- A fixed fee suits most limited companies because routine work repeats every year
- Hourly or per-task billing can cost less for one-off or very light work
- Get the scope, exclusions and extra-work rate in writing before you sign
A fixed fee accountant charges a set amount for an agreed scope of work, while an hourly accountant bills for the time they spend. For most small businesses, a fixed monthly fee from a limited company accountant is the safer choice, because the routine work repeats every year. Hourly billing suits one-off jobs, and this guide shows when.
Fixed fee accountant vs hourly: which is cheaper?
For ongoing work, a fixed fee usually costs less over a year, and it never costs more than you agreed. For a single small job, hourly can be cheaper because you only pay for the time used.
The fixed fee accountant vs hourly question comes down to how often you need help. If you need your accountant every month, a set fee wins. If you need them twice a year, it may not.
Why hourly bills creep up
Every call, email and quick question goes on the clock. Directors start rationing their questions to keep the bill down, and that’s usually when mistakes slip through.
You also can’t budget an hourly bill in advance. You find out what the year cost when the final invoice lands.
Why a fixed fee can look dearer on paper
A fixed quote often looks higher than an hourly estimate. That’s because it prices in the whole year, including the questions you haven’t asked yet.
Pricing is the concern raised most often in Sleek’s UK sales calls, and the usual question is what a quoted fee actually includes. For typical figures, see our guide to limited company accountant cost.
How do the main accountant pricing models work?
There are four common accountant pricing models in the UK. Each one bills differently and suits a different kind of business.
| Model | How you are billed | Predictability | Best for | Watch out for |
|---|---|---|---|---|
| Fixed monthly | A set monthly accountant fee for an agreed scope | High | Trading companies with regular bookkeeping, VAT or payroll | Work that falls outside the scope |
| Fixed annual | One set fee for the year, often paid upfront | High | Simple companies that only need year-end work | Paying upfront and the refund terms if you leave |
| Hourly | Time spent, multiplied by the rate of whoever does the work | Low | One-off advice or a short project | Small questions adding up across the year |
| Per-task | A set price for each job, such as one set of accounts | Medium | A single filing or a catch-up job | Paying again every time a new job comes up |
A fixed price accountant agrees the scope first and then quotes once. The monthly accountant fee spreads the cost evenly, which helps cash flow when you’re growing.
Hourly billing depends on who picks up the work. The accountant hourly rate UK firms charge usually rises with seniority, so a partner’s hour costs more than a junior’s.
When does hourly billing make sense?
Hourly billing isn’t always the worse deal. It makes sense when the work is small, rare or genuinely unpredictable.
When hourly or per-task pricing wins
- You need one piece of advice. A single question about a share issue or selling the business is cheaper by the hour than a year-long package.
- Your company barely trades. A dormant or near-dormant company may only need its accounts filed, which suits a per-task price.
- You only need a review. If you keep your own books and want them checked once, hourly keeps the cost tied to the work.
- You have a short catch-up job. Bringing old records up to date is often quoted per task, then moved to a fixed fee.
If you’re self-employed with simple records, per-task pricing is common too. Our guide to sole trader accounting costs covers that side.
When a fixed fee wins
- You file VAT returns. Quarterly returns mean regular work, which is cheaper inside a set fee.
- You run payroll. Monthly payroll and pension submissions add steady hours you’d otherwise pay for one by one.
- You ask questions often. Growing companies need quick answers on hiring, dividends and spending, and a set fee lets you ask freely.
- You want to budget. A known monthly figure is easier to plan around than a variable invoice.
What should a fixed fee include?
A fixed fee is only as good as its scope. For a limited company, the core statutory work should sit inside it:
- Annual accounts filed with Companies House, due 9 months after your financial year ends.
- Your Company Tax Return (CT600) filed with HMRC, due 12 months after your accounting period ends.
- Bookkeeping, with how often it’s done written down.
- VAT returns, if you’re VAT registered.
- Payroll, if you have staff or pay yourself a salary.
- Your director’s Self Assessment, if you take dividends.
- Accounting software, so you’re not paying for it separately.
- Ongoing support, with a named accountant and a stated reply time.
If a quote from a fixed price accountant leaves any of these out, ask why. Some firms keep the headline price low by moving everyday work into extras.
What should you ask before you sign?
A few direct questions will tell you whether a quote is truly fixed. Ask each one and get the answers in your engagement letter:
- What exactly does the fee cover? Ask for the scope in writing, line by line.
- Is setup included? Onboarding, handover from your old firm and any catch-up work can be charged separately.
- Who’s my accountant? A named, qualified person is different from a shared inbox.
- How quickly do you reply? Get a stated reply time, not a promise to “get back to you”.
- What’s your rate for out-of-scope work? Ask for the accountant hourly rate UK staff will bill at, and whether they quote before starting.
- What’s the notice period? Check how you leave and what you’ll owe if you do.
If you’re weighing up a firm near you against an online service, our guide to online vs local accountant sets out the trade-offs. If you’re moving from an existing firm, read how to change accountants first.
How Sleek helps with fixed fee accounting
Sleek works as a fixed fee accountant for UK limited companies. You agree the scope upfront, get a named, qualified accountant and get replies the same day.
AI handles the routine bookkeeping, your accountant checks it, and you can see what was done and what was approved. Our in-house SleekBooks software comes with every plan, with Xero available as an add-on.
Our accounting services cover bookkeeping, year-end accounts and corporation tax in one relationship. If you only need one job done this year, an hourly or per-task accountant may suit you better, and we’ll tell you so.
Work with a fixed fee accountant who replies the same day
FAQs on fixed fee accountant vs hourly accountant
Why do accountants charge so differently for the same thing?
Two quotes for “the same thing” rarely cover the same scope. One may include bookkeeping, payroll and unlimited questions, while another covers year-end accounts only. The pricing model matters too, since an hourly estimate shows only part of the year’s cost.
What is not covered by a fixed fee?
Typical exclusions are HMRC enquiries, catch-up work on earlier years, R&D tax relief claims and one-off projects such as restructuring your shares. Some firms also exclude payroll or VAT unless you add them. Your engagement letter should list every exclusion, so you know in advance what triggers an extra charge.
Can I switch to a fixed fee accountant mid-year?
Yes. You can move at any point in your financial year, and your new accountant picks up from your last filed accounts. Expect a one-off charge if your books for the year so far need bringing up to date. Our guide on how to change accountants covers the handover.
Will my fixed fee go up as my business grows?
It can. Firms usually review fixed fees when your turnover, transaction volume or headcount moves into a new band. Ask which triggers apply before you sign, so a review doesn’t come as a surprise.
Do I pay VAT on top of my accountant's fee?
Usually, yes. Accountancy services are charged at the standard rate of VAT, and many firms quote fees before VAT. If your company is VAT registered, it can normally reclaim that VAT on its VAT return.
Can my company claim its accountant's fees as an expense?
Yes, for the company’s own work. HMRC allows normal recurring accountancy costs as a business deduction, which covers preparing the accounts and the Company Tax Return. Fees for your personal tax return are a different matter, so check with your accountant before putting them through the company.
Is the cheapest fixed fee the best value?
Not always. A low fee often means a smaller scope, slower replies or no named accountant, and one missed deadline can cost more than you saved. Compare what each quote covers and how fast the firm responds, not just the monthly figure.
