How much do limited company accountants cost?

Great service, reliability and professionalism are all things every business should expect from a good accountant.

But, what about costs? For all small business owners, this is a crucial factor when choosing an accountant.

Most small limited companies pay between £800 and £2,000 a year for accountancy services, depending on the level of support required and the complexity of their accounting needs.

What factors influence your accountancy costs?

There isn’t a one-size-fits-all answer.

Two companies with a similar turnover can pay very different fees depending on how organised their records are, what software they use, and how often they need help.

Here are some of the key factors which will affect how much you pay your accountant:

• The size of your company (turnover).
• What services does the accountant carry out?
• The complexity of your accounts.
• If you have employees or not.
• If the company is VAT registered or not.
• If the accountant does your bookkeeping.
• Whether you need regular management accounts or forecasts.
• How responsive or hands-on you want your accountant to be.

Accountancy costs – different methods of charging clients

Fixed fee

The fixed-fee model has become more popular over the past few years, driven by increased competition and industry streamlining enabled by online accounting.

Monthly, quarterly or annual cost models are standard, particularly in the contractor accounting industry.

The shift to fixed-fee pricing has largely been driven by cloud-based software such as Xero, which reduces manual work and makes costs more predictable.

It also allows business owners to budget more easily, knowing exactly what they’ll pay each month.

Any work carried out beyond the pre-agreed service will usually be charged at an hourly or one-off rate.

Time-based

Historically, many accountancy firms would charge on a time basis, perhaps with a minimum annual fee.

This may still be a way of working that you prefer, particularly if your accounting needs cannot be easily streamlined into a fixed-fee model.

This type of billing can still suit growing companies with changing needs, for instance, those who only need year-end help one year but full bookkeeping the next.

It can also work well if you prefer a more traditional relationship where you speak directly to the same accountant each time.

How much do limited company accountants cost?

More and more accountancy firms provide a fixed-fee service, which covers the majority of tasks most small limited companies require, including at a minimum:

• Preparation of annual accounts
• Submitting your Corporation Tax return
• VAT accounting (if applicable)
• Processing payroll (usually for 1 or 2 people)
• Dealing with HMRC and Companies House
• Provision of some kind of online accounting software

For these core services, you can expect to pay between £70 and £180 per month.

Fees vary widely between firms, but most small limited companies fall within a fairly narrow band.

The key is to understand what’s included and what isn’t, especially if you’re comparing quotes online.

Here are some examples, using firms we work with at LCH. Prices checked September 2026:

Accountant	Monthly Cost	Notes
Aardvark Accounting	£89	Full service, free accounting software, payroll, tax advice.
Clever Accounts	£104.50	First three months half-price for new clients. Full package.
SG Accounting	£119	Full package, contractor specialists. Half price offer currently available.
Bright Ideas Accountancy	From £119	5/5 Google Rating. Free accounting software. Full accounting package.

Always check what level of personal tax support is included. Some firms include directors’ tax returns in the main package, while others charge separately. The same goes for registered office services and IR35 support.

Aside from additional costs you can reasonably expect to pay due to increased requirements, extra staff members, etc., you may pay extra for things like this:

• Any initial start-up costs, including company formation
• References for mortgages / rental / other loans
• Submitting your Confirmation Statement (£50)
• Preparation of directors’ Self Assessment tax returns. These are personal tax returns and are often charged separately. If the company pays the cost of preparing a director’s personal tax return, there may be a benefit-in-kind consequence.
• Bookkeeping (beyond that provided automatically via online software)
• Providing a registered office address and/or service address for directors

Can you do your own accounts?

Yes, you’re under no legal obligation to appoint an accountant. There are also some excellent online accounting software tools out there to make your life easier.

However, for several reasons, we highly recommend that you use an accountant unless you have the time and the necessary skills.

Small mistakes can easily lead to HMRC penalties or unclaimed expenses and allowances. A good accountant will often save you more in taxes than they cost in fees.

Your valuable time is probably better spent building up your business.

Recommended accounting software

Whether you hire an accountant or handle your own accounts, we highly recommend using online accounting software.

It’s affordable and will save you a lot of time.

• Xero (our partner offer – 80% off for 6 months).
• FreeAgent (our partner offer – 30-day free trial, 10% off for life).

Before you sign up, find out if your accountant supports either of these platforms and whether the subscriptions are included in their monthly fees.

Other considerations

Cost is an important factor when choosing an accountant, but other factors are equally important.

Good customer service is imperative, and unfortunately, you can’t always gauge it until you become a client.

It’s also worth thinking about how you prefer to work.

Some accountants offer everything online, while others still value face-to-face meetings. A quick phone call can tell you a lot about a firm’s approachability and responsiveness.

This is why a recommendation from a trusted colleague is worth its weight in gold.

In short, a good accountant isn’t just a cost; they’re an investment in your company’s accuracy, compliance and growth. Take time to compare options, read reviews, and ask what’s included before you sign up.

Try our guide to choosing the best limited company accountant for more ideas.

FAQs about accountant costs

Can I change accountants mid-year?

Yes. You can switch accountants at any time. Most firms will handle the professional clearance process for you, including getting the necessary handover information from your previous accountant.

You need to make sure you have paid any outstanding fees to your current accountant first.

Some firms will also waive any ‘catch-up’ fees (if you move during your company’s accounting year) if you sign on the dotted line.

Do accountants charge extra for advice?

Many fixed-fee packages include a fair use level of support, such as email or phone queries. However, more detailed tax planning or complex advice is often charged separately, so it’s worth checking what’s covered before you sign up.

Why do some firms charge much less than others?

Some online firms work at scale and automate much of the accounting process (with the help of accounting software), while smaller local accountants may charge more but offer more one-to-one contact.

Is it cheaper to pay annually rather than monthly?

Some firms offer a small discount if you pay a year’s worth upfront, but most prefer monthly billing to smooth cash flow, which also suits most businesses. Either way, the annual cost will usually not vary much.

Will my fees increase as my company grows?

Yes, usually. As your turnover rises or you employ staff, your accounting becomes more complex. Most firms offer tiered pricing, so expect costs to rise gradually as your business grows.

Do I have to pay extra for VAT or payroll?

That depends on your package. Basic plans may only include annual accounts and filing your Corporation Tax return, while full-service packages include VAT accounting and payroll for 1 or 2 employees.

Can I negotiate accountancy fees?

It’s worth asking. Some firms will adjust their pricing if you handle specific tasks yourself, such as bookkeeping or VAT returns. Others may offer discounts for referrals or a longer-term commitment.