Accountant Fees for Small Business: Are You Paying Too Much?

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Are you paying too much? The short answer: If you run a standard UK limited company and pay more than £300 to £400 a month for basic services, or if you are a sole trader paying over £150 a month, there is a good chance you are overpaying.

However, the cheapest option isn’t always the best, and very low fees often mean hidden costs later. To figure out if your current deal is fair, let’s break down the average accountant fees for small business in the UK for 2026.

Average Monthly Costs by Business Type

How much work your accountant does depends entirely on how your business is set up. Here is a realistic look at what you should expect to pay each month:

Business Type	Typical Monthly Fee	What It Usually Covers
Sole Trader	£50 – £150	Self Assessment tax return, basic accounting software, general tax advice.
Small Limited Company	£150 – £300	Year-end accounts, Corporation Tax filing, director payroll, basic VAT returns.
Growing Business (5+ staff)	£300 – £500+	Full staff payroll, complex VAT, regular performance reports, hands-on advice.

What Actually Pushes Your Bill Up?

If your quote is at the higher end of those ranges, it is usually because of one of these four things:

• Your Business Structure: It takes much more work to manage a Limited Company than a Sole Trader. Limited companies have strict rules and must file specific paperwork with both HMRC and Companies House.
• VAT Registration: Once your business earns over £90,000 in a year, you must register for VAT. This means filing a return every three months, which creates extra work for your accountant.
• Having Employees (Payroll): Running a payroll means calculating tax and National Insurance for every staff member, plus handling pension rules. Accountants usually charge an extra £5 to £15 per employee each month for this.
• The “Shoebox” Tax: If you hand your accountant a messy pile of paper receipts or an unorganised spreadsheet, they have to spend hours sorting it out. Keeping your own records clean using modern software will save you money.

Fixed Fees vs. Hourly Rates

Most modern accountants now charge a fixed monthly fee. This is generally the safest option for a small business. You know exactly what money is leaving your bank account each month, and you won’t get a surprise bill just because you called them to ask a quick question.

Hourly rates (which typically sit between £50 and £150 an hour) are normally only best for one-off jobs, like fixing a massive error or helping you handle an investigation from HMRC.

When Is Paying More Worth It?

It is easy to look at an accountant as just another monthly bill, but a good one should actually save you money in the long run.

While a cheap, automated service might just tick the legal boxes, a proactive accountant will look at your numbers and tell you how to lower your tax bill. They make sure you are claiming every legal expense, they stop you from getting nasty fines for late paperwork, and most importantly, they give you your weekends back so you can focus on actually running your business.

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