How Much Does an Accountant Cost for a Limited Company? (UK 2026)

If you’ve set up a limited company — or you’re about to — one of the first questions is the practical one: what does an accountant actually cost? The honest answer for most small UK companies is £100 to £350+ a month for an ongoing package, or roughly £750 to £2,000 a year if you only need year-end accounts and a Corporation Tax return filed.

That’s a wide range, and the monthly number on its own doesn’t tell you much. Below is a realistic breakdown of 2026 prices, why a company costs more than a sole trader, what a good fee should include, and what to check before you sign — so you can compare quotes properly and avoid a surprise bill.

How much does an accountant cost for a limited company?

Here’s a realistic guide to what UK limited companies pay in 2026. Prices vary by accountant and by how much work your company involves, but these are typical fixed fees:

A contractor or one-person company with clean records and simple affairs often sits at the lower end — typically £90 to £180 a month. A growing company with VAT, several employees and a higher volume of transactions sits at the upper end, or beyond it.

Some accountants still bill by the hour — usually £50 to £150 an hour for general work, and more for specialist tax advice. The risk there is predictability: a “quick question” can quietly become a line on your invoice.

Want a number for your company rather than a range? You can get a fixed-price quote in about 24 hours — no obligation.

Why a limited company costs more than a sole trader

If you’ve come from being self-employed, expect to pay more as a company — and it’s worth understanding why. A limited company simply has more statutory work attached to it:

• Statutory year-end accounts — these follow a specific format and are filed at Companies House as well as used for your tax. A sole trader doesn’t file accounts publicly at all.
• A Corporation Tax return (CT600) — filed with HMRC, with the tax calculated and paid separately from your personal tax. A sole trader just reports profit through Self Assessment.
• An annual confirmation statement — a yearly filing to Companies House confirming your company details. (We explain it in plain English in the confirmation statement guide.)
• Director payroll and dividends — most directors take a small salary plus dividends, which means running PAYE and planning the split tax-efficiently. That’s ongoing work a sole trader doesn’t have.

So the higher fee isn’t a markup — it reflects genuinely more filing and compliance. If you’re still weighing up the structure itself, our sole trader vs limited company guide walks through the trade-offs, and our sole trader cost guide shows the cheaper end of the scale for comparison.

What a good limited company package should include

A vague quote is a red flag, because two fees that look far apart are often just including different things. For a small company, a clear fixed monthly fee should state whether it covers:

• ✅ Statutory year-end accounts
• ✅ Corporation Tax return (CT600)
• ✅ Annual confirmation statement
• ✅ Director payroll (and PAYE for any staff)
• ✅ VAT returns, if you’re registered
• ✅ Bookkeeping, or a review of yours
• ✅ Accounting software (Xero, QuickBooks or FreeAgent)
• ✅ Dividend and salary planning
• ✅ A named accountant who answers calls and emails — not a call centre or ticket queue
• ✅ Unlimited questions through the year — not charged per call

If one quote is noticeably cheaper, check whether it quietly leaves several of these out and bills them separately later.

What drives the price

Two companies with the same turnover can pay very different fees, because the cost tracks how much work is involved, mainly:

• VAT registration — once turnover passes the £90,000 VAT threshold you must register, adding quarterly returns (and more frequent filing under Making Tax Digital).
• Payroll — the more people on the payroll, the more it costs (it’s usually priced per payslip).
• Bookkeeping — tidy digital records are cheaper to work with; a shoebox of receipts costs more in time.
• Transaction volume — more invoices, expenses and bank lines mean more to reconcile.
• How behind you are — catch-up work for late or missing records is the most common reason a quote lands higher than expected.
• Extras like references or ad-hoc advice — mortgage references, tax planning sessions and one-off projects may sit outside a standard package.

Monthly fixed fee vs a one-off year-end bill

There are two common ways to pay, and the right one depends on how much support you want:

• Fixed monthly fee — you pay the same agreed amount each month and know exactly what’s included. It spreads the cost, usually bundles in bookkeeping and year-round support, and keeps you on top of deadlines. You can ask a question without watching a clock.
• One-off year-end fee — you pay once a year for accounts and the Corporation Tax return. This can suit a very simple or near-dormant company, but you’re more on your own day to day, and the bill can be harder to predict if your records need work.

For most active companies, a fixed monthly fee removes the year-end surprise and means there’s someone who already knows your business when a question comes up. You can see exactly what our fixed pricing includes.

Is an accountant worth it for a limited company?

For most small companies, yes — and the honest test is whether they save or protect more than they cost:

• Tax efficiency — the right salary/dividend split, claimed expenses, and reliefs you might otherwise miss.
• Avoided penalties — late accounts at Companies House and a late CT600 both trigger fines that stack up quickly. Staying on time alone often covers the fee.
• Time back — hours you’d spend on bookkeeping, deadlines and HMRC correspondence, returned to running the business.
• Fewer costly mistakes — a wrong VAT scheme or a misreported figure can cost far more than the fee to fix.

A dormant company, or one with a single director and almost no activity, may genuinely manage alone. Once you’re trading, paying yourself, or registered for VAT, an accountant usually earns their fee back.

What to check before you sign

A few targeted questions quickly separate a transparent company package from a vague one:

1. Is this a fixed price, or could it change during the year?
2. Does it include the confirmation statement and director payroll, or are those extra?
3. Is VAT included if I’m registered — and what does MTD support look like?
4. Who will actually do my work, and how quickly will you reply?

For the full 10-question checklist and how to weigh up a firm beyond price, see how to choose an accountant, and our wider guide to how much an accountant costs.

The bottom line

Most small UK limited companies pay £100–£350+ a month, or £750–£2,000 a year for year-end accounts and a Corporation Tax return on their own. A company costs more than a sole trader because there’s genuinely more statutory work — but the right accountant should save you more than they charge, and keep every deadline off your plate.

What matters most isn’t the cheapest quote — it’s fixed, transparent pricing with no surprise fees, and a real person you can actually reach. If you’d like to know exactly what your company would cost, request a fixed-price quote and I’ll come back to you within 24 hours, or take a look at our simple monthly pricing.