How much do Limited Company Accountants Cost?

Running a limited company in the UK comes with its fair share of responsibilities, and one of the first things many business owners do is use an accountant. You should expect great service, reliability, and professionalism from a good accountant. But before you dive in, it’s important to understand: how much does a limited company accountant cost? And what exactly are you paying for?

Knowing the cost of a limited company accountant is important because it directly impacts your monthly business expenses. In this guide, we break down how much limited company accountants typically cost in the UK. You’ll get to know the average monthly and yearly fees, what services are generally included, and the factors that can influence the price. Plus, we’ll share tips on how to get good value without cutting corners on support or compliance.

If you’re on the hunt for a trustworthy and budget-friendly option, GoForma provides expert online accounting services designed for small businesses, freelancers, and contractors, complete with fixed monthly prices and FreeAgent software included.

Let’s dive deeper into what you’re actually paying for and how to avoid overspending.

While there’s no strict legal requirement for every limited company to use an accountant, most company directors opt to do so, and for good reason.

Legal responsibilities of a limited company

If you run a limited company in the UK, you have several important responsibilities. These include:

• Preparing and filing annual accounts with Companies House
• Filing a Company Tax Return to HMRC
• Paying Corporation Tax on any profits
• Filing a confirmation statement each year
• Keeping accurate financial records
• Running payroll if you pay yourself or employees
• Submitting VAT returns (if VAT registered)

It becomes necessary to fulfill all the above responsibilities timely and accurately. Any mistakes or delays can lead to penalties or investigations, which no business wants to deal with.

Using Accountant for Limited Company vs DIY

Using an accountant can be a savvy choice for many limited company owners, but it’s not always necessary right off the bat. With a wide number of tools and apps at our fingertips, some business owners are left wondering if they can tackle the numbers on their own.

Let’s dive into the advantages and disadvantages of going solo versus bringing in a pro, and figure out when it’s wise to seek expert help.

DIY Accounting Using Software

Thanks to cloud-based accounting software like FreeAgent, QuickBooks, and Xero, managing your company’s finances on your own has never been easier.

For small businesses with simple financial needs, this approach can be quite effective, especially if you enjoy handling administrative tasks or want to keep expenses low in the beginning.

That said, even the most advanced software can’t substitute for professional advice. While it can help you stay organised, it won’t spot missed tax-saving opportunities or alert you to compliance risks.

When It’s Okay to Go Solo

You might be able to manage without an accountant if:

• You have very few transactions each month
• You’re not VAT registered
• You don’t run payroll
• You’re confident using accounting software
• You’re willing to spend time learning the basics

In this scenario, you could opt for a simple software plan, keep your records organised, and only seek one-time assistance during tax season, like filing your year-end accounts.

This method can be a great way to save money, especially if you’re just starting out or running a part-time business with limited activity.

When Using an Accountant Becomes a Must

As your business expands, your financial responsibilities will likely become more complex. That’s when having an accountant shifts from being a nice-to-have to a must-have. You should definitely think about using one if:

• Your turnover increases
• You take on employees
• You register for VAT
• You need tax planning advice
• You want help with cash flow or budgets
• You're too busy to stay on top of your books
• You want peace of mind knowing things are done right

A limited company accountant does more than just fill out forms, they help your business make informed decisions and ensure you’re compliant with HMRC and Companies House regulations.

Final Thought

While DIY accounting can work for small, simple or dormant businesses where you’re comfortable managing the admin, as your operations grow, bringing in an accountant can provide significant advantages, saving you time, minimising errors, and helping you retain more of your earnings.

It’s not just about keeping up with paperwork; it’s about creating a stronger, more efficient business.

Factors That Affect the Cost of a Limited Company Accountant

When it comes to using an accountant for your limited company, the cost can really vary from one business to another. There’s no fixed pricing as different companies require different level of services and support. Here are some key factors that can affect how much you’ll spend on accountancy services in the UK.

Business Complexity

One of the biggest things that affects cost is how complex your business is. For example:

• A small company with few monthly transactions and no employees will need less support than a larger business with regular sales, expenses, and payroll.
• If your business is VAT registered, your accountant will need to prepare and submit quarterly VAT returns, which adds to the workload.
• If you run payroll for yourself or your staff, this also adds time and responsibility, especially with Real Time Information (RTI) submissions to HMRC.

