- Limited company accountant fees in the UK typically range from £60 to £350 per month, with most active small companies paying £100 to £150 monthly for a full-service package.
- The biggest cost drivers are turnover, transaction volume, and whether you need payroll, VAT filing, and bookkeeping included in the package.
- Fixed-fee monthly packages have largely replaced hourly billing, making accountant costs more predictable and easier to compare across providers.
Limited company accountant cost in the UK typically sits between £60 and £350 per month, or £720 to £4,200 per year, depending on turnover, transactions, and what’s included. Most active small companies pay £100 to £150 a month for a full-service package covering year-end accounts, Corporation Tax, VAT, and payroll. Basic compliance-only packages start around £60 to £90 monthly, while premium advisory services can run beyond £500 a month.
Fixed monthly fees have largely replaced hourly billing, which makes limited company accounting easier to budget and compare. The bigger your turnover and transaction volume, the more you’ll pay.
What does a limited company accountant cost per month in the UK?
A limited company accountant costs between £60 and £350 per month in the UK, with most small companies paying £100 to £150 monthly for a standard package. The exact figure depends on what’s bundled in and how active your business is.
Here’s the typical monthly breakdown across the market:
Package level | Monthly cost | What’s usually included |
Basic compliance | £60 to £90 | Year-end accounts, Corporation Tax return, Confirmation Statement |
Standard small company | £100 to £150 | Above plus VAT filing, director’s Self Assessment, software access |
Full service | £150 to £250 | Above plus monthly bookkeeping, payroll for 1 to 5 employees |
Premium or advisory | £250 to £500+ | Above plus management accounts, tax planning, dedicated advisor |
Sleek’s accounting starts from £60 per month billed annually, which sits at the entry point of the market and includes bookkeeping, year-end accounts, Corporation Tax return, Confirmation Statement filing, VAT filing, and payroll for up to 5 employees.
What’s the annual cost of an accountant for a limited company?
Annual accountant fees for a UK limited company range from £720 to £5,000+, with most small businesses paying £1,200 to £2,500 a year. The bare minimum compliance package costs around £600 to £1,200, while full-service packages with payroll and VAT typically run £1,800 to £3,000.
Here’s how annual costs break down by company stage:
- Dormant or very small company with minimal activity: £300 to £700
- Simple trading company, low transactions, no VAT: £700 to £1,200
- Active trading company with VAT and basic payroll: £1,500 to £2,500
- Growing company with multiple employees and higher turnover: £2,500 to £5,000
- Established business requiring advisory and management accounts: £5,000 to £15,000+
Annual billing often comes with a discount of 10 to 20% compared to paying monthly, so it’s worth asking about both options before committing.
What affects the cost of a limited company accountant?
Six factors drive the price you’ll pay for limited company accounting in the UK. Understanding these helps you compare quotes accurately rather than just looking at headline figures.
Turnover
Most accountants band their fees by turnover. A company turning over less than £10,000 might pay £300 plus VAT for annual accounts only, while one turning over £300,000+ could pay £1,000+ plus VAT for the same service. Higher turnover usually means more complex accounts, more transactions to categorise, and more risk for the accountant to manage.
Transaction volume
The number of monthly transactions affects bookkeeping cost more than almost any other factor. A consultancy with 20 transactions a month is far cheaper to manage than an e-commerce business with 500. Many accountants now price bookkeeping in tiers based on transaction count rather than turnover.
Services included
Adding VAT returns, payroll, and bookkeeping pushes monthly fees from £60 to £90 up into the £150 to £250 range. Each additional service represents real work for your accountant. A useful starting point is to map out what you actually need before requesting quotes, so you’re comparing like for like.
Payroll size
Payroll is usually priced per employee per month. Most accountants charge £5 to £15 per employee monthly, with the first 1 to 5 employees often bundled into a base fee. Pension auto-enrolment compliance adds a small additional cost.
