Most small businesses in the UK pay somewhere between £75 and £500 a month for ongoing accounting, or £50 to £150 an hour for one-off work, depending on the entity’s size and how much of the bookkeeping is already in order. The final figure depends heavily on your business structure, VAT status, and how Making Tax Digital reshapes your quarterly workload. Read on for the detailed ranges and the questions worth asking before you sign anything.
TL;DR:
- Higher costs often result from added VAT registration, payroll, multi-channel e-commerce, or a backlog of unprocessed receipts, which significantly increase reconciliation time.
- Making Tax Digital transitions from annual to quarterly submissions will raise ongoing costs, with fees likely increasing due to the need for more frequent software subscriptions and agent involvement.
- Comparing quotes requires clarifying scope, included services, software used, and what triggers extra charges to avoid hidden costs and ensure fair pricing.
- Using connected bank feeds and logging receipts weekly can help keep accounting costs toward the lower end of the pricing spectrum.
Table of Contents
- Typical fee ranges: hourly, monthly and annual examples
- What services are usually included in the price
- How accountants charge: retainers, hourly rates and per-service fees
- What actually pushes your fee up or down
- What sole traders, freelancers and limited companies typically pay
- How to budget, compare quotes and negotiate fairly
- What I have seen change with the shift to quarterly reporting
- How eAccounts fits into this picture
- Where to check the detail yourself
- Sources
- FAQ
Typical fee ranges: hourly, monthly and annual examples
Hourly billing tends to suit one-off jobs: a single self-assessment return, a query about a tax notice, or advice on setting up a limited company. Monthly retainers suit ongoing work: bookkeeping, VAT returns, payroll, and year-end accounts bundled into one predictable charge.
Common UK market bands, drawn from multiple accounting guides rather than any single source, put hourly rates at roughly £50 to £150 and monthly retainers at roughly £75 to £500. Where your quote lands in that range depends on transaction volume, VAT registration, payroll headcount, and how much of your bookkeeping is already digital.
- Hourly work: typically used for ad hoc advice, one-off returns, or specific tax queries rather than ongoing compliance.
- Monthly retainers: cover recurring bookkeeping, VAT, and quarterly MTD submissions, usually scaled to transaction count.
- Annual packages: a low-transaction sole trader with simple income might pay towards the lower end of the monthly band, while a small limited company with payroll and VAT registration sits higher.
A low-transaction sole trader with straightforward income and a small limited company with payroll and VAT registration can sit at opposite ends of the same fee band, which is why quotes vary so widely between firms and why comparing scope, not just headline price, matters more than the number itself.
Regional variation exists too. Firms based in London and the South East generally carry higher overheads than those elsewhere, though cloud accounting has narrowed that gap since location matters less when most work happens online.
What services are usually included in the price
A quoted fee rarely means the same thing from one firm to the next, so it helps to know what typically sits inside a package before comparing numbers.
Core inclusions usually cover:
- Bookkeeping, at a frequency ranging from monthly to quarterly depending on the package.
- VAT returns, prepared and filed on the required schedule once a business is VAT registered.
- Year-end accounts, the statutory annual accounts required for limited companies.
- Self-assessment or company tax returns, covering personal or corporation tax filing.
Common add-ons that push the price up include payroll processing, pensions auto-enrolment administration, Construction Industry Scheme (CIS) reporting for contractors, ongoing tax planning advice, and formal agent authorisation with HMRC to deal with queries on your behalf.
The depth of work involved changes the fee as much as the list of services does. A business with tidy digital records costs less to service than one needing a catch-up reconciliation covering several months of unsorted receipts and bank statements, since that extra time gets billed one way or another.
How accountants charge: retainers, hourly rates and per-service fees
Accountants generally use one of a handful of billing models, and knowing which applies to a quote helps you judge whether it is fair.
- Hourly billing: charged for one-off advice, HMRC correspondence, or ad hoc queries; useful when you need occasional help rather than ongoing support.
- Fixed monthly retainer: a flat fee covering agreed recurring work, usually bookkeeping, VAT, and year-end filing, banded by transaction volume or payroll headcount.
- Per-service or project fees: a set price for a defined piece of work, such as a single self-assessment return or a company formation.
- Package pricing: bundles several services (bookkeeping, VAT, payroll, year-end accounts) into one monthly charge, often the most predictable option for a growing business.
Retainers suit businesses that want predictable outgoings and continuous compliance support, particularly now that MTD has turned annual filing into a quarterly obligation. Pay-as-you-go suits businesses with minimal ongoing needs, though it can leave gaps in compliance if nobody is tracking deadlines between jobs.
What actually pushes your fee up or down
Making Tax Digital for Income Tax is the biggest structural change affecting ongoing fees right now. From 6 April 2026, sole traders and landlords with qualifying gross income over £50,000 must use compatible software for quarterly updates, with the threshold dropping to £30,000 in April 2027 and £20,000 in April 2028. That shift moves accounting from a once-a-year task to a recurring quarterly one, and firms increasingly price for that frequency rather than for the old annual model.
HMRC’s own analysis flags likely transitional and continuing costs from lowering the mandation threshold, including software subscriptions and potential increases in agent charges where an agent handles the quarterly submissions on a client’s behalf.
Beyond MTD, the main cost drivers are:
- Transaction volume: more bank transactions, accounts, or sales channels means more reconciliation work.
