How Much Does an Accountant Cost Per Month in the UK? A Complete Guide 

Are you spending too much or not enough on accounting support each month? You should know the fair price if you consider hiring an accountant to secure your business finances. So, the question is, how much does an accountant cost per month? The question is a mystery when juggling invoices, taxes and day-to-day operations. 

Hiring an accountant in London is not a luxury for small business owners. It’s a necessity to prepare before tax season arrives. Besides keeping your books tidy, it helps you save time, reduce costly mistakes, and make smarter decisions to grow your business.

This guide will break down the monthly fees for various services for a solo trader and a limited company. You’ll also learn what factors influence pricing, how accountants charge, and tips to get the most value from your investment. In addition, we’ll answer the most common questions UK business owners ask about accounting fees.

What is the Average Monthly Cost of an Accountant for Small Businesses?

The cost of hiring an accountant in the UK depends on your business model and the type of service you need. Here’s a general guide:

• Solo traders can expect to pay between £60 and £150 per month 
• Limited companies pay between £100-£350+ per month
• Startups and growing businesses might spend more depending on complexity, VAT handling, payroll and strategic advice

These fees include bookkeeping, annual accounts, self-assessment, and tax returns. However, more advanced services like financial forecasting or R&D tax credit claims will increase your monthly cost.

How Much Do Different Accounting Services Cost?

Services may differ from accountant to accountant. Likewise, different services cost variably. The cost depends on how hands-on you need your accountant to be, and the structure of your business. Have a look at the monthly pricing by business type:

Accountancy Fees for a Limited Company

Fees for Limited companies tend to be higher because of more compliance requirements. Expect a monthly cost between £100-£350+. This may include:

• Preparing and submitting annual accounts
• Coporation tax filing
• Payroll and pension reporting
• VAT returns
• Companies House submissions
• General business tax planning and advice

A professional accountant can charge at the higher end of this range if your company is VAT registered, has multiple employees, or runs more complex operations. 

Accountancy Fees for the Self-Employed

Solo traders and freelancers usually hire an accountant to manage their finances effortlessly. They don’t have complex operations. So, monthly costs are lower, £50-£150 per month. Common services include:

• Self-assessment tax return
• Basic bookkeeping
• Income tracking and expense categorisation
• Limited ad-hoc advice

Accountants charge less because a streamlined accountant setup keeps everything compliant without overcomplicating cash flow.

What factors Affect How Much an Accountant charges?

You won’t get a one-size-fits-all fee while looking for accounting charges. The size of your business, structure, complexity, and postcode together set the cost. Let’s break down the common factors that influence accountant fees in the UK.

1. Size of Your Business

Larger businesses naturally generate more transactions, have more staff, and often require a wider range of services. The charges of a solo trader with one income stream will be far less than those of a limited company with five employees, multiple suppliers, and recurring client invoices. 

2. Complexity of Financial Transactions

 The financial operations will be more intricate if you run payroll or work across international markets. Your fees will increase if your accountant needs more time to manage everything accurately.

3. Being a Limited Company

Limited companies face greater compliance responsibilities than solo traders, such as accounts, corporation tax, statutory filings, and director responsibilities. Those require more time and more expertise from your accountant. 

4. One-Off or Ongoing Services

Hiring an accountant for a one-time tax return looks like it costs less, but it increases the risk of financial mistakes and wrong decisions. Most small businesses opt for ongoing support, which helps catch issues early and build long-term savings.

5. Location in the UK

Location matters because of operational costs. Accountants in London or accountants in larger cities charge more. Many modern firms offer remote services at competitive rates, without compromising quality.

How Much Does an Accountant Cost Per Service?

Some accountants provide individual services. This can give you more flexibility if you need help in specific areas. Let’s break down  what you will get in the service package:

Support & Service Breakdown

• Self-Assessment Tax Return: £100-£300
• VAT Returns: £75-£200  
• Payroll (per employee): £5-£10 per payslip, or £25-£100 monthly for small teams
• Bookkeeping: £20-£50 per hour or 100-£400 per month, depending on volume
• Annual Accounts (Ltd Company): £600-£- £ 1200 per year
• Corporation Tax Return: £250-£600
• CIS Reterns: £30-£70 per month
• Business Advice /Consultation: £75-£150 per hour

These prices may differ depending on your accountant’s experience, your business size, and how you organise your financial records.

Optional Add-on Services

Some services aren’t essential, but can add significant value if you’re looking to scale:

• Cash Flow Forecasting 
• Budgeting Support
• Tax Planning and Optimisation
• R&D Tax Credit Claims
• HMRC investigation Support
• Cloud Accounting Software Setup (Xero, QuickBooks)

These may be charged as one-off projects or added to your monthly fee.

What are some Alternative Ways to Pay Your Accountant?

Not every business wants or needs a traditional fixed-fee model. Modern accountants offer flexible payment options to suit your cash flow and workload. Here are the most common alternatives:

1. Monthly Subscription Plans

Imagine investing in Netflix in your finances. This is predictable and easy to budget. Monthly packages include bookkeeping, tax returns, payroll, and basic support. They are ideal for businesses that prefer consistency and long-term guidance.

Pro tip:

Look for plans that scale with your business so you only pay for what you need.

2. Pay-as-You-Go (PAYG)

PAYG is an excellent option for simple businesses or seasonal support. You only pay when you need a particular service.

3. Fixed Annual Packages

Pay one lump sum upfront to cover your accounting needs for the entire year. In this service, you will get a small discount compared to the monthly pricing. 

4. Hybrid Models

Some accountants combine approaches, for example, a small monthly fee plus PAYG for extras. This gives you a balance of structure and flexibility.

Conclusion

“How much does an accountant cost per month?” is an obvious question before hiring an accountant. Understanding an accountant’s charges will help you invest smartly. Whether you are a startup or trying to scale, you can decide how much you should invest in managing your finances. 

Don’t wait for tax deadlines or financial stress to slow your growth. Get a quote and secure your finances before it’s too late.