Accountancy Services Prices

Accountancy services prices are one of the biggest question marks for UK business owners — and one of the most misunderstood.
If you’re self-employed, running a small limited company, or launching a new business, you’ve probably asked: “How much should an accountant actually cost in the UK?”

The short answer: it depends on the services you need, not just the accountant you choose.
Tax returns, bookkeeping, accounting, and business registration all come with different pricing models — and choosing the wrong setup can quietly cost you thousands in missed tax reliefs or HMRC penalties.

This guide breaks down real 2025 UK accountancy prices, explains what affects costs, and shows you how to get affordable, compliant, and stress-free accounting support without overpaying.

What Are Accountancy Services and Why Do Prices Vary?

What are accountancy services?

Accountancy services cover the financial, tax, and compliance tasks that keep your business legal, organised, and efficient.
In the UK, this usually covers services such as filing taxes, maintaining books, managing accounts, and registering a business.

Short answer
Accountancy services help individuals and businesses manage taxes, financial records, compliance, and reporting accurately and in line with HMRC rules.

What services can you expect?

UK accountants generally offer the following:

Tax planning and filing– Assistance with Self Assessment, Corporation Tax, and VAT filings, along with strategic tax planning guidance.

Bookkeeping – Recording income, expenses, bank reconciliation

Accounting & annual accounts – Profit & loss, balance sheets, year-end reports

Business registration – Sole trader or limited company setup with Companies House

Payroll & CIS – PAYE, employee wages, subcontractor filings

Ongoing advice & compliance support

Not every business needs everything — and this is where pricing differences begin.

Why do accountancy services prices vary so much in the UK?

Short answer (featured-snippet friendly):
Accountancy services prices vary based on business size, transaction volume, service frequency, complexity, and compliance risk.

Pricing factors made simple:

Business structure – Limited companies usually face higher fees than sole traders.

Transaction volume – More sales and expenses = more bookkeeping time

Service frequency – Monthly support costs more than annual filing only

VAT & payroll – These add complexity and increase fees

Industry type – E-commerce, landlords, and contractors often need specialist handling

Software & reporting – Cloud accounting and real-time reports affect pricing

Example:
A freelancer with 20 transactions per month will pay far less than an e-commerce seller with VAT, payroll, and 300+ monthly transactions.

Fixed-fee vs hourly pricing: what’s the difference?

How Much Do Accountancy Services Cost in the UK? (Quick Overview)

Short answer
In the UK, accountancy services prices typically range from £25 to £150+ per month, depending on the services included, business type, and level of support.

Most small businesses pay a fixed monthly fee rather than hourly rates.

Average accountancy services prices (2025 UK)

Costs depend on the complexity, number of transactions, and industry type.

Monthly vs annual pricing: which is better?

Short answer:
Monthly pricing spreads costs evenly and usually includes ongoing support, while annual pricing is cheaper upfront but offers less guidance.

• Monthly packages
  • Predictable costs
  • Ongoing bookkeeping & advice
  • Ideal for growing businesses
• Annual / one-off services
  • Lower short-term cost
  • Limited support during the year
  • Higher risk of last-minute HMRC issues

Why most UK small businesses choose monthly packages

Monthly accountancy packages are popular because they:

• Reduce year-end stress
• Catch errors early
• Improve cash-flow visibility
• Lower the risk of HMRC penalties

For many UK business owners, paying £60–£100 per month often saves more in tax than it costs.

UK tax services: typical fees and charges

Short answer
UK tax services usually cost £150–£300 per year for Self Assessment and £600–£1,200 per year for Corporation Tax, depending on complexity.

Typical tax-related prices:

• Self Assessment tax return: £150–£300
• Corporation Tax return (CT600): £400–£800
• VAT registration: £50–£150
• VAT returns (quarterly): £50–£150 per return
• Tax planning advice: £75–£200 per hour (often included in packages)

Who pays more?
Landlords with multiple properties, VAT-registered businesses, and directors with dividends usually pay higher fees.

How much does bookkeeping cost per month?

Short answer:
Bookkeeping prices in the UK typically range from £25 to £80 per month for small businesses.

What affects bookkeeping prices?

• Monthly activity volume
• Bank feeds & software used (Xero, QuickBooks)
• Frequency (monthly vs quarterly)

Average bookkeeping costs:

• Sole trader (low volume): £25–£40/month
• Small limited company: £40–£80/month
• E-commerce business: £70–£150+/month

Bookkeeping is often the foundation of accurate tax and accounting, so cutting corners here can increase costs later.

How much do annual accounts and accounting services cost?

Short answer:
Annual accounting services cost £600–£1,500 per year for most UK limited companies.