Software fees
Many accountants bundle Xero, QuickBooks, or FreeAgent into their monthly fee. Others charge it separately at £15 to £40 per month. If software is included, the headline price will look higher but you’re saving on a direct subscription.
Complexity and sector
Specialist sectors like property, e-commerce, or contracting often attract a premium of 20 to 50% because they require sector-specific knowledge. Property companies dealing with Section 24 rules or e-commerce businesses navigating VAT thresholds across multiple platforms cost more to service than straightforward consultancies.
Always ask for a written quote breaking down what's included and what costs extra. The cheapest headline price often becomes the most expensive once add-ons are factored in.
What’s included in a typical limited company accountant package?
A typical limited company accounting package includes year-end statutory accounts, Corporation Tax return (CT600), Confirmation Statement filing, and usually the director’s Self Assessment. Most modern packages now bundle software access and a dedicated accountant for support.
Standard services in a mid-range package:
- Year-end statutory accounts prepared and filed with Companies House
- Corporation Tax return (CT600) prepared and filed with HMRC
- Confirmation Statement filed annually
- Director’s Self Assessment tax return
- Quarterly VAT returns (if VAT registered)
- Monthly or quarterly bookkeeping
- Payroll processing for 1 to 5 employees
- Pension auto-enrolment compliance
- Cloud accounting software subscription
- Dedicated accountant or support team for queries
Services usually charged extra:
- Tax investigation insurance
- Management accounts or forecasting
- Additional employees on payroll beyond the bundled limit
- R&D tax credit claims
- Director loan account reviews (S455 tax territory)
- Property or capital gains tax advice
Monthly vs annual billing: which is better?
Monthly billing spreads the cost evenly and usually includes ongoing support, while annual billing often comes with a 10 to 20% discount but requires payment upfront. For most limited companies, monthly billing makes cash flow easier to manage even if the total cost is slightly higher.
Monthly billing advantages:
- Predictable cash flow with no large lump sum
- Support included throughout the year, not just at year-end
- Easier to switch if the relationship isn’t working
- Software fees absorbed into the monthly cost
Annual billing advantages:
- Typically 10 to 20% cheaper overall
- One transaction to manage in your books
- Often qualifies for early-bird or introductory discounts
If you’re a new company forming this year, monthly is usually the safer bet until you understand your cash flow patterns. Once you’re established, annual billing can save several hundred pounds a year.
Are cheap accountants worth it?
Cheap accountants can be worth it for simple, low-transaction limited companies, but they often become expensive once you need anything beyond basic compliance. The £35 to £50 per month accountants typically operate on volume and may charge significant extras for queries, advice, or anything outside the package.
Common hidden costs with budget accountants:
- Phone calls or meetings charged at £50 to £100 per hour
- Late submissions of documents triggering additional fees
- Software costs not included in the headline price
- Limited support during deadline periods
- Slow response times if you have a tax query
Mid-range accountants charging £100 to £150 a month usually include unlimited support, software, and a dedicated point of contact. For most active trading companies, this works out cheaper once you factor in real-world support needs. If you’re a contractor or one-person consultancy with predictable income and low transactions, a budget accountant can genuinely save you money. If you’re growing, hiring, or dealing with VAT, paying slightly more upfront usually pays back.
Fixed fees vs hourly billing
Most UK accountants now offer fixed monthly fees rather than hourly billing for limited company work. Fixed fees give you predictable costs and unlimited support, while hourly billing typically ranges from £100 to £300 per hour for ad-hoc advice.
Hourly billing still exists for:
- Specialist tax advice outside the package scope
- One-off projects like company restructuring
- Mergers, acquisitions, or share schemes
- Complex tax investigations or HMRC enquiries
For day-to-day accounting, fixed fees are almost universal now. If an accountant insists on hourly billing for routine compliance work, it’s usually a sign the package will end up more expensive than the alternatives.
How much does an accountant cost for a small limited company?
