How Much Do Accountants Charge for VAT Returns in the UK?

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If you are a small business owner or self-employed worker in the UK, keeping on top of your taxes is vital. If your business turnover goes over the VAT registration threshold, you must sign up for VAT and send regular returns to HMRC. But how much does it cost to get professional help with this?

In the UK, an accountant will typically charge between £50 and £250 per VAT return if you pay them on a one-off or quarterly basis. If you prefer a monthly accounting package that includes your VAT submissions, it usually adds about £30 to £100 per month to your regular bill. The exact price you pay depends on how many sales transactions you have, how complicated your business structure is, and whether your daily financial records are tidy.

What Changes the Price of a VAT Return?

Not every business pays the same amount for VAT support. Several key things can drive your costs up or down:

1. The Number of Transactions: If you run a small consulting firm with five invoices a month, your VAT return will be quick and cheap to check. If you run a busy shop with thousands of customer transactions, sorting out the figures will take much longer, which increases the price.
2. Business Complexity: Selling goods abroad, dealing with VAT-exempt items, or using special options like the Flat Rate Scheme means more technical work for an expert.
3. The State of Your Records: If you hand over a messy pile of paper receipts at the last minute, your accountant will have to spend hours organising them before they can even start the return.

To see how these costs fit into your wider business expenses, read our detailed breakdown on Accountant Fees in the UK: What Should a Small Business Expect to Pay?. Understanding general rates can help you figure out if the quote you received is fair, or if you need to ask yourself: Accountant Fees for Small Business: Are You Paying Too Much?.

Accountant vs. Bookkeeper: Who Should You Hire?

You do not always need a fully qualified chartered accountant to prepare your VAT returns. Many small business owners choose to work with a bookkeeper instead. Bookkeepers deal with day-to-day data entry and are perfectly capable of compiling and submitting your VAT paperwork. They also tend to charge a lower hourly rate than accountants.

When deciding who to hire, it helps to understand how their roles differ. Check out our guide on Accountant vs Bookkeeper: Which Service Does Your Business Actually Need? to find the right fit for your daily operations.

VAT and Making Tax Digital (MTD)

In the UK, you can no longer submit VAT returns using old-fashioned paper forms or simple manual boxes on the government website. Under HMRC rules, all VAT-registered businesses must follow the Making Tax Digital framework. This means you must keep digital records and use approved software to send your information over safely.

Because of these rules, accountants now use specialized software to handle your filings, which can sometimes alter how they structure their fees. For a closer look at what this digital switch means for your wallet, see our article on What will accountants charge for MTD?.

Can You Claim Back Accountant Fees?

The good news is that hiring an expert to do your taxes can actually save you money on your tax bill. Professional fees are usually looked at as a normal business expense. If you want to make sure you are handling this correctly and cutting your annual tax bill legally, you can find out more in our post: Are Accountant Fees Tax Deductible uk.

Summary

For most small UK businesses, paying £50 to £250 per quarter is a small price to pay for the peace of mind that your VAT return is completely correct and submitted on time. To keep your costs as low as possible, try to use digital accounting software to track your invoices and keep your receipts organised throughout the year.

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