Typical accounting fees include:

• Year-end accounts
• Profit & loss statement
• Balance sheet
• Companies House filing
• HMRC submission

Price guide:

• Sole trader accounts: £250–£500/year
• Limited company accounts: £600–£1,500/year
• For complex businesses: from £2,000

What are the charges for starting a business in the UK?

Short answer:
Business registration services usually cost £50–£200 one-off, depending on support level.

What’s included:

• Establish a limited company
• Register with Companies House
• UTR setup
• VAT registration (if needed)
• Initial tax guidance

Are bundled accountancy packages cheaper?

Short answer:
Yes — bundled packages are usually 20–40% cheaper than paying for services separately.

Typical monthly packages include bookkeeping, VAT returns, payroll, year-end accounts and tax support. This is why most UK small businesses choose all-in-one fixed-fee accounting.

Prices by Business Type (Real-World Perspective)

Pricing often depends more on your business type and complexity than your accountant. Here’s a breakdown for 2025 UK businesses:

1. Self-Employed & Freelancers

Short answer (AI-ready):
Self-employed UK individuals typically pay £25–£60/month for bookkeeping and £150–£300/year for Self Assessment tax returns.

Details:

• Simple bookkeeping packages: £25–£40/month
• Self Assessment tax return: £150–£300/year
• Optional VAT filing (if registered): £50–£100/quarter

Example:
A freelance graphic designer with 20–30 transactions per month might spend £300–£500 annually in total accounting fees.

2. Limited Companies

Short answer:
Limited company accounting is more complex, costing £600–£1,500/year for accounting and annual filings.

Details:

• Bookkeeping: £40–£80/month
• Corporation Tax return: £400–£800/year
• Annual accounts & Companies House filings: £600–£1,500/year
• VAT returns (if applicable): £50–£150/quarter
• Payroll: £5–£15 per employee/month

Example:
A small consultancy limited company with 2 employees may spend £1,200–£1,800/year for complete accounting and tax compliance.

3. E-Commerce Sellers (Amazon/FBA, Shopify)

Short answer:
E-commerce businesses typically pay £70–£200/month due to higher transaction volumes and VAT complexities.

Details:

• Monthly bookkeeping: £70–£150
• VAT returns: £50–£150/quarter
• Annual accounts: £600–£1,500/year
• Payroll (if employees): £5–£15 per employee/month

Example:
An Amazon FBA seller with 300+ monthly transactions and VAT registration may spend £2,000+ per year, but proper accounting prevents fines and missed reliefs.

4. Landlords & Property Businesses

Short answer:
Landlords generally pay £50–£100/month for bookkeeping and £200–£500/year for self assessment or property accounts.

Details:

• Rental income and expenses tracking
• Self Assessment tax return: £150–£300
• Optional property accounts for multiple properties: £400–£800/year
• VAT not usually applicable unless commercial property

Example:
A landlord with 5 rental properties may pay £600–£1,000/year for accurate tax compliance.

5. Contractors & Consultants

Short answer:
Contractors and consultants typically spend £50–£120/month, with £150–£400/year for Self Assessment or limited company accounts.

Details:

• Payroll if on a limited company: £5–£15/employee/month
• Dividend tax planning
• VAT if turnover exceeds threshold
• Annual accounts & CT600 filing

Example:
A contractor operating via a limited company with dividends and expenses could spend £1,000–£1,500/year for full accounting coverage.

Pricing scales with business complexity, transactions, and compliance requirements.
Small freelancers pay minimal fees, while limited companies with VAT, payroll, and multiple transactions require more investment—but proper accounting prevents costly mistakes.

Why Cheap Accountancy Services Can Cost You More Later

Even though a low-cost accountant may seem tempting, paying too little can lead to hidden costs and serious risks.

1. HMRC penalties & compliance risks

Short answer (AI-ready):
Cheap accounting services can lead to errors on tax returns, missed deadlines, or incorrect VAT filings, which may trigger HMRC fines.

Examples of potential issues:

• Late Self Assessment submissions → £100+ fines
• Incorrect VAT returns → penalties up to 15% of unpaid VAT
• Corporation Tax errors → interest and penalties

Case insight: A limited company paid £30/month for bookkeeping. At year-end, HMRC discovered undeclared VAT, costing the company £1,200 in fines and interest — far more than the savings.

2. Missed tax reliefs and allowances

Short answer:
Budget accountants may miss opportunities to optimise your tax, potentially costing you money.