The more work involved, the higher the fee is likely to be. Accountants will usually ask about your transaction volume, software usage, and number of employees before giving a quote.

Location (London vs Regional Firms)

When it comes to choosing an accountant, their location can really impact the fees you’ll pay. Firms based in London usually charge more because of their higher operating expenses. In contrast, if your company is based in a smaller town or rural area, or if you’re open to using an accountant from another part of the UK, you may find more affordable options.

However, many businesses are now opting for online accountants, who provide services across the country at competitive rates. Since everything is managed digitally, you’re not restricted to just your local options. This gives you a wider range of choices and could help you save money without sacrificing quality.

Experience and Reputation of the Accountant

Like with any professional service, you’ll usually find that those with years of experience or a solid reputation tend to charge a bit more. Accountants who focus on specific industries, such as contractors, tech startups, or eCommerce might have higher fees, but they often deliver valuable advice that can save you money over time.

On the other hand, a newly qualified accountant or a smaller firm might offer more budget-friendly rates, but they may not provide the same depth of insight, especially if your finances are a bit more complicated.

Add-ons: Tax Planning, Bookkeeping, R&D Claims and More

While many accountants provide essential services in their standard packages, like annual accounts and Corporation Tax returns, you might find yourself needing to shell out a bit more for additional services, such as:

• Bookkeeping – daily, weekly, or monthly transaction recording
• Tax planning – advice on how to structure income, dividends, and expenses
• R&D tax credit claims – valuable for tech and innovation-led businesses, but time-intensive to prepare
• CIS returns – for contractors or subcontractors in construction
• Company secretarial services – help with changes to directors, shareholders, or share structure

These additional services can range from £20 to several hundred pounds each month, depending on how frequently you need them and the level of involvement required.

How Much Does a Limited Company Accountant Cost in the UK?

When it comes to using an accountant for your limited company, the cost can really depend on what your business needs, its size, and the level of support you’re looking for. Some companies might just need a little help with their year-end accounts, while others could require ongoing bookkeeping, payroll, VAT returns, and more.

In the UK, accountants typically offer fixed monthly packages or one-time annual fees. Let’s dive into the usual price ranges and what you can expect to get for your money.

Typical Monthly Costs

Many limited companies opt for a fixed monthly plan to help manage expenses throughout the year. Prices generally start around £60 per month and can climb to £250 or even higher, depending on the services you choose.

Here’s a rough guide based on the size of your business:

• Solo director with no employees
  Basic packages often start from £60 to £100 per month. These usually cover annual accounts, Corporation Tax returns, and the director's Self Assessment.
• Small business with a few employees
  If you need payroll, VAT filing, and more regular bookkeeping support, you can expect to pay between £100 and £175 per month.
• Growing business with multiple services
  For companies with more complex needs—like frequent transactions, CIS returns, or management accounts—fees can rise to £200 to £250+ per month.

Some firms even include cloud accounting software like FreeAgent or Xero in their monthly fee, which can help save on separate subscription costs.

Average Annual Costs

If you’d rather make a single payment each year, many accountants provide annual packages instead of monthly billing. These packages usually cost between £720 and over £3,000 annually, depending on what your business needs.

A standard annual package often includes:

• Preparation and filing of annual accounts
• Corporation Tax return (CT600)
• Director’s Self Assessment tax return
• Confirmation statement filing
• Basic support and advice throughout the year

If you require additional services like PAYE registration, payroll processing, quarterly VAT returns, or bookkeeping, expect the price to go up. These extras are often included in higher-tier packages or billed separately.

Some businesses kick off with a basic plan and then upgrade as their needs expand. Others prefer to go for a more comprehensive service right from the start to avoid the hassle of managing multiple providers or keeping track of deadlines.

At GoForma, we offer accounting packages that start from £79 per month, and one-off limited company year end accounts costs at £499 + VAT.

Breakdown of Accountancy Fees for Limited Company

Here’s a breakdown of common accountant fees for limited companies:

When you bring an accountant on board for your limited company, it’s about so much more than just getting your taxes done. Most accountancy packages offer a variety of services designed to keep your business running smoothly and in line with legal requirements.

So, what can you typically expect to find in a limited company accounting package in the UK?

