Cost of an Accountant for a Limited Company (2026 UK Guide)
What limited company accounting really costs, what a standard package includes, and which services are charged on top.
- Published on:
- 4 September 2026
- Last updated on:
- 9 September 2026
Table of contents
Key takeaways
- Typical cost: A simple one-director limited company usually pays around £600–£1,500 a year for basic accounting services. More complex companies can pay £1,500–£5,000+.
- Monthly fees: Many accountants charge around £60–£350+ per month, depending on the services you need.
- Turnover matters: Companies with higher turnover usually pay more because they have more transactions, employees, VAT work and accounting requirements.
- What is included: Basic packages often cover annual accounts, the Corporation Tax return (CT600), Confirmation Statement and basic director payroll. Some also include a director’s Self Assessment.
- Extra costs: VAT returns, additional payroll, CIS, bookkeeping, management accounts and tax advice often cost extra.
- Online vs high-street: Online accountants often charge less, while high-street firms may offer more face-to-face support.
- Compare the full package: The cheapest quote is not always the best option. Check exactly what the accountant includes before you decide.
How Much Does an Accountant Cost for a Limited Company?
The cost of an accountant for a limited company depends on the size and complexity of your business. For a simple, one-director company with organised records, you can expect to pay around £600–£1,500 a year for basic accounting services.
This may cover:
- Annual statutory accounts
- Corporation Tax return (CT600)
- Companies House Confirmation Statement
- Basic director payroll
- One director’s Self Assessment
A small company with VAT and employees may pay around £1,500–£5,000 a year. Larger or more complex companies can pay £5,000 to £15,000+, particularly when they need management accounts, tax planning or specialist advice. Your fees will usually increase if your company has employees, is VAT registered, has a high number of transactions or needs regular bookkeeping and tax advice.
Get a more accurate idea of what you could pay based on your specific requirements.
We shall now breakdown the estimated costs based on the type of business, its turnover, and based on the specific services.
Accountant Costs by Business Type
Your business structure and accounting needs affect the price.
The table below shows typical monthly and annual costs for different types of limited companies.
| Business type | Monthly fee | Annual fee | Typically included |
|---|---|---|---|
| Solo director, no employees | £50–£100 | £600–£1,200 | Annual accounts, CT600, Confirmation Statement, director payroll and Self Assessment |
| Small business, VAT + payroll | £100–£200 | £1,200–£2,400 | Accounts, CT600, VAT returns and payroll |
| Growing / complex | £200–£350+ | £2,400–£4,200+ | VAT, payroll, bookkeeping, management accounts and tax advice |
Accountant Costs by Company Turnover
Turnover is one of the factors accountants consider when setting their fees.
| Annual turnover | Monthly fee | Annual fee |
|---|---|---|
| Up to £90,000 | £50–£120 | £600–£1,500 |
| £90,000–£250,000 | £100–£250 | £1,200–£3,000 |
| £250,000–£500,000 | £200–£400 | £2,400–£5,000 |
| £500,000–£1m | £300–£600 | £3,600–£7,000 |
| £1m+ | £500–£1,500+ | £6,000–£15,000+ |
However, turnover alone does not determine the price. The number of transactions, employees and services you need can have just as much impact.
Limited Company Accountant Fees by Service
The table below shows how much common limited company accounting services can add to your overall cost.
| Accounting service | Typical cost | How often | What it covers |
|---|---|---|---|
| Annual accounts | £300–£1,200+ | Yearly | Preparing and filing statutory company accounts |
| Corporation Tax return (CT600) | £150–£500+ | Yearly | Calculating and filing your Corporation Tax return with HMRC |
| Confirmation Statement | £50–£150 | Yearly | Preparing and filing your company’s Confirmation Statement |
| VAT returns | £50–£100+ | Quarterly/monthly | Preparing and submitting VAT returns |
| Payroll | £10–£25+ per employee | Monthly | PAYE, payslips and payroll reporting |
| CIS returns | £20–£50+ | Monthly | Calculating and reporting CIS deductions |
| Bookkeeping | £50–£300+ | Monthly | Recording transactions, reconciliations and maintaining your books |
| Management accounts | £50–£200+ | Monthly/quarterly | Profit and loss, balance sheet and business performance reports |
| Director’s Self Assessment | £120–£300+ | Yearly | Preparing and filing the director’s personal tax return |
| Tax planning/advice | £100–£300+ per hour or fixed fee | As needed | Tax planning, business advice and specialist tax work |
How Do Accountants Charge for Limited Company Work?
