- Most small limited companies pay between £60 and £350 a month for accountancy, depending on turnover, VAT, and payroll.
- Fixed-fee billing makes budgeting predictable, while hourly billing leaves you exposed to unexpected charges.
- The headline price means little until you check exactly what compliance work it includes.
Most limited companies pay an accountant for limited company cost of between £60 and £350 a month, depending on turnover, VAT registration, payroll, and how many transactions run through the business.
Annually, that’s roughly £720 to £4,200, though basic compliance-only cover starts lower and complex businesses pay more. The wide gap isn’t random. It tracks the amount of work your accounts actually need. Get the pricing structure right and you’ll know exactly what you’re paying for, with no January surprises.
What does a limited company accountant actually do for the fee?
A limited company accountant handles the statutory work your company is legally required to file, plus the day-to-day support that keeps you compliant year-round.
At a minimum, that covers your annual accounts filed with Companies House, your Corporation Tax return (CT600) to HMRC, and your confirmation statement. Most packages also include director payroll, a director’s self assessment, and access to cloud software like Xero or QuickBooks.
Here’s the part that trips people up. Two quotes at the same monthly price can cover completely different things. One might bundle your personal tax return and VAT; another treats both as paid extras. The number on the quote tells you almost nothing until you see the inclusions list.
If you’ve just formed your company, our guide on what to do after forming a company walks through the filings you’ll need cover for.
What does an accountant cost for a limited company each month?
Typical monthly fees for a UK limited company sit between £60 and £350, and the band you land in depends almost entirely on complexity rather than the accountant’s postcode.
Here’s how the ranges break down in 2026:
|
Company profile |
Typical monthly cost |
What it usually covers |
|
Dormant or barely trading |
£10 to £40 |
Dormant accounts, confirmation statement |
|
Simple trading, no VAT, no staff |
£60 to £120 |
Annual accounts, CT600, director payroll, one self assessment |
|
VAT registered with basic payroll |
£120 to £250 |
Above plus VAT returns and PAYE |
|
Growing, multiple staff, higher turnover |
£250 to £350+ |
Full compliance, bookkeeping, regular advice |
These are ongoing fixed monthly ranges. If you only need one-off year-end accounts, expect a single fee of roughly £500 to £1,200 + VAT instead.
A quick tip: before you request quotes, write down exactly what you need covered (VAT, payroll, bookkeeping, personal tax). It’s the only way to compare firms like for like rather than being dazzled by a low headline number.
For a fuller breakdown of every running expense beyond accountancy, see our breakdown of the cost of running a limited company.
What makes accountant costs vary so much?
Accountant costs vary because the work behind them varies, and a handful of specific factors push your fee up or down.
The main drivers are:
- Turnover and transaction volume. More invoices and bank transactions mean more bookkeeping time.
- VAT registration. Quarterly VAT returns are extra work, so VAT-registered companies pay more.
- Payroll. Usually priced per employee per month, often with the first few directors bundled in.
- Complexity. Multiple income streams, property, or e-commerce across platforms adds specialist time.
- Bookkeeping standard. Messy records mean clean-up hours on top of the quoted fee.
Does location still affect the price?
Location matters far less than it used to, thanks to online accounting.
A London high-street firm often charges a premium for the postcode and office overheads. Online providers serving the whole of the UK strip that out, so a VAT-registered company pays roughly the same whether the director is in Manchester or Mayfair. For most small companies, the deciding factor is what’s included, not where the accountant sits.
Fixed fee or hourly billing, which is better for a limited company?
Fixed-fee billing is the better choice for most limited companies because it makes your accountancy cost predictable and removes the fear of a surprise invoice.
You pay a set monthly amount and know exactly what’s covered. That helps cashflow and, just as importantly, means you’ll actually pick up the phone when you need advice, rather than watching the clock tick on an hourly rate.
Hourly billing still has its place. Historically firms charged per hour, and it can suit a business with genuinely unpredictable needs, one year needing only year-end help, the next needing full bookkeeping. The trade-off is that costs become hard to forecast, and a quick query can turn into a line on your next bill.
|
Billing model |
Best for |
The risk |
|
Fixed monthly fee |
Predictable compliance needs |
Extras outside the package cost more |
|
Hourly |
Irregular or one-off work |
Costs are hard to forecast |
Cloud software like Xero has driven the shift to fixed fees by cutting the manual work, which is why most modern firms now price this way.
