Find out about normal accountant fees for businesses and the self-employed in the UK, what affects the price, and how to reduce the cost, all in an easy-to-read format for clients.
1. Understanding the Different Fee Models
Accountants typically charge in one of three ways:
- Hourly rates – Ideal for ad hoc or specialist tasks
- Fixed fees – Common for routine services like self‑assessment returns or year‑end accounts
- Monthly packages – Best value for ongoing compliance, advice, and payroll support
Offering multiple billing options gives clients flexibility and transparency.
2. Typical Hourly Rates
- Basic accounting services: £25–£60/hour
- Specialist advice (e.g. tax planning, growth strategy): up to £125–£150/hour
- Operational bookkeeping: £20–£50/hour depending on complexity
3. Common Fixed Service Fees
Self-assessment tax returns (sole trader/freelancer):
- £150–£300 for straightforward returns
- Up to £350 for complex cases or multiple income streams
Company year-end accounts (Ltd companies):
- £500–£800/year for small firms
- £1,200–£1,500/year for businesses with VAT, payroll, inventory
Payroll services:
- £150–£250/month depending on number of employees
Ongoing small-business package:
- From about £500/year for sole traders to £7,000+ for larger firms with full services
4. Monthly Retainers & Bundled Programs
- For simplified businesses: £60–£150/month
- For small growing firms: £300–£500/month including VAT returns, year‑end accounts, and advisory support
- Larger firms or advisory‑focused retainers can run £750–£5,000/month
5. Annual Cost Benchmarks by Business Type
| Business Type | Monthly or Annual Fee Estimate |
| Sole Trader Freelancer | £100–£300/year (self-assessment only) |
| Small Ltd Company | £500–£1,500/year (accounts, tax, VAT) |
| Growing Start‑up | £250–£400/month (advice, forecasting, payroll) |
| Medium Firm (10–50 staff) | £2,000–£4,000+/year |
| Large Enterprise (100+ staff) | £7,000+/year (including advisory) |
These figures reflect industry averages and illustrate how both size and service needs influence cost.
6. Key Factors That Influence Accounting Fees
- Business size & turnover – More transactions = more work.
- Service complexity – VAT, payroll, R&D, multi‑income returns cost more.
- Record keeping quality – Disorganised records often incur extra cleanup time.
- Accountant credentials – Chartered professionals (ACCA, ACA, CIMA) typically charge higher fees due to trust and expertise.
- Location – London-based firms often charge 20‑30% more than regional firms due to overheads.
7. How to Prepare Before You Get a Quote
Understand what you want: Yearly accounts, tax returns, VAT returns, payroll or advice to assist with planning. Request quotes with breakdowns by task and how they intend to bill you.
8. Ways to Reduce Your Accounting Costs
- Keep digital, organised bookkeeping (e.g. label expenses, separate payroll records).
- Use recommended accounting software so your accountant spends less prep time.
- Handle simple tasks (like data entry) yourself and reserve complex tasks for your accountant.
- Opt for a bundled monthly package rather than costly one-off requests.
- Switch providers if support, communication, or fees don’t meet your expectations.
9. Why Working with an Accountant Pays Off
- Tax savings – experts often recoup their fee through better reliefs and deductions.
- Time saved – business owners report saving ~9 hours weekly with support.
- Business growth – clients with advisors report upwards of 10% revenue gains.
10. How Walden Way & Co Can Help You
- Tailored fixed‑fee or monthly plans to suit sole traders, start‑ups, and SMEs
- Chartered accountants available, with industry‑specific experience
- Efficient document intake via cloud software for smoother workflows
- Transparent, value‑based pricing that evolves with your business
Final Takeaway
Accountant fees for businesses in the UK can vary greatly. As a solo freelancer paying approximately £150-£300/year, and then a growing Ltd company budgeting £1,000 – £1,500 (yearly), it’s important to understand what your fees will be and exactly what they include. An accountant that possesses proper qualifications, and has experience, is an investment. A good accountant ultimately saves you time, lowers the level of risk you expose yourself to, and can improve your profit by getting you better advice. Get a few quotes, be clear about your requirements and restrictions, and find a partner that understands where you are as an individual or a business and what you want to achieve.