- VAT registration: adds a recurring filing obligation and generally raises the monthly fee.
- Payroll and pensions: each employee added to a payroll run adds administrative time.
- Multi-channel ecommerce sales: selling across several marketplaces multiplies the reconciliation work behind a single VAT return.
- The state of your bookkeeping: clean, automated records cost less to process than a backlog needing sorting from scratch.
Pro Tip: Keep your bank feeds connected and your receipts logged weekly rather than quarterly. It is the single cheapest way to keep a quote near the lower end of the range.
What sole traders, freelancers and limited companies typically pay
The legal structure of your business is often the single biggest factor in your quote, before any of the finer details get discussed.
- Simple sole traders: with straightforward income and no VAT registration usually sit at the lower end of the fee range, and some may find it cost-effective to handle simple MTD quarterly updates themselves using accessible software, as HMRC’s own guidance for agents acknowledges is possible for those with simple income streams.
- Small limited companies: carry extra statutory obligations, including company accounts, corporation tax returns, and often payroll, which typically pushes fees higher than a comparable sole trader.
- Ecommerce, VAT-registered or multi-channel sellers: face higher fees because reconciling sales across several marketplaces, tracking inventory, and filing VAT accurately takes considerably more time than a single-income sole trader’s books.
Freelancers with a handful of clients and no VAT registration generally fall closer to the sole trader end of the scale, while anyone selling through multiple platforms or holding stock should expect a quote closer to the limited company end, regardless of legal structure.
How to budget, compare quotes and negotiate fairly
Getting comparable quotes means asking the same questions of every firm you speak to.
- Ask exactly what is included: bookkeeping frequency, VAT returns, payroll, and year-end accounts, so you are comparing the same scope.
- Ask which software is used: and whether integration with your existing tools, such as Xero or Link My Books, is included in the price.
- Ask what triggers an extra charge: catch-up bookkeeping, HMRC investigations, or ad hoc advice calls are common sources of hidden costs.
- Ask about onboarding: whether there is a setup fee, how long it takes, and what you need to provide.
- Request modular or banded pricing: tied to transaction counts rather than a flat guess, so the price scales fairly as your business grows.
Watch for vague scopes, onboarding fees with no cap, and quotes that omit MTD quarterly work entirely, since that is exactly the kind of task that tends to reappear as an unbudgeted extra later in the year.
What I have seen change with the shift to quarterly reporting
MTD has turned accounting from an annual event into a running conversation. Firms that once billed once a year for a set of accounts now price for four quarterly submissions plus the annual return, and ICAEW’s own practice guidance reflects that shift, pointing firms towards modular, transparent monthly pricing rather than a single annual invoice.
Higher fees earn their keep when they buy genuine ongoing advisory input, not just quarterly box-ticking. A dedicated accountant who flags a cashflow problem in March rather than at the January deadline is worth more than the invoice suggests.
— Kris
How eAccounts fits into this picture
If you would rather not chase quotes and compare scopes yourself, eAccounts offers monthly accounting packages from £29 per month, with every client paired with a dedicated accountant who handles bookkeeping, quarterly MTD updates, VAT, payroll, and year-end accounts as one ongoing service rather than a pile of separate invoices.
The service runs on Xero-based online accounting, so records stay current between quarters rather than being reconstructed at deadline time, which matters more than ever under MTD’s quarterly rhythm. Sellers running WooCommerce or Amazon stores get the same dedicated support, tailored to marketplace reconciliation. Getting a quote often starts with a consultation to scope transaction volume and VAT status. You can check pricing and start that conversation on the small business accounting packages page.
Where to check the detail yourself
- HMRC’s MTD agent toolkit explains what quarterly updates involve and who can realistically do them without an agent.
- Gov sets out the exact mandation thresholds and dates.
- ICAEW’s pricing guidance shows how practices are adjusting fee structures for the quarterly reporting era.
- Anyone dealing with specialist income, such as forex trading profits, should check how HMRC classifies that income before assuming a standard sole trader rate applies.
Sources
- Get ready for MTD: an agent toolkit — understanding Making Tax Digital for Income Tax
- Making Tax Digital for Income Tax: guidance for sole traders and landlords
FAQ
How much should I pay an accountant for my small business in the UK?
Most small businesses pay between roughly £75 and £500 a month for ongoing accounting, or £50 to £150 an hour for one-off work, depending on VAT status, payroll, and transaction volume. Some providers offer packages starting from a competitive monthly price, potentially covering bookkeeping, VAT, and year-end accounts as one service.
Do I need an accountant if I’m a sole trader?
There is no legal requirement for a sole trader to use an accountant, and HMRC’s own guidance notes that those with simple income streams may be able to handle quarterly MTD updates themselves using suitable software. Many still choose an accountant once VAT registration, payroll, or growing transaction volumes make DIY bookkeeping time-consuming or error-prone.
What are the typical fees for accountants to provide a tax return in the UK?
Self-assessment or company tax returns are often billed hourly, typically within the £50 to £150 hourly range, or bundled into a fixed monthly package that includes other compliance work. The exact figure depends on the complexity of your income sources and whether your records are already in order.
What is the average hourly rate for an accountant in the UK?
Reported hourly rates across UK accounting guides commonly fall between £50 and £150, though the figure varies by region, firm size, and the complexity of the work involved. Straightforward queries sit at the lower end, while specialist tax advice or investigation support tends to cost more.
