Contractors

How do accountants charge contractors?

Most contractor accountants charge a fixed monthly or annual fee that covers year-end accounts, corporation tax filing, payroll, VAT returns, and self-assessment. Monthly fees for a limited company contractor typically range from 100 to 250 pounds depending on the level of service, with some firms offering add-ons for IR35 reviews or bookkeeping. Comparing what is included in each package is more important than comparing headline prices alone.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

How do accountants charge contractors? - GoForma Contractors | UK Accountants & Tax Advisors

Key takeaways

Most contractor accountants use fixed monthly fees rather than hourly rates, giving you predictable costs and a clear scope of service.
Typical monthly fees for a limited company contractor range from 100 to 250 pounds, covering accounts, corporation tax, payroll, VAT, and self-assessment.
Cheaper packages may exclude services like VAT returns, bookkeeping support, or IR35 advice, so always compare the scope rather than just the price.
Some accountants charge a one-off setup fee of 50 to 200 pounds for company formation, HMRC registrations, and initial onboarding.
Accountancy fees are a fully allowable business expense and reduce your corporation tax bill.

Like with all service offerings, you can find contractor accountants at pretty much every price point. Some accountants will charge by the hour, some by piece of work or like ourselves, will offer a fixed monthly fee covering everything you will need in one clear package.

Frequently asked questions

What is a typical monthly fee for a contractor accountant?

Monthly fees usually range from 100 to 250 pounds for a standard limited company accounting package provided by a specialist contractor accountant. This typically includes annual accounts preparation, corporation tax filing, monthly payroll processing, quarterly VAT returns, and personal self-assessment completion. Premium packages with additional IR35 reviews and dedicated account manager support will cost more.

Do contractor accountants charge hourly or fixed fees?

The vast majority of contractor accountants charge fixed monthly or annual fees so you know exactly what you are paying each period with no surprises. Hourly billing is rare in the specialist contractor accountancy market. Some firms do charge per piece of work for one-off services such as IR35 contract reviews, which can cost between 50 and 150 pounds per review.

What should be included in a contractor accountancy package?

A comprehensive package should cover company annual accounts preparation, corporation tax return filing, monthly payroll for salary and dividends, quarterly VAT returns, personal self-assessment, and Companies House annual filing. You should also check whether the fee includes unlimited email and phone support for ad-hoc queries, as some firms charge separately for additional correspondence.

Are accountancy fees tax deductible for contractors?

Yes. The full cost of your accountancy fees is an allowable business expense that can be deducted for corporation tax purposes. This means the actual net cost of your accounting package to your company is lower than the headline monthly fee because the expense reduces your taxable profits. Your accountant records this deduction automatically in your company accounts each year.

Is it worth paying more for a specialist contractor accountant?

Usually yes. Specialist contractor accountants understand the nuances of IR35 compliance, optimal salary and dividend extraction strategies, and sector-specific expense claims that generalist practices often miss. A generalist accountant may overlook legitimate tax-saving opportunities that easily cover the difference in monthly fees. The best test is whether the accountant proactively advises you or simply processes your numbers.

Do accountants charge extra for company formation?

Some firms include company formation and all associated HMRC registrations in their onboarding process at no extra cost as part of winning your business, while others charge a one-off setup fee of 50 to 200 pounds. You should ask upfront during your initial consultation so you can accurately compare total first-year costs rather than just comparing the monthly recurring fee.

Can I switch accountant mid-year as a contractor?

Yes. You can switch your accountant at any time during the financial year, and your new accountant will handle the transition by requesting a professional clearance letter and full handover of records from the previous firm. The most convenient time to make the switch is at your company year-end, but a mid-year move is straightforward with proper paperwork and cooperation from both parties.

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