• Limited company registration
• Online accounting software like FreeAgent, Xero, or Quickbooks
• Dedicated limited company accountant‍
• Payroll and RTI Submissions‍
• Year-end accounts preparation and filing‍
• Corporation tax return filing
• Director’s Self Assessment

Additional services that may be included with some additional fees or as add-ons: 

• Company formation service
• Confirmation statement
• London business address
• VAT registration and Quarterly VAT filing (if applicable)
• Bookkeeping Support
• Tax Planning Advice
  

At GoForma, we offer limited company accounting packages starting from only £79 + VAT. Also, GoForma includes FreeAgent for free with all accounting plans, saving you the hassle and extra subscription fees.

For many small business owners and directors of limited companies, opting for a fixed monthly package tends to be the smarter choice.

It brings you peace of mind, knowing that all your essential filings and support are taken care of without the stress of keeping an eye on the clock or worrying about escalating fees. Plus, it gives you regular access to advice, something that can really save you money over time.

If your business is on the rise, or if you appreciate having someone to turn to with questions throughout the year, a fixed fee package provides much better value compared to monthly billing.

And with online accountants like GoForma, these fixed monthly plans often come with extra perks like FreeAgent software, making it even simpler to manage your finances.

What should My Accountant Expect from Me?

As with any professional you work with, your accountant would expect you to be timely, responsive and transparent - particularly when you're asked to provide information near key tax deadlines.

Being timely and responsive gives your accountant everything they need to ensure you'll meet your tax payments and deadlines.

How to Choose the Right Limited Company Accountant Without Overpaying

Finding the right accountant can make a big difference to your business. It’s not just about price, it’s also about the support, advice, and peace of mind they bring.

Look for ACCA or ICAEW-Certified Accountants

Start by making sure the accountant is professionally qualified. Look for accountants who are members of ACCA (Association of Chartered Certified Accountants) or ICAEW (Institute of Chartered Accountants in England and Wales). These professionals are well-trained and adhere to strict standards.

Choosing a certified accountant gives you peace of mind, knowing they have the expertise to manage your company’s finances effectively.

Read Reviews and Check Case Studies

Take a moment to browse through client reviews on sites like Google or Trustpilot. These insights can really help you gauge how the accountant works - are they trustworthy? Do they respond promptly? Are their clients satisfied with the service they receive?

Don’t hesitate to ask if they can share any case studies or client success stories that demonstrate how they’ve assisted businesses similar to yours.

Transparent Pricing and No Hidden Fees

Clear pricing is essential. Seek out accountants who openly display their fees on their website or provide a quote upfront. Avoid firms that are vague or make you chase them for a price list.

Inquire whether their pricing is fixed or if you’ll be charged by the hour. A reputable accountant will be upfront about costs from the beginning, so you won’t face any surprises later on.

Ask What’s Included and Excluded

Before you commit, make sure to ask what services are included in the price and what isn’t. For example, some packages might cover your year-end accounts but charge extra for VAT returns or the director’s Self Assessment.

Getting this clarity early on helps you compare your options and avoid unexpected costs down the line.

Ask the Right Questions

Interviewing prospective accounting providers is important in evaluating whether they fit your company well.

Here are some questions that can help you make your decision: 

• Can you share your thoughts regarding a certain tax deduction?
• Can you provide feedback about my current accounting system and processes?
• What steps would you take to prepare me for the tax season?
• What steps would you take to improve my bottom line?
• Have you worked with businesses in my industry? Are you familiar with the challenges particular to my sector?
• Will I work with multiple accountants or be assigned a dedicated accountant?
• How will you ensure that I don't miss a deadline?
• How do you manage negative customer experiences or complaints? Can you share a challenging customer incident you've helped resolve?
• How accessible will my accountant be?
• How will they help me optimise my taxes?

Hidden Costs to Watch Out For

While many accountants provide simple and fixed pricing, some might sneak in extra charges for tasks that fall outside the usual package. It’s crucial to be aware of what could lead to additional fees so you’re not blindsided later on.

