How much does a limited company accountant fees in the UK?
October 12, 2026
October 12, 2026
A limited company accountant in the UK typically costs £500 to £1,500 per year for annual accounts and a corporation tax return, or £100 to £400 per month for a full-service package that includes bookkeeping, payroll, VAT returns, Companies House filings and the director’s personal self assessment. The exact price depends on your company’s turnover, number of transactions and what services you actually need.
Limited company accounting fees more than sole trader accounting because there’s more to do. You’ve got statutory accounts for Companies House, a CT600 for HMRC, payroll for your director’s salary, potentially quarterly VAT returns and your personal tax return on top. An accountant who does all of this well earns their fee many times over.
Tax Return Assist offers fixed-fee limited company packages starting from £50 per month. You can get an instant quote based on your company’s needs, or read on to understand what the market charges and what you should expect at each price level.
This covers the preparation and filing of your statutory annual accounts with Companies House and your corporation tax return (CT600) with HMRC. You provide your bookkeeping records and the accountant prepares the filings. It doesn’t include bookkeeping, payroll, VAT or your personal tax return. This suits company directors who maintain their own books and just need the year-end compliance work done professionally.
Same as above, but includes the director’s personal self assessment return. Most company directors need to file a personal return because they receive dividends above the £500 allowance. Having one accountant handle both the company and personal returns means the numbers are consistent and nothing falls through the cracks.
The most common arrangement for small limited companies. Your accountant handles monthly bookkeeping (bank reconciliation, transaction categorisation, expense tracking), prepares your annual accounts and CT600, files your personal self assessment, runs your payroll (even if it’s just the director’s monthly salary) and files the Companies House confirmation statement. Most packages include unlimited email support so you can ask questions throughout the year.
If your company is VAT-registered (mandatory above £90,000 turnover), quarterly VAT returns add to the workload. This tier covers everything in the monthly package plus quarterly VAT preparation and filing, MTD-compliant record-keeping and VAT advice on complex transactions.
Some accountants offer a one-off setup fee for new limited companies. This covers company incorporation, HMRC registration for corporation tax and PAYE, setting up accounting software, initial payroll setup and advising on the optimal salary/dividend split. After setup, you move onto a monthly package.
At a minimum, your accountant should handle these annual obligations:
Statutory accounts for Companies House. Balance sheet, profit and loss account (where required) and notes. Filed within 9 months of your year end. Our guide to filing company accounts with Companies House explains what’s involved.
Corporation tax return (CT600) for HMRC. Calculating taxable profits, capital allowances, loss relief and the tax due. Filed within 12 months of your year end. Our CT600 guide covers every section of the form.
Director’s personal self assessment return. Reporting salary, dividends and any other personal income. Filed by 31 January following the tax year.
Payroll and RTI submissions. Running monthly payroll for director salary, filing Real Time Information with HMRC, issuing P60s at year end and handling any employee payroll if you have staff.
Companies House confirmation statement. Annual filing confirming the company’s registered details are up to date. £13 fee.
Beyond compliance, a good accountant also advises on salary/dividend split optimisation, tax planning, pension contributions, expense claims and when to consider structural changes.
Number of transactions. A company with 50 transactions per month costs less to service than one with 500. E-commerce businesses with hundreds of daily sales have significantly higher bookkeeping costs than consultancies invoicing 5 clients a month.
Turnover. Many accountants price partly based on turnover because higher revenue generally correlates with more complex accounts. A £50,000 turnover company is a simpler job than a £500,000 one.
Number of employees. Each employee adds payroll complexity: calculating PAYE, NIC, pension auto-enrolment, P11Ds for benefits in kind. A single-director company is straightforward. A company with 5 employees is noticeably more work.
VAT registration. Quarterly VAT returns add £400 to £800 per year to the fee. If you’re on the flat rate VAT scheme, the returns are simpler and cheaper. Standard VAT accounting with mixed supplies (some standard-rated, some zero-rated, some exempt) is more complex.
Complexity of accounts. Director loans, intercompany transactions, R&D tax credits, group structures, foreign income and property held through the company all increase the time needed and therefore the fee.
Record quality. Clean, reconciled records in Xero or FreeAgent cost less to process than a folder of unorganised receipts. If your accountant has to do your bookkeeping from scratch at year end, you’re paying for their time to do what you could have done throughout the year.
Location. London and South East accountants charge 20% to 30% more than firms elsewhere. Online accountants serving clients nationally tend to be closer to the lower end of each range.
