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How much does an accountant cost for a limited company?

7 mins read
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Toby Denwood
Tax Manager
Toby is an experienced tax advisor who leads the UK tax team at Sleek, helping owner managed businesses stay compliant, save time, ensure efficiency, and access valuable tax incentives.
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Key takeaways
  • Most small limited companies pay £60 to £250+ a month for accountancy.
  • A quote's price is driven mainly by turnover, VAT and payroll.
  • VAT returns, payroll and bookkeeping are usually billed on top of accounts.
In this article

A limited company accountant cost usually runs between £60 and £250+ a month, and the figure moves mainly with your transaction volume, VAT registration and payroll [market range, multiple UK sources, 2026]. You can get a fee matched to your actual filings and volume rather than a generic figure through accounting services built around your company. A simple single-director company with no VAT registration and few transactions sits at the bottom of that range, while a VAT-registered company running payroll for several people sits well above it.

A typical monthly fee covers your year-end accounts, the corporation tax return, the confirmation statement, one director’s self assessment and accounting software. VAT returns, payroll, bookkeeping and catch-up work on late accounts are normally charged separately. That split is the main reason two quotes for the same company can differ so much.

Want a fee based on your real transaction volume and filings, not a generic number?

Want a fee based on your actual filings?

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Want a fee based on your actual filings?

What is normally included in the fee?

Most monthly packages for a limited company bundle the statutory work every company has to do, so you can budget for it as one predictable number. When you read a quote, this is the core you are paying for before any extras get added.

A standard limited company accounting fee usually includes:

  • Year-end statutory accounts filed with Companies House.
  • The corporation tax return (CT600) filed with HMRC.
  • The annual confirmation statement.
  • One or two director self assessment returns.
  • Accounting software such as Xero, and routine email or phone queries.

Watch how the confirmation statement is described. The £50 digital filing fee is a Companies House charge, not your accountant’s fee, so a quote that folds in “the £50 confirmation statement” is passing through a government cost rather than earning it [GOV.UK, Companies House fees, 1 February 2026]. Knowing that lets you tell a service fee from a pass-through cost when you compare firms.

What usually costs extra?

The headline fee rarely covers everything, and the extras are where two quotes start to diverge. None of these are hidden by default, but you only spot them if you know to ask.

Work that is usually billed on top of the core accounts fee includes:

  • VAT returns, once you are registered and filing quarterly.
  • Payroll, priced per employee per month.
  • Bookkeeping, if you would rather not do it yourself. Our guide on whether you need a bookkeeper too explains where the line sits.
  • Catch-up work on late or messy accounts.
  • R&D claims and one-off advisory work.

Your personal tax is a common grey area. A director’s own self assessment fees may or may not be inside the company package, so check whether one, both or neither director’s return is covered before you sign.

What makes the price go up?

Two companies with the same job title on the invoice can pay very different fees, because the work behind the fee varies. A handful of concrete factors decide which end of the range you land in.

The main drivers of a limited company accountant cost are:

  • Transaction volume. More invoices and bank lines mean more bookkeeping time, which is the single biggest variable.
  • VAT registration. Quarterly returns add regular work across the year.
  • Payroll headcount. Each employee adds a monthly run and reporting.
  • Number of directors. More director self assessment returns to prepare.
  • Whether your books are up to date. Behind books mean catch-up work before anything else can happen.
  • Industry. Some sectors carry extra reporting, such as the Construction Industry Scheme.

This is the part most cost pages skip. A range on its own tells you nothing about why your quote differs from a friend’s, but the drivers above do, and they are the questions a good accountant will ask before quoting.

Want statutory work covered with no surprise charges?

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Want statutory work covered with no surprise charges?

Monthly or annual: how do accountants bill?

Most modern firms have moved to a fixed monthly fee rather than a single annual invoice. It spreads the cost evenly and means you are not hit with one large bill after year-end.

A fixed monthly fee also removes the anxiety of a clock running every time you email a question, so you actually pick up the phone when something matters. A one-off annual accounts job still has its place if that is genuinely all you need, and it tends to sit around £500 to £1,500 for basic year-end work [market range, multiple UK sources, 2026].

Fixed fee or hourly: which is safer?

For ongoing compliance, a fixed fee is almost always the better structure because you know the number and can budget for it. Hourly billing for routine work creates the wrong incentive, since you end up rationing contact with your own accountant to keep the bill down.