• HMRC Correspondence – Some accountants will charge you extra to handle communications with HMRC on your behalf, particularly if it goes beyond the standard filing duties.
• Amending Returns – If you find yourself needing to correct a previous return due to missing information or mistakes, be prepared for a separate fee.
• One-off Advice – Tax planning or guidance on business structure might not be part of your monthly plan.
• Extra Charges for Urgent Filings – If you need to file something in a hurry, like overdue accounts or a last-minute tax return, you could face a rush fee. These can be significantly higher than regular prices, especially as the deadline approaches.
• Year-End or Director’s Tax Return Fees – Not every accountant includes the director’s Self Assessment or year-end Corporation Tax filing in their monthly packages. Some treat these as one-off services that come with an additional fee, which can add anywhere from £100 to £250 to your annual costs.
• Software Subscription Add-Ons – Many accountants provide cloud accounting tools like FreeAgent, Xero, or QuickBooks. While some include this in their package, others may charge extra, either on a monthly or yearly basis. Make sure to ask whether the software cost is included or if it’s something you’ll need to cover separately.
• Company Secretarial Charges – Some accountants will charge for company secretarial services, such as updating Companies House records, adding or removing directors, or filing confirmation statements. These tasks don’t take long, but some firms may charge between £50 and £150 per job.

Price isn't Everything; Customer Support is Key

When you're looking at potential providers, remember that price is just one piece of the puzzle. Since the costs from top providers usually don’t vary much, other aspects like customer service, become even more crucial.

To figure out if an accounting provider has reliable customer support, you can take a few steps. Start by checking out online reviews on various platforms, and see if you can reach their support team through different channels, such as online forms, email, phone, and social media.

Try sending a couple of questions their way to check how quickly they respond, and avoid providers that don’t make their contact information easy to find.

If you’re searching for an easy and budget-friendly way to handle your company’s finances, look no further than GoForma. We provide online accounting services tailored specifically for small businesses, freelancers, and contractors.

What You Can Expect from GoForma:

• Fixed monthly pricing – No hidden fees, no surprises
• FreeAgent software included – Provided at no extra cost
• Expert UK accountants – Get help from real people who understand your business
• All-in-one support – Annual accounts, Corporation Tax returns, VAT, payroll, and more

Whether you’re just starting out or expanding your business, GoForma makes it easy to keep your accounts in check.

Want to speak with someone first? You can book a free accounting consultation with our trusted accountant. This is your chance to ask questions, discuss your business needs, and find out which package aligns best with your goals and budget.

Save time, ease your stress, and concentrate on what you do best, we’ll take care of the numbers for you!

FAQs on Accountancy Charges for Limited Companies

What factors can influence the cost of a small limited company accountant?

‍‍Factors such as the complexity of the business, volume of transactions, industry-specific requirements, company size and revenue, and geographic location can affect the cost of an accountant.

Are accounting services typically charged based on hourly rates or fixed fees?

Accounting services can be charged based on hourly rates, monthly or annual retainer fees, or fixed fees for specific services or packages. The charging method may vary among accountants.

What is included in the typical service packages offered by small limited company accountants?

‍Accountant packages can vary, but they often include bookkeeping, financial statement preparation, tax planning and compliance, and general business advisory. Additional services or add-ons may incur extra costs.

How can I evaluate the right accounting services for my small limited company?

‍Evaluating accounting services involves assessing the specific needs of your company, comparing the services and expertise offered by different accountants, considering client testimonials and reputation, and conducting interviews or consultations with potential candidates.

Can a small limited company accountant provide long-term cost savings?

Yes, a competent and cheap accountant for limited company can lead to long-term cost savings by optimizing financial management, identifying tax-saving opportunities, providing strategic advice, and ensuring compliance with legal and regulatory requirements.

Is an accountant tax-deductible for limited companies?

Yes, accountant fees are tax-deductible for limited companies as they count as an allowable limited company expense.

Can I switch my accountant during the tax year?

Yes, you can switch your accountant during the tax year. GoForma makes the process simple by handling the handover and contacting your previous accountant for a smooth transition.

Do I need an accountant if I use accounting software?

Using accounting software helps with bookkeeping, but you may still need an accountant for tax returns, compliance, and expert advice.

What's the average monthly fee for an accountant for a limited company in the UK?

The average monthly accountant fee ranges from £60 to £250+. At GoForma, you can get reliable and affordable accounting and bookkeeping services for your limited company. Our plans start from just £79 per month, giving you everything you need to manage your business finances smoothly.