How Much Does an Accountant Cost Per Month in the UK? (2025/26 Guide)

One of the first questions any business owner asks when considering professional accounting support is: how much does an accountant actually cost per month in the UK? It’s a fair question, and the honest answer is that it depends — on the size and complexity of your business, the services you need, and the type of firm you work with. This guide from AccoFirm breaks down the real monthly accounting costs for sole traders, limited companies, and SMEs in 2025/26, including what each price bracket should cover, what to watch out for, and how to make sure you’re getting genuine value for your money.

Why Monthly Pricing Has Become the Norm

The accountancy profession has shifted decisively away from hourly billing over the past decade. Fixed monthly fees are now the standard across most UK firms serving small and medium-sized businesses, and there are good reasons why both accountants and their clients prefer it.

The rise of cloud accounting software, Making Tax Digital obligations, and business owners simply wanting predictable costs have all accelerated this shift. A monthly retainer model works well because:

• You always know where you stand — no surprise invoices landing at year end
• You’re more likely to pick up the phone — when you’re already paying a flat monthly fee, you don’t hesitate to ask questions throughout the year
• Software is usually bundled in — most monthly packages now include a cloud accounting subscription (Xero, QuickBooks, or FreeAgent) as part of the fee
• Scope is clearly defined — a good fixed-fee proposal sets out exactly what’s included and what would generate an additional charge, removing any ambiguity

 

How Much Does an Accountant Cost Per Month for a Sole Trader?

Sole trader accounting fees are the most affordable in the market, which makes sense given the simpler compliance requirements compared to limited companies. Based on 2025/26 market data:

Service Scope	Monthly Cost Range
Self Assessment only (year-end, no ongoing support)	One-off £150–£400/year
Basic monthly package (bookkeeping support + SA return)	£40 – £75/month
Mid-tier package (VAT returns + SA + expense review)	£75 – £125/month
Full-service package (VAT, payroll, quarterly reviews, SA)	£100 – £200/month

For most sole traders with straightforward affairs and turnover below £50,000, spending £50–£100 per month covers everything you’d reasonably need — Self Assessment, quarterly expense reviews, Making Tax Digital compliance, and responsive support when questions come up. If you’re VAT-registered or have employees, expect to sit towards the higher end of that range.

 

How Much Does an Accountant Cost Per Month for a Limited Company?

Limited company fees are higher, and understandably so. There’s more to manage — Corporation Tax, Companies House filings, director payroll, dividend planning — and the compliance obligations are more involved. Here’s what the market looks like in 2025/26:

Service Scope	Monthly Cost Range
Micro-company, no employees, no VAT	£75 – £125/month
One-director company with salary and dividends	£100 – £175/month
Company with VAT registration and employee payroll	£125 – £250/month
Growing SME with monthly management accounts	£200 – £500/month
Full CFO-level service (reporting, forecasting, board support)	£400 – £1,500+/month

The most common scenario — a single-director limited company with a simple payroll and quarterly VAT returns — typically falls between £125 and £200 per month. At that level, you should expect annual accounts, Corporation Tax return, director payroll, quarterly VAT returns, year-end dividend advice, and the director’s Self Assessment to all be included.

What Should a Monthly Accounting Package Actually Include?

When you’re comparing fees, always ask for a written scope of services — not just a headline price. A solid monthly accounting package for a small limited company should cover:

• Annual statutory accounts prepared to Companies House standard
• Corporation Tax return (CT600) preparation and filing
• Director payroll — monthly payslips, RTI submissions, P60s, and P11Ds
• VAT return preparation and Making Tax Digital submission
• Director’s Self Assessment tax return
• Dividend vouchers and board minutes for each dividend payment
• Companies House confirmation statement
• Cloud accounting software subscription
• Unlimited email support for day-to-day questions
• At least one structured review call per year (quarterly is better)

If any of these are missing from a quote, ask specifically whether they’re included or whether they’d be billed separately.

 

Hidden Costs to Watch Out For

The monthly headline figure isn’t always the full picture. When comparing quotes, keep an eye out for these common extras:

• Onboarding or setup fees when switching accountants — these can range from £100 to £500
• Additional payroll employees above a set number included in the base fee
• HMRC enquiry response — some firms charge separately for handling compliance checks
• Reference letters for mortgages, visa applications, or business financing
• Extra Self Assessment returns for a spouse or family member
• Bookkeeping from bank statements — some firms quote on the assumption that your records are already clean and reconciled, and charge extra if they’re not

At AccoFirm, all of the above are included in our fixed monthly packages. Our engagement letters set out the full scope clearly so there’s never any ambiguity about what you’re paying for.

 

Is It Cheaper to Do Your Own Accounting?

For very simple sole traders with low turnover, self-filing through HMRC’s free online tools is technically possible. But the cost comparison is rarely as clear-cut as it first appears.

Think about it this way:

• Your time has a value — DIY accounting typically takes a sole trader anywhere from 5 to 15 hours per year, even for simple affairs. At your own billable rate, that time may well cost more than a monthly accountancy fee
• You’re likely leaving money on the table — research consistently shows that self-filing sole traders miss an average of £600–£1,500 in allowable deductions each year, far outweighing what an accountant would charge
• Mistakes are expensive — late or incorrect filings lead to penalties. A good accountant guarantees timely, accurate submissions
• MTD is changing the landscape — from April 2026, quarterly digital reporting becomes mandatory for many self-employed individuals, making DIY accounting considerably more complex and time-consuming

 

Frequently Asked Questions

What’s a reasonable monthly fee for a one-person limited company? For a single-director limited company with no employees and straightforward affairs, a reasonable monthly accounting fee in the UK is around £100–£150. That should include annual accounts, Corporation Tax, director payroll, and the director’s Self Assessment as a minimum.

Do monthly accounting fees include VAT? Most UK accounting firms quote their fees exclusive of VAT, so you’ll need to add 20% to compare costs on a like-for-like basis. At AccoFirm, we always make clear upfront whether our quoted fees are inclusive or exclusive of VAT.

Can I negotiate my accounting fees? Yes, and it’s worth asking. Fees are more negotiable than many people realise, particularly if you keep well-organised records, already use cloud accounting software, and are willing to commit to an ongoing relationship. AccoFirm offers competitive fixed-fee packages with no long-term tie-in contracts.