Most UK accountants use fixed fees, one-off pricing or hourly rates for routine work. Some also use value-based pricing, particularly when they provide tax planning, business advice or other services where the value to the company matters more than the time spent.
| Pricing model | Typical cost | How it works | Best for |
|---|---|---|---|
| Fixed monthly | £60–£350+ per month | You pay a set monthly fee for an agreed package of services | Companies that want predictable costs |
| One-off / annual | £500–£1,200+ VAT | You pay separately for services such as year-end accounts and Corporation Tax | Simple companies with good records |
| Hourly | £100–£300+ per hour | You pay for the time the accountant spends on your work | One-off advice or unusual work |
| Value-based | Varies by service | The fee reflects the value and outcome of the advice rather than just the time involved | Tax planning, business advice and specialist projects |
A fixed monthly package can make regular accounting costs easier to budget. A one-off service may suit a simple company that only needs year-end accounts, while hourly pricing often applies to work outside your normal package. Value-based pricing is more common for specialist advice where the accountant’s work can have a significant financial impact on the business.
What Affects the Cost of a Limited Company Accountant?
Here are some factors that affect the accountancy fees for Ltd company.
Turnover & Transaction Volume
Higher turnover often means more invoices, expenses and transactions to process. However, turnover is not the only factor. A company with £500,000 turnover but with a small number of transactions may be easier to manage than a business with £100,000 turnover but with thousands of transactions.
VAT Registration
VAT-registered companies need to submit VAT returns and keep accurate VAT records. If your accountant handles your VAT returns, expect this to increase your accounting fee. The cost depends on how often you submit returns and how much work your records require
Payroll & Employees
Employees add more payroll work.
Your accountant may need to manage:
- PAYE
- National Insurance
- Real Time Information (RTI) submissions
- Payslips
- P60s
- Workplace pension requirements
Many accountants charge an additional monthly fee for each employee or payroll run.
Industry & Complexity
Some businesses need more specialist accounting work than others. For example, construction companies may need CIS returns, while contractors may need advice about IR35. Companies with R&D claims, overseas transactions or complex share structures may also need specialist advice.
Software & Record-Keeping
Good records can help reduce your accounting costs. Using software such as Xero, QuickBooks or FreeAgent can make it easier to record income, expenses and bank transactions. If your accountant has to organise missing records or correct your bookkeeping, you may pay more.
Location & Experience
Accountants in major cities can charge more because of higher operating costs. Specialist or highly experienced accountants may also charge higher fees. Online accountants can often offer lower prices because they work digitally and serve clients across the UK.
What Do Limited Company Accountant Package Covers?
Every accountant has a different pricing structure. Check the package carefully before signing up.
Here is the breakdown of what’s included in a standard package and what is usually charged extra.
| Included in a standard package | Usually charged extra |
|---|---|
| Annual statutory accounts | Company formation |
| Corporation Tax return (CT600) | Registered office address |
| Confirmation Statement | Additional bookkeeping |
| Director’s Self Assessment | Management accounts |
| Payroll for 1–2 directors | R&D claims, IR35 or HMRC enquiry support |
However, some accountants include VAT and payroll in their standard packages, while others charge separately. Always ask for a clear list of included services.
Online vs High-Street Accountant: Which Costs Less?
| Online accountant | High-street accountant | |
|---|---|---|
| Typical monthly fee | Around £50–£200+ | Around £150–£400+ |
| Contact | Email, phone and video calls | Phone and face-to-face meetings |
| Best for | Contractors, freelancers and small companies | Complex businesses and clients wanting local support |
Online accountants often have lower overheads, which can help them offer lower fees. A high-street accountant may cost more but can provide face-to-face meetings and local support. The right option depends on how much support your company needs.
