How much should an accountant cost for a limited company in the UK? There is no single correct fee because two companies of the same age can require very different amounts of work. A clean, low-activity consultancy is not the same assignment as a VAT-registered retailer with several bank and payment accounts.
The useful question is not simply “Who is cheapest?” It is “What work is included, what assumptions support the fee and what might cause it to change?”
What determines a limited company accountant’s fee?
Transaction volume
The number of bank, card and platform transactions affects bookkeeping time. Thirty straightforward bank transactions are different from hundreds of sales, refunds, fees and transfers spread across several systems.
Quality of the records
Current, reconciled records normally cost less to work with than incomplete spreadsheets or software containing duplicated and unreconciled entries. Catch-up bookkeeping may be quoted separately when substantial repair work is needed.
VAT registration
VAT adds regular record-keeping, review and filing responsibilities. Complexity can increase where a business has mixed VAT rates, exempt income, imports, exports, marketplace transactions or special schemes.
Payroll
A director-only payroll is typically simpler than payroll for a changing workforce with pensions, statutory pay, benefits or irregular hours. Confirm how many employees and payroll runs the package covers.
Business model and complexity
Construction, e-commerce, property, international trade, regulated services and businesses with stock or multiple income streams can need specialist handling. The legal structure, number of directors and shareholders, associated companies and financing arrangements can also affect the work.
What should a monthly limited-company package include?
A package may include some or all of the following:
- bookkeeping and bank reconciliation;
- annual statutory accounts;
- the Company Tax Return and Corporation Tax computation;
- a confirmation statement;
- director or employee payroll;
- VAT returns;
- software support;
- deadline reminders and routine queries;
- management accounts or cash-flow forecasting.
Do not assume that “accounts included” means bookkeeping is included. Some providers prepare annual accounts from records supplied by the client. Others keep the books throughout the year. Ask exactly who is responsible for each stage.
Base & Balance starting packages
| Package | Starting price | Designed for |
|---|---|---|
| Company Essential | £79 + VAT per month | New and low-activity limited companies, including bookkeeping up to the agreed allowance |
| Company Plus | £149 + VAT per month | Trading companies requiring monthly bookkeeping, VAT and a small payroll |
| Growth | £249 + VAT per month | Businesses needing management accounts, cash-flow visibility and regular review |
These are published starting prices, not automatic quotations. The written fee depends on transaction volume, payroll size, VAT requirements, record quality and complexity. Accounting software is paid separately unless a quotation expressly says otherwise.
You can review the current package details on our accounting pricing page.
Monthly support versus annual filing-only work
An annual filing-only service can suit a genuinely simple company whose directors maintain accurate records themselves. Ongoing support is more appropriate when the business needs bookkeeping, VAT, payroll, cash-flow help or regular answers.
Monthly fees can look higher than a year-end-only quote because the scope is different. The comparison should consider the entire year’s work, not just the final accounts.
Questions to ask before accepting a quotation
- Is bookkeeping included? If so, what transaction, account and platform limits apply?
- Are annual accounts and the Company Tax Return included?
- Is the Companies House filing fee included where relevant?
- How many payroll employees and runs are covered?
- How many VAT returns are included, and does the fee cover bookkeeping for them?
- Who pays for Xero, QuickBooks, FreeAgent or other software?
- Is catch-up work charged separately?
- Who will answer routine questions, and how quickly?
- What events trigger a price review?
Warning signs in a very cheap package
A low price is not automatically a problem. It may reflect an efficient service for a genuinely simple company. Be cautious, however, if the scope is vague, bookkeeping is assumed to be perfect, communication is heavily restricted or essential filings are optional extras that were not clearly disclosed.
Likewise, avoid paying for services your company does not need. A new consultancy with a small number of transactions may not need monthly management accounts and a complex forecast.
How to obtain an accurate accounting quote
Provide the accountant with:
- the company number and incorporation date;
- the trading start date and business activity;
- expected monthly transactions and bank accounts;
- whether the company is or expects to be VAT registered;
- the number of people on payroll;
- software currently used;
- whether earlier bookkeeping needs attention;
- any overseas, property, stock or financing activity.
A clear quote should state the work, frequency, assumptions, exclusions, VAT and software position. That clarity matters more than a headline price.
This article provides general information. Fees and service requirements depend on each company’s facts.