This is genuinely one of the most searched, and most avoided, questions in UK small business finance. Many accountants simply won’t quote a figure without a sales call first. Here’s an honest breakdown based on what’s typical across the market, without needing to book a call to find out.
Direct answer: in 2026, most sole traders pay £30 to £150 a month for accounting services, while small limited companies typically pay £100 to £350 a month for a full compliance package. Growing SMEs with more complex needs often pay £300 to £1,000 or more. Hourly rates range from roughly £25 to £60 for a junior bookkeeper up to £150 to £300 for a senior tax advisor.
This isn’t financial advice tailored to your specific situation, just a clear picture of typical UK market rates to help you budget and compare quotes fairly.
Typical costs by business type
Sole traders
Sole trader accounting is generally the simplest and cheapest, typically £30 to £150 a month, or a one-off fee of £200 to £500 for a single Self Assessment tax return. This usually covers expense tracking, basic bookkeeping and your annual tax return.
Small limited companies
A small limited company typically pays £100 to £350 a month for a full compliance package, covering annual accounts, corporation tax, and Companies House filings. Adding VAT returns or payroll usually increases this figure.
Growing SMEs
As turnover and complexity increase, so does the cost. Growing SMEs with turnover in the hundreds of thousands often pay £300 to £1,000 or more a month, reflecting more involved bookkeeping, payroll for a larger team, and more strategic tax planning.
What drives the price
- Business structure. Limited companies generally cost more than sole traders, since they carry additional compliance requirements.
- Turnover and transaction volume. More transactions mean more bookkeeping work, which scales the cost.
- VAT registration. VAT returns add a recurring task most basic packages don’t include by default.
- Payroll. Employing staff adds payroll processing and reporting to HMRC via Real Time Information.
- Location. London and South East firms often charge a premium over remote or regional providers for broadly similar services.
Fixed fee versus hourly billing
| Billing model | How it works | Best for |
|---|---|---|
| Fixed monthly fee | A predictable, agreed monthly amount covering defined services | Most small businesses wanting budget certainty |
| Hourly rate | Billed for actual time spent | Occasional, specific advice rather than ongoing support |
| Annual package | One yearly fee, sometimes with a discount for paying upfront | Simpler businesses with predictable, limited needs |
Fixed fee billing has become the more common choice for small businesses, largely because it removes the anxiety of a clock running on every phone call or question.
A note on Making Tax Digital
UK tax reporting requirements have continued to shift toward digital, quarterly reporting for many businesses and landlords. This is one of the reasons DIY accounting has become genuinely riskier for many small businesses, since compliant software and processes now matter more than they once did. An accountant familiar with current requirements helps avoid costly errors here.
Is the cheapest accountant the best value?
Not necessarily. A very low headline price often means compliance-only work with limited access to actual advice. The more useful comparison isn’t the fee alone, it’s the fee against what you’re actually getting: proactive tax guidance, genuine responsiveness, and support that goes beyond simply filing your return on time.
Questions to ask before choosing an accountant
- Exactly what’s included in the quoted fee, and what counts as extra?
- Is pricing fixed monthly, hourly, or annual, and which suits my situation best?
- How quickly do you typically respond to questions?
- Do you proactively flag tax-saving opportunities, or only file what I send you?
This guide gives you the market context to judge quotes fairly, but choosing the right accountant for your specific situation is worth a proper conversation with a few candidates, and, for anything beyond general budgeting, professional advice tailored to your business.
FAQs
What is the average cost of an accountant for a small business in the UK? Most small limited companies pay £100 to £350 a month for a full compliance package in 2026, while sole traders typically pay £30 to £150 a month, depending on complexity.
Is it worth paying more for an accountant? Often, yes, if the higher fee reflects genuine proactive advice and tax planning rather than just compliance filing. An accountant who identifies a meaningful tax saving can easily justify a higher fee.
Do I need an accountant if I’m a sole trader? Not legally required for very simple situations, but many sole traders find the cost worthwhile once their finances involve more than the simplest expense tracking, particularly given evolving digital tax reporting requirements.
Why won’t some accountants publish their prices? Many prefer a sales call to tailor a quote, though a growing number of modern, particularly online-first, firms now publish clear pricing upfront. Providers who won’t give any indication of cost without a call are worth approaching with a little more caution.