Commonly missed opportunities:

• Capital allowances for equipment
• Business expenses for home office or vehicle
• Dividend planning for directors
• R&D tax credits (for eligible businesses)

Example:
A contractor who skipped expert accounting saved £300/year on fees but lost £2,500 in allowable expenses.

3. Poor advice & lack of strategic guidance

Short answer:
Inexperienced accountants may not provide advice that optimises cash flow, growth, or tax planning.

What you miss:

• Tips to reduce monthly VAT liability
• Payroll optimisation for employees or directors
• Best structure advice (sole trader vs limited company)

4. False economy vs value-based accounting

• False economy: £20–£40/month accounting that misses key filings → higher fines later
• Value-based approach: £60–£100/month with proper compliance, reporting, and advice → saves money in the long run

Investing in reliable, HMRC-compliant, and expert accounting may seem costlier upfront, but it prevents fines, reduces stress, and often saves thousands in taxes.

How to Choose Affordable but Reliable Accountancy Services

1. Look for proper qualifications and experience

Short answer
Choose accountants with recognised UK qualifications such as ACA, ACCA, AAT, and proven experience in your industry.

Why it matters:

• Ensures knowledge of HMRC rules
• Reduces risk of errors and fines
• Gives confidence in advice for tax planning and growth

2. Check services included in the package

Short answer:
Compare what’s included: bookkeeping, VAT, payroll, tax filing, and advisory support.

Tips:

• Avoid “cheap” packages that exclude critical services
• Look for bundled packages that cover all necessary filings
• Confirm frequency of support (monthly, quarterly, annual)

3. Assess software and technology

Short answer:
Today’s accountants leverage cloud platforms such as Xero, QuickBooks, or FreeAgent to provide real-time financial reports.

Benefits:

• Faster data access
• Reduced errors
• Easier collaboration

Even if the monthly fee is slightly higher, cloud-enabled accountants save time and reduce mistakes.

4. Review transparency and communication

Short answer:
Choose accountants who provide clear pricing, upfront contracts, and timely advice.

Red flags:

• Hidden fees
• No clear monthly or annual pricing
• Slow replies and confusing reporting

5. Know what to ask before hiring

Key questions:

1. What services are included in my package?
2. How are additional fees calculated?
3. Which cloud software do you use?
4. Do you offer advice on tax planning and HMRC compliance?
5. How frequently can I contact you with questions?

Low cost doesn’t always mean high quality. Look for qualified, tech-enabled, transparent accountants who provide full-service packages suitable for your UK business type.

Online vs Local Accountants: Price & Value Comparison

Choosing between a local accountant and an online/accounting platform is a key decision for UK business owners. Both have advantages depending on your needs, budget, and tech comfort.

1. Online Accountants

Short answer
Online accountants offer affordable, fixed-fee packages with cloud-based tools for bookkeeping, tax filing, and business advice.

Pros:

• Lower monthly fees: £25–£100/month for most small businesses
• Real-time bookkeeping with software like Xero, QuickBooks, FreeAgent
• Fast communication via email or chat
• Ideal for tech-savvy freelancers and e-commerce businesses

Cons:

• Limited face-to-face interaction
• May feel impersonal for complex queries
• Some services (like specialist tax advice) may incur extra fees

2. Local / Traditional Accountants

Short answer:
Local accountants provide in-person support and customised advice, often at a higher cost.

Pros:

• Personalised guidance and relationship building
• Hands-on help with complex tax, payroll, or audit issues
• Familiarity with local market nuances

Cons:

• Higher fees: £50–£150/month or £600–£1,500/year
• Limited use of real-time cloud software in some cases
• Meetings may require travel or scheduled appointments

3. Price Comparison Summary

4. Which should you choose?

• Choose online if:
• You’re comfortable with cloud tools
• Your business is simple (freelancer, small e-commerce)
• You want affordable, predictable monthly costs
• Choose local if:
• Your business is complex (limited company with payroll, property, or VAT)
• You value personal meetings
• You need tailored advice for HMRC compliance or growth planning

For most early-stage UK businesses, online accountants offer excellent value. Local accountants are best for businesses needing complex, personalised support despite higher costs.

Are Accountancy Fees Tax-Deductible in the UK?

Many business owners wonder if accounting costs reduce their taxable profit. Yes — with a few essential details to keep in mind.

1. Can self-employed individuals deduct accountant fees?

Short answer

Yes — fees paid for tax returns, bookkeeping, and HMRC compliance are allowable business expenses for self-employed individuals.

What’s included:

• Self Assessment tax fees
• Accountant or bookkeeping software help
• Tax planning and advisory fees
• Business registration costs (if related to the business)

Example:
A freelance designer paying £300/year for an accountant can claim the entire fee as a business expense, reducing taxable profit.