Hourly rates for a qualified accountant sit at roughly £125 to £300 an hour, which is fine for a defined one-off piece of work but hard to predict across a year [market range, multiple UK sources, 2026]. If a firm quotes hourly for standard annual compliance, ask them to convert it to a fixed scope so you can compare like for like.

What does a cheap quote usually leave out?

A low headline fee is not a problem in itself, as long as you know what sits outside it. The gap between a £40 quote and a £150 quote is usually scope, not a discount on the same work.

Below roughly £60 a month you are typically buying compliance only, with the bookkeeping left to you and limited access to a qualified person to talk things through [market range, multiple UK sources, 2026]. That can be exactly right for a dormant or very simple company. It is the wrong fit if you have VAT, payroll or questions you want answered the same day. If your current firm is the reason you are shopping around, our guide on how to change accountants walks through the switch.

What should you ask before you sign?

The fastest way to compare quotes properly is to make every firm answer the same short list, so you are reading scope rather than being dazzled by a headline number. Write down what you need covered before you ask for a single quote.

Before you appoint an accountant for your limited company, ask each firm:

  • Exactly which filings are inside the monthly fee?
  • Is bookkeeping included, or priced separately?
  • Are VAT returns and payroll extra, and at what rate?
  • Which director self assessment returns are covered?
  • What triggers an additional charge during the year?
  • How quickly do you reply to a query?

A firm that answers these clearly is quoting on scope. One that stays vague is the one most likely to surprise you later.

Is it worth the cost for a small limited company?

For most trading limited companies the answer is yes, but it is worth answering properly rather than assuming. The value is not just the filing itself, it is having a qualified person accountable for numbers you would otherwise be second-guessing.

Doing it yourself with software is cheaper on paper, and it can work for a dormant or very simple company. Once you have VAT, payroll or a director’s tax to think about, the time and risk usually outweigh the saving, which is why cost intent behaves the way it does. If you have not incorporated yet, what a sole trader accountant costs is a different question with its own answer.

How Sleek helps with limited company accountant cost

Sleek pairs a qualified human accountant with AI that does the heavy lifting and shows its working, so every filing is reviewed by a real person and you can see exactly what was done. Statutory work is covered, queries get a same-day reply, and you are quoted on your actual volume and filings rather than a generic figure. For the fuller picture beyond the accountancy fee itself, see the wider cost of running a limited company.

Ready to see what your company should pay?

FAQs on limited company accountant cost

How much does an accountant cost per month in the UK?

Most small UK limited companies pay £60 to £250+ a month for accountancy on a fixed monthly package in 2026 [market range, multiple UK sources, 2026]. A single-director company with no VAT sits near the bottom, and a VAT-registered company running payroll sits at the top. The fee usually bundles your accounts, corporation tax return, confirmation statement and routine queries.

Do you offer any flexibility or is it only annual packages?

Most firms now offer a fixed monthly plan rather than a single annual fee, which spreads the cost and includes ongoing support. A one-off annual accounts job is still available if that is all you need. Ask each firm which structure they offer and what moves between the two.

Do the fees include the company setup or not?

Company formation is normally a separate one-off cost from your ongoing accounting fee. Some firms bundle incorporation into a first-year package, but you should confirm it rather than assume. The Companies House digital incorporation fee itself is £100 from 1 February 2026 [GOV.UK, Companies House fees, 1 February 2026].

Is my accountant's fee a claimable expense?

Yes. Accountancy fees for running the company are an allowable business expense and reduce your corporation tax bill. Personal tax work that is not for the business can be treated differently, so keep the two separate on the invoice.

Do I pay more if my bookkeeping is behind?

Usually yes. Catch-up work on late or messy books is priced on top of the standard fee because it takes extra time before the accounts can be prepared. The further behind you are, the larger that one-off charge tends to be, so it is cheaper to keep books current.

Why do two quotes for the same company differ so much?

Almost always because they cover different scope, not because one firm is overcharging. One quote might include bookkeeping, VAT and payroll while the other is accounts and corporation tax only. Compare what each fee includes line by line before you compare the numbers.

Is an accountant cheaper than doing it myself with software?

Software alone is cheaper in pounds, and it can be enough for a dormant or very simple company. Once you add VAT, payroll or a director’s tax return, the time cost and the risk of an error usually outweigh the saving. If you are working out what falls inside a fee, our VAT, bookkeeping and accounting questions cover the common ones.