A small limited company with one or two directors, low transaction volume, and turnover under £85,000 typically pays £60 to £120 per month for a complete accounting package. That’s £720 to £1,440 a year for full compliance including accounts, Corporation Tax, and Self Assessment.
Real-world examples by company type:
Company type | Typical monthly cost | Annual total |
Dormant company | £15 to £30 | £180 to £360 |
Contractor, IR35-outside | £85 to £125 | £1,020 to £1,500 |
Sole director consultancy | £75 to £120 | £900 to £1,440 |
Small e-commerce, VAT registered | £150 to £250 | £1,800 to £3,000 |
3 to 5 employee service business | £200 to £350 | £2,400 to £4,200 |
The biggest jump usually comes when you cross the VAT threshold and need quarterly VAT returns added to your package. Plan for a 30 to 50% increase in accounting fees when this happens.
How Sleek helps with limited company accountant costs
Sleek’s limited company accounting starts at £60 per month billed annually, which includes everything most small companies need: bookkeeping, year-end accounts, Corporation Tax filing, Confirmation Statement, VAT returns, director’s Self Assessment, and payroll for up to 5 employees. Xero subscription is bundled into the Pro Plan, so there’s no separate software bill. Every package comes with a dedicated UK-based accountant, a 30-day money-back guarantee, and no hidden fees.
Disclaimer: The preceding information is not legal advice. This content is aimed to provide general guidance. For more formal or legal advice, contact Sleek directly.
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FAQs on limited company accountant cost
How much should I pay an accountant for a small limited company?
Most small limited companies should expect to pay £60 to £150 per month, or £720 to £1,800 annually. The exact figure depends on whether you’re VAT registered and how many transactions you process. A simple one-director consultancy with low transactions can find solid packages at the lower end, while an active business with VAT and payroll usually sits closer to £150 monthly.
Is it worth paying an accountant for a limited company?
Yes, for almost every active limited company. The time saved on compliance, the tax efficiencies identified, and the protection from late filing penalties usually outweigh the £1,000 to £2,000 annual cost. HMRC penalties for late Corporation Tax or Companies House filings can hit £1,500 quickly, which often exceeds a full year of accounting fees on their own.
Can I do my own limited company accounts to save money?
Yes, but it’s rarely worth it once your company is trading actively. Filing statutory accounts, the CT600, and Self Assessment correctly takes 15 to 30 hours a year and requires solid knowledge of FRS 105 or FRS 102. Most directors who try it switch to an accountant within two years, usually after a Companies House or HMRC fine or a missed tax saving.
Do accountants charge extra for VAT returns?
Usually yes, unless VAT is bundled into your monthly package. Standalone VAT returns typically cost £30 to £75 per quarter, or £120 to £300 a year. Most modern fixed-fee packages above £100 per month include VAT filing, so it’s worth checking before signing up. Specialist VAT schemes like the flat rate or margin scheme sometimes attract a small premium.
How much does an accountant charge for year-end accounts only?
A standalone year-end accounts and Corporation Tax filing typically costs £400 to £1,200 for a small limited company. The price depends on turnover, bookkeeping quality, and whether records arrive organised or as a shoebox of receipts. Companies submitting clean Xero or QuickBooks data sit at the lower end, while reconstruction work from spreadsheets pushes the fee higher.
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Are accountant fees tax deductible for a limited company?
Yes, accountancy fees are an allowable business expense for Corporation Tax purposes. This means a £1,500 annual accounting bill reduces your Corporation Tax by around £375 at the 25% main rate, or £285 at the 19% small profits rate. Personal tax return fees for directors are sometimes treated as a benefit in kind, so check what’s covered before claiming.
How do I switch limited company accountants without losing data?
The process takes 2 to 4 weeks and your new accountant handles most of it. They’ll send a professional clearance letter to your old accountant, request handover of records, and transfer your cloud accounting subscription. You don’t need to settle outstanding work first, although unpaid invoices can slow the handover. Most directors switch mid-year rather than waiting for year-end.
