How Much Does an Accountant Cost for a Small Business? (2026)
Accountancy fees vary hugely depending on what you actually need, which is why quotes can range from under £200 a year to several thousand. This guide from Filing Accounts UK sets out realistic 2026 market pricing by business type, what drives the cost up or down, and how to compare quotes properly.
At Filing Accounts, we offer transparent, fixed-fee pricing — see our current pricing for exact packages.
Typical Costs by Business Type (2026)
| Business Type | Typical Annual Cost | Typical Monthly Package |
|---|---|---|
| Sole trader (Self Assessment only) | £150 – £600 | £20 – £100/month |
| Sole trader (full bookkeeping + accounts) | £600 – £1,500 | £50 – £150/month |
| Small limited company | £800 – £2,500+ | £100 – £300/month |
| Partnership | £500 – £2,000 | Varies by partner count |
These are realistic market ranges based on current UK accountancy pricing, not a specific quote — actual fees depend heavily on the factors below. Fixed monthly packages have become the norm for most small-business accountants, replacing the older model of a single annual invoice.
What a Small Limited Company Package Usually Includes
A typical £100–£300/month limited company package covers:
- Annual (statutory) accounts filing with Companies House
- Corporation Tax return (CT600)
- Confirmation Statement filing
- Director’s personal Self Assessment return
- Ongoing access to an accountant for questions through the year
VAT returns, payroll, and bookkeeping are often priced as add-ons rather than included as standard, so always check what’s actually covered.
What Actually Drives the Price
- Transaction volume — more invoices, receipts, and bank transactions mean more bookkeeping work
- VAT registration — adds quarterly return preparation, plus complexity if you’re affected by schemes like the CIS reverse charge
- Payroll — typically £ 50–£200/month depending on employee numbers
- Number of income sources — a landlord-director with dividends, rental income, and a second job needs more work than a simple single-income sole trader
- Making Tax Digital status — since April 2026, self-employed people and landlords over £50,000 must submit quarterly digital updates, which some accountants price as an additional service
Fixed Fee vs Hourly Billing
| Model | Pros | Cons |
|---|---|---|
| Fixed monthly fee | Predictable budgeting, ongoing support included | You pay the same even in quiet months |
| One-off annual fee | Lower headline figure | Mid-year questions or HMRC letters often billed separately |
| Hourly billing | You only pay for time used | Hard to budget; typical rates run £25–£300/hour depending on seniority |
Most small-business accountants today use fixed monthly packages, precisely because they remove the uncertainty of hourly billing.
Is It Worth Paying for an Accountant?
You’re not legally required to use one — you can file your own Self Assessment or company accounts. But the value goes beyond just filing: a good accountant identifies tax-saving opportunities (like the right salary and dividend split), keeps you ahead of deadlines, and can represent you if HMRC opens an enquiry. For many small businesses, the tax savings identified alone cover the accountancy fee several times over.
Common Mistakes to Avoid
Comparing Quotes Without Checking What’s Included
A cheap headline price often excludes VAT returns, payroll, or bookkeeping — always ask for a full breakdown before comparing.
Choosing on Price Alone
The cheapest accountant isn’t always the best value if it means missed tax-saving opportunities or deadlines.
Not Asking About Making Tax Digital Support
If you’re affected by MTD for Income Tax, confirm your accountant’s pricing already accounts for quarterly submissions, not just the old annual return.
Frequently Asked Questions
How much does an accountant cost for a sole trader?
Typically £150–£600 a year for a simple Self Assessment return, rising toward £1,500 for full bookkeeping and accounts support.
How much does an accountant cost for a limited company?
Typically £100–£300 a month, or £800–£2,500+ a year, depending on VAT registration, payroll, and transaction volume.
Is a fixed fee better than hourly billing?
For most small businesses, yes — it makes budgeting predictable and usually includes ongoing support, rather than being billed separately for every query.
Do I legally need an accountant?
No, but most small business owners find the time saved and tax planning value outweighs the cost.
See Our Transparent Pricing
At Filing Accounts, we publish clear, fixed-fee pricing so you know exactly what you’ll pay before you commit — no hourly surprises.
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