Limited company accounting costs roughly 2 to 3 times more than sole trader accounting. A sole trader accountant might charge £150 to £400 for a self assessment return. A limited company accountant charges £500 to £1,500 for the equivalent year-end work because there’s more to do: statutory accounts, CT600, payroll, Companies House filings and the director’s personal return.
But the extra cost is usually offset by the tax savings. If you’re paying £1,000 more per year in accountancy fees but saving £3,000 to £5,000 in tax through the limited company structure, the net benefit is clear. The key is making sure your profits are high enough to justify the structure in the first place.
Our sole trader vs limited company comparison breaks down the numbers at every profit level.
Fixed fees with no surprises. You should know exactly what you’re paying before the work starts. Hourly billing creates uncertainty. Fixed monthly or annual fees mean you can budget accurately. Ask what’s included and what costs extra.
Proactive tax advice. A good accountant doesn’t just file your returns. They advise on the optimal salary/dividend split, pension contributions, the timing of dividend payments, capital allowances on purchases, and when changes in legislation affect your planning. If your accountant only contacts you at year end, you’re paying for compliance, not advice.
Cloud accounting software. Any accountant working with small limited companies in 2026 should be using cloud software (Xero, FreeAgent, QuickBooks or similar). This gives you real-time visibility of your finances, makes bookkeeping easier and ensures MTD compliance. If your accountant is still asking for spreadsheets or paper records, they’re behind.
Qualifications and professional body membership. ICAEW, ACCA, AAT or CIOT membership. Registered with HMRC as an agent. Regulated by a professional body with complaints procedures and professional indemnity insurance requirements. Not everyone who calls themselves an accountant has these.
Responsiveness. You’ll have questions throughout the year. Can you claim this expense? Should you take a dividend this month? How do you handle a new contract? An accountant who responds in 24 hours is worth more than one who takes 2 weeks, regardless of the fee difference.
No fixed quote. “It depends” without a follow-up number means you’ll get a surprise bill. Any accountant who knows their business can give you a fixed fee after understanding your company’s basics.
Unrealistically cheap. A full-service limited company package for £50 per month should raise questions. Are they cutting corners on the accounts? Will they be available when you need them? Do they have professional indemnity insurance? A too-cheap accountant who makes mistakes costs far more than a properly priced one who doesn’t.
No engagement letter. A professional accountant issues an engagement letter setting out exactly what services are covered, the fees, payment terms and both parties’ responsibilities. No engagement letter means no clarity about what you’re paying for.
Doesn’t ask about your business. If an accountant quotes a price without asking about your turnover, number of transactions, whether you’re VAT-registered, how many employees you have and what software you use, the quote is a guess. A proper quote requires understanding your situation.
Files without reviewing with you. Your accountant should walk you through the accounts and tax position before filing. You should understand your tax bill, the salary/dividend split, what allowances were claimed and what’s coming up next year. If they just file and invoice without a conversation, you’re missing the value.
Technically yes. Directors are legally responsible for the company’s accounts regardless. Some very small, simple companies manage their own bookkeeping and use software to prepare basic filings.
But the risk is higher than with sole trader accounting. Corporation tax calculations involve capital allowances, disallowable expenses, marginal relief and potentially director loan charges. Statutory accounts must comply with UK GAAP. Payroll must be reported correctly through RTI. Errors in any of these areas can trigger HMRC or Companies House penalties and enquiries.
For the vast majority of trading limited companies, the accountant’s fee is justified by the compliance risk alone, before you even factor in the tax savings from professional advice.
Tax Return Assist offers fixed-fee limited company accounting packages from £50 per month. Every package includes statutory accounts, CT600 filing, the director’s personal self assessment, payroll and Companies House filings. Bookkeeping and VAT services are available as add-ons.
They work with limited companies across Essex and London, from newly incorporated startups to established businesses. Call 02039377911, email contact@taxreturnassist.co.uk or use the online quote form for a clear price based on your company’s needs. No obligation.
Disclaimer: This article is for general information purposes only and does not constitute professional financial, tax or legal advice. Tax rules and rates can change, and individual circumstances can affect the amount of tax payable. Always check the latest HMRC guidance or speak to a qualified accountant or tax adviser before making tax decisions. Tax Return Assist accepts no liability for actions taken based on the information contained in this article.
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Tax Return Assist Ltd is a registered Companies House Authorised ACSP, professionally regulated under the Institute of Financial Accountants (IFA).
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