What hidden costs should I watch for?
The hidden costs are the services a low headline fee quietly leaves out, and they’re where a cheap quote turns expensive.
Watch for these common extras:
- Director’s self assessment charged separately, often £10 to £15 a month per director.
- VAT returns billed on top rather than included.
- Payroll priced per employee, so costs climb as you hire.
- Bookkeeping clean-up billed hourly when your records are disorganised.
- Software subscriptions charged separately at £15 to £40 a month if not bundled.
- Company formation or registered office fees at the start.
None of these are unreasonable in themselves. The problem is only discovering them six months in. Always ask a firm to confirm in writing what sits inside the fee and what doesn’t. If you’re weighing up the structure entirely, our comparison of sole trader vs limited company helps you sense-check whether the accountancy cost is worth it for your setup.
What do LTD Companies’ accounting plans cost?
LTD Companies offers fixed, transparent accounting packages so you know your cost upfront, with no hidden charges bolted on later.
Incorporation-plus-accounting bundles start from £542 + VAT for Business Compliance and £807 + VAT for Full Management, which combines company formation with ongoing compliance in one structured plan. There’s currently a 50% off annual accounting promotion running too.
Because inclusions differ by plan, the clearest way to see exactly what you’ll pay is the live accounting services and pricing page, which shows the current figures and what each package covers.
How LTD Companies helps with limited company accounting costs
Working out what an accountant should cost is only stressful when the pricing is vague. Fixed, transparent fees fix that.
LTD Companies gives you a clear monthly figure, a defined list of what’s included, and in-house UK accountants rather than outsourced support. You budget once and get on with running the business, knowing the compliance is handled and the bill won’t move.
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FAQs on accountant for limited company cost
Is it worth paying for an accountant for a small limited company?
Yes, for most directors. A limited company must file statutory accounts, a Corporation Tax return, and a confirmation statement, and mistakes risk penalties. For £60 to £120 a month, an accountant handles the compliance and usually finds tax savings that offset much of the fee. It’s rarely worth the risk of filing complex statutory accounts yourself.
Can I do my own limited company accounts instead?
Yes, there’s no legal requirement to use an accountant. You can file accounts and your CT600 yourself through HMRC and Companies House. In practice, most directors don’t, because the statutory rules are detailed and errors trigger fines. Doing it yourself makes most sense for a dormant or very simple company with almost no transactions.
How much does a dormant company accountant cost?
A dormant company costs far less, typically £10 to £40 a month or a small annual fee. A dormant company has no significant transactions, so the accountant only files dormant accounts and the confirmation statement. Self assessment and other services are usually charged separately, as they fall outside standard dormant cover.
Why are some limited company accountant quotes so cheap?
A cheap quote usually covers less. A £30 monthly headline might include only year-end accounts and the CT600, leaving VAT, payroll, personal tax, and bookkeeping as paid extras. Once those are added, the real cost often matches a mid-range fixed-fee plan. Always compare the full inclusions list, not the advertised starting price.
Does an accountant’s fee include VAT returns?
Not always. Some fixed-fee plans bundle quarterly VAT returns; others charge them separately because not every company is VAT registered. If your turnover is near or above the £90,000 VAT threshold, confirm whether VAT filing sits inside the quote before signing up, as adding it later can raise your monthly fee noticeably.
How much does payroll add to accountant costs?
Payroll is usually priced per employee per month, commonly £5 to £15 each, with the first one or two directors often bundled into the base fee. Pension auto-enrolment adds a small amount on top. A single-director company pays little or nothing extra, while a growing team sees payroll become a meaningful part of the monthly bill.
Can I switch accountants if mine is too expensive?
Yes, and it’s more straightforward than most directors expect. Your new accountant handles the handover, requesting your records and filing history from the old one through a standard professional clearance process. The main things to check are your notice period and whether any work is mid-completion, so nothing falls through the gap during the move.
