Overview
A plain-English guide to typical UK accountancy and bookkeeping fees in 2026. Covers sole trader self assessment costs, limited company full accounts pricing, monthly bookkeeping rates, VAT return fees, payroll costs, and what factors drive the price. Includes tips on fixed fee vs hourly billing and what to look for in good value.
Key Facts & Figures - Typical UK Cost (2026)
Sole trader Self Assessment return: £150 – £400 per year
Ltd company accounts + CT600: £600 – £1,800 per year
Monthly bookkeeping: £50 – £300 per month
VAT return (per quarter): £100 – £300
Payroll per employee: £5 – £15 per month
Personal tax return: £150 – £500
Bookkeeper hourly rate: £25 – £35 per hour
Qualified accountant hourly rate: £75 – £200 per hour
What Drives the Price?
The cost of accounting services depends on several factors. Business structure is one of the biggest, with limited companies generally paying more than sole traders due to additional compliance requirements. Turnover, transaction volume, the use of cloud accounting software, the level of service required, business location, and the accountant's qualifications can all influence the final price.
Fixed Fee vs Hourly Rate
Most businesses prefer a fixed monthly fee because it provides predictable costs and makes budgeting easier. Hourly rates are more suitable for one-off tasks or specialist advice, while fixed-fee packages often encourage clients to seek support throughout the year without worrying about extra charges.
Sole Traders
For most sole traders, the main accounting requirement is an annual Self Assessment tax return, which typically costs between £150 and £400. Ongoing support packages usually start from £50 to £100 per month, and demand for these services is expected to increase with the introduction of Making Tax Digital.
Limited Companies
Limited companies have more complex accounting requirements, including statutory accounts, Corporation Tax returns, Companies House filings, and often payroll or VAT. As a result, annual accounting packages typically range from £600 to £1,800, with many accountants also providing valuable tax planning advice for directors.
Bookkeeping vs Accountancy
Bookkeeping involves recording and organising day-to-day financial transactions, while accountancy focuses on compliance, tax, and financial reporting. Many small businesses choose one provider for both services, making the process more efficient and ensuring accurate financial records throughout the year.
Action Steps for Clients
1. Ask for a fixed-fee quote covering all known requirements
2. Check qualifications (AAT, ACA, ACCA)
3. Ask who handles your work (senior vs junior)
4. Confirm HMRC agent registration
5. View transparent pricing before engaging
Frequently asked questions
Is a cheaper accountant always worse?
Not always, but low fees often mean reduced scope, unqualified staff, or corners cut. Always ask for a full breakdown.
Do I need a bookkeeper and an accountant?
A provider offering both is usually most efficient and cost-effective for small businesses.
What qualifications should I look for?
AAAT (technician level), ACA (Institute of Chartered Accountants), or ACCA (Association of Chartered Certified Accountants).
How does cloud software affect my fees?
Using Xero or QuickBooks keeps records clean and reduces processing time, which can lower your bookkeeping costs.