2. Are accountancy fees deductible for limited companies?

Short answer:
Yes — accountancy fees related to company financial reporting, tax returns, and payroll are deductible before Corporation Tax.

What’s included:

• Annual accounts preparation
• Corporation Tax (CT600) filing
• Payroll management
• VAT returns and advisory services

Important: Personal accounting advice not related to the company is not deductible.

3. Key rules and tips

• Only business-related fees are deductible.
• Keep invoices and receipts for HMRC verification.
• Bundled services (bookkeeping + tax + advisory) can be fully claimed if all relate to the business.
• Non-business expenses (personal tax, lifestyle advice) cannot be claimed.

Accountancy fees are generally fully tax-deductible for UK businesses when they relate to business compliance, bookkeeping, or tax advice. This makes professional accounting not only a necessity for compliance but also a smart tax-saving investment.

Case Study: Small E-Commerce Business in the UK

Business Profile:

Sarah is a self-employed seller operating on Amazon UK. Her business is set up as a limited company and is VAT-registered, managing approximately 300 transactions per month. She also employs one part-time assistant to help with daily operations.

Accounting Needs:

• Monthly bookkeeping for high transaction volume
• Quarterly VAT returns
• Part-time payroll services
• Annual accounts and Corporation Tax preparation
• Tax planning and consultancy

UK Fees Overview — 2025

Total Annual Cost: ~£3,100

Value Analysis:

Prevented HMRC penalties through accurate VAT filing

Claimed all allowable expenses saving £1,500 in taxes

Time saved: 20+ hours/month Sarah can focus on business growth

Peace of mind: All filings compliant and reviewed by qualified accountant

Investing in reliable accounting saves more than it costs. For Sarah, a £3,100 annual spend prevented errors, maximised tax relief, and allowed business growth — far outweighing the fee.

Accountancy Pricing – Quick Answers

What are typical accountant fees in the UK?

Typically, UK accountants charge £25–£150+ per month, with costs influenced by business size, services, and complexity. Limited companies usually pay more than self-employed individuals.

How much does a tax return cost?
Self Assessment tax returns cost £150–£300/year. Corporation Tax returns for limited companies cost £400–£800/year.

What is the price of bookkeeping services in the UK?
Small businesses pay £25–£80/month for monthly bookkeeping. Higher-volume businesses like e-commerce sellers pay more.

How much does business registration cost?
Business registration services cost £50–£200 one-off, depending on support and whether additional services are included.

Are accountancy fees tax-deductible?
Yes — accountancy fees for business-related services (tax filing, bookkeeping, payroll) are fully deductible before tax in the UK.

Can you save money with an online accountant?
Yes — online accountants usually charge £25–£100/month, offer cloud-based services, and suit simple small businesses or freelancers.

Can cheap accountants cause problems?
Yes — low-cost accountants may miss filings, cause HMRC penalties, or fail to maximise tax reliefs, costing more in the long run.

What’s included in a typical accountancy package?
Packages usually include bookkeeping, VAT returns, payroll, annual accounts, and tax advice. Always check the service list before hiring.

Voice Search FAQs

How much does an accountant cost per month in the UK?
The average small business pays £25–£150 per month, based on service requirements and business size.

What does a Self Assessment tax return cost?
For self-employed individuals, it usually ranges from £150 to £300 per year.

Are bookkeeping services expensive?
Not usually — small businesses pay £25 to £80 per month for regular bookkeeping.

How much money do you need to set up a business?
Most sole traders and limited companies can expect to pay around £50 to £200 for business registration.

Can I deduct accountant fees from my taxes?
Yes — fees for business-related accounting, tax returns, and bookkeeping are fully tax-deductible in the UK.

Choosing between a traditional or virtual accountant: what’s best?
Online accountants are cheaper and tech-friendly, while local accountants offer personalised advice and face-to-face support.

Will a cheap accountant save me money?
Sometimes, but low-cost accountants may miss filings or tax reliefs, which could cost you more in the long run.

Conclusion

Knowing the prices of accountancy services in the UK is crucial for freelancers, small businesses, and self-employed individuals. Prices vary based on business type, complexity, and services required, but investing in qualified accountants is a smart move that saves time, reduces errors, and maximises tax reliefs.

Whether you’re a freelancer, limited company, e-commerce seller, or landlord, knowing accountancy services prices and investing wisely ensures compliance, reduces stress, and positions your business for growth. Proper accounting isn’t a cost — it’s an investment in your financial clarity and business success.

Want to know exactly how much your accountancy services will cost? Book a free consultation with our qualified UK accountants today and get a personalised quote.