extra fees, especially if detailed reconciliations are required.

Amending Submitted VAT Returns: Changes or corrections to already-submitted returns often come with additional accounting charges.

Late Filing Penalties: HMRC penalties for late submissions or payments can add unexpected costs.

Responding to HMRC Investigations: If HMRC opens an enquiry, accountants may charge extra for handling correspondence, providing evidence, or attending meetings.

Additional VAT Advice: Guidance beyond standard return preparation, such as complex transactions or VAT planning, may also incur fees.

Getting clear, upfront pricing from your accountant helps avoid surprises and ensures your business can budget effectively while remaining fully compliant with VAT regulations.

Real Example: UK Small Business VAT Cost Scenario

Consider a UK-based e-commerce seller handling around 120 transactions each month who recently registered for VAT.

• Using DIY VAT software, the business would spend roughly £25 per month.
• Opting for a monthly accountant package, which included VAT preparation and submission, cost £110 per month.

The outcome was significant: the accountant identified reclaimable VAT on shipping and software costs, saving the business £1,400 annually—far more than the accountant’s fee. In addition, professional support helped the business avoid late filing penalties during peak sales periods, giving the owner peace of mind and more time to focus on growth.

Fast, High-Precision Solutions

How much will a UK accountant charge for your VAT return?
Most UK accountants charge £50–£300 per VAT return, depending on business size, transaction volume, and VAT complexity.

How can I file VAT returns for the lowest cost?
Using cloud accounting software with clean records and a monthly accountant package is usually the most cost-effective option.

Do VAT accountant fees include HMRC submission?
Yes, reputable UK accountants normally include MTD-compliant HMRC submission within their VAT return fee.

Is a VAT accountant worth it for small businesses?
Yes. For most small businesses, accountants reduce errors, reclaim more VAT, and prevent HMRC penalties—saving money long term.

Voice Search: FAQ Section

What is the cost of VAT return services by accountants in the UK?
Most accountants charge between £50 and £300 per VAT return, depending on how complex your business and records are.

Is it possible to submit a VAT return without using an accountant?

Yes, but many small business owners use accountants to avoid mistakes and HMRC penalties.

Is VAT return cost monthly or quarterly?
VAT is usually filed quarterly, but many accountants spread the cost monthly in a fixed package.

Can an accountant submit your VAT return to HMRC?
Yes, accountants submit VAT returns digitally under Making Tax Digital rules.

How can I lower my VAT accountant fees?
Keep your records tidy, use cloud software, and bundle VAT with bookkeeping services.

Final Thoughts

So, how much do accountants charge for VAT returns in the UK?
For most small businesses, the cost ranges from £50 to £300 per VAT return, depending on complexity, records, and VAT schemes.

While DIY options exist, hiring an accountant often saves money in the long run by preventing errors, reclaiming VAT, and reducing HMRC risk. With the right setup and support, VAT becomes manageable, predictable, and stress-free.

CTA: Get Affordable, Stress-Free VAT Support

Speak to a VAT accountant today and get clarity—before your next VAT deadline.