Is a Limited Company Accountant Worth the Cost?
For many limited companies, an accountant can provide good value. They can help you prepare your accounts, meet HMRC and Companies House deadlines, manage Corporation Tax and identify legitimate tax-saving opportunities. An accountant can also save you time. Instead of managing accounts, payroll and tax returns yourself, you can focus on running your business. However, you do not always need an expensive package. A simple company with few transactions may only need basic compliance services.
How to Reduce Your Ltd Company Accountant Fees
You can keep your accounting costs under control by:
- Keeping accurate records throughout the year.
- Using cloud accounting software such as Xero, QuickBooks or FreeAgent.
- Reconciling your bank account regularly.
- Submitting information on time.
- Choosing a package that matches your actual needs.
- Comparing quotes from several accountants.
- Checking which services cost extra.
- Bundling accounting, VAT and payroll where it offers better value.
Good bookkeeping is one of the easiest ways to reduce the amount of time your accountant spends on your accounts.
How to Choose the Right Accountant (Without Overpaying)
Do not choose an accountant based on price alone. Ask each accountant what their fee includes and what they charge extra for. Compare the total annual cost, not just the advertised monthly price. Before choosing an accountant, consider:
- Does the package include annual accounts and Corporation Tax?
- Is the Confirmation Statement included?
- Is payroll included?
- Are VAT returns included?
- How much bookkeeping do they cover?
- Do they charge separately for Self Assessment?
- What happens if you need extra advice?
- Which accounting software do they use?
- Do they have experience with your industry?
- Who will handle your account?
Frequently asked questions
How much does an accountant cost for a limited company?
A simple, one-director company with organised records usually pays around £600-£1,500 a year for basic accounting services. A small company with VAT and employees may pay around £1,500-£5,000 a year, and larger or more complex companies can pay £5,000 to £15,000+.
What is included in a standard limited company package?
Most standard packages cover annual statutory accounts, the Corporation Tax return (CT600), the Confirmation Statement, a director's Self Assessment and payroll for one or two directors. Company formation, a registered office address, additional bookkeeping, management accounts and R&D or IR35 work are usually charged separately.
Is it cheaper to use an online accountant?
Often, yes. Online accountants typically charge around £50-£200+ a month against £150-£400+ for a high-street firm, because they have lower overheads and work digitally. A high-street accountant costs more but can offer face-to-face meetings and local support.
Do I pay more if my company is VAT registered?
Usually. VAT-registered companies have to submit VAT returns and keep accurate VAT records, and if your accountant handles that it is normally charged on top around £50-£100+ per return. The cost depends on how often you submit and how much work your records need.
How much does payroll add to the cost?
Payroll is typically £10-£25+ per employee per month, and it covers PAYE, payslips and payroll reporting. Employees also bring National Insurance, RTI submissions, P60s and workplace pension duties, which is why many accountants charge a separate fee for each employee or payroll run.
Does turnover decide what I pay?
It is one factor, not the only one. A company with £500,000 turnover but few transactions can be easier to manage than a business turning over £100,000 across thousands of transactions, so the number of transactions, the number of employees and the services you need often matter just as much.
How can I reduce my accountancy fees?
Keep accurate records through the year, use cloud software such as Xero, QuickBooks or FreeAgent, reconcile your bank regularly and send information on time. Good bookkeeping is the single easiest way to cut the hours your accountant spends on your accounts.
Should I just choose the cheapest quote?
No. Ask each accountant what the fee includes and what is charged extra, then compare the total annual cost rather than the advertised monthly price. A cheap headline figure with accounts, VAT, payroll and Self Assessment all billed separately can end up costing more than a fuller package.
Rita writes practical accounting and tax guidance for business owners, drawing on her experience supporting businesses with accounts, tax and financial management.
Bilal reviews our accounting and tax content to ensure it is clear, accurate and aligned with current requirements.