Accountancy fees in the UK vary enormously - from a few hundred pounds a year for a basic self assessment to several thousand for a full limited company service. This guide explains what drives the cost and what you should realistically expect to pay.
What factors affect the cost?
Accountancy fees depend on four main things:
- Your business structure - a limited company has more obligations (and therefore costs more) than a sole trader.
- Your complexity - property income, investments, multiple income streams, employees, and overseas activity all add work.
- The billing model - hourly billing is unpredictable; fixed-fee billing is transparent.
- The firm's overheads - a city-centre firm with offices charges more than a fully remote one. You're paying for the building, not the accounting.
Typical accountancy costs for sole traders
For a sole trader with straightforward affairs (one income source, simple expenses), you should expect to pay:
- £300–£600 per year for a basic self assessment-only service
- £500–£900 per year if you also want bookkeeping and expense advice
- £600–£1,200 per year if you're VAT registered
Some accountants charge per service; others offer fixed monthly packages. Monthly packages (typically £40–£80/month) give you year-round support, not just a January-deadline scramble.
At Surfleet, we charge £50/month for sole traders. That covers self assessment, expense review, HMRC registration and correspondence.
Typical accountancy costs for limited companies
A limited company has significantly more obligations than a sole trader: annual accounts (Companies House), corporation tax return (HMRC), director's self assessment, payroll, and VAT returns. The typical annual cost from a traditional firm:
- £1,500–£3,000 per year for a small sole-director company
- £2,000–£4,000 per year if you have employees and VAT
- More if you want ongoing bookkeeping
Fixed-fee online accountants typically charge £80–£150 per month (£960–£1,800 per year) for a comprehensive service. This is the modern model - predictable fees, cloud-based processes, faster responses.
Hourly vs fixed-fee: which is better for you?
Hourly billing (typically £50–£200/hour depending on the firm and location) means you can't predict your annual cost. It also creates a perverse incentive - the slower the accountant, the more they earn.
Fixed-fee billing gives you certainty. You know your annual accounting cost before you start. The accountant has an incentive to be efficient. And you can ask questions without worrying you're running up a tab.
Fixed fees are better for small businesses. That's why we use them.
What should be included in the fee?
Ask any accountant to specify exactly what's included before you agree a price. A good package for a limited company should cover:
- Annual accounts (Companies House filing)
- Corporation tax return (CT600, HMRC filing)
- Director's self assessment
- Payroll and RTI (at minimum for the director)
- VAT returns (if registered)
- Correspondence with HMRC on your behalf
- HMRC 64-8 authorisation (so they deal with HMRC directly)
Watch for fees that add up separately: "self assessment extra - £150", "payroll per employee - £X", "VAT extra - £200". A genuinely fixed fee includes all of these.
Is a cheap accountant worth it?
The cheapest option isn't always the best value. An accountant who misses allowable expenses, files late, or doesn't proactively flag issues can cost you more in missed deductions and penalties than the difference in fees.
That said, there's no reason to pay a premium for a service that offers nothing extra. A modern fixed-fee accountant can offer the same quality as a traditional firm for significantly less - because their overheads are lower, not because their work is cheaper.
What does Surfleet Accounting charge?
Our plans are fixed monthly:
- Self-Employed - £50/month: self assessment, expense review, HMRC correspondence
- Ltd Essentials - £100/month: accounts, CT600, director's self assessment, payroll, VAT
- Ltd Growth - £150/month: everything in Essentials plus monthly bookkeeping, management accounts, payroll for up to 5 employees
No setup fees, no minimum contract, no hourly charges for questions. See the full plan comparison →