Plain-English bookkeeping for small UK businesses

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How much does an accountant cost in London?

Typical London fees for tax returns, year-end accounts, VAT and payroll, what moves the price, and how to compare quotes fairly.

Accountancy fees vary more than most people expect. Two businesses with the same turnover can pay very different amounts, because the price follows the work: how many returns you need, how complicated your income is and how tidy your records are. Knowing the typical ranges helps you judge whether a quote is reasonable before you agree to it.

Typical accountancy fees in London

Across Camden and central London, accountants usually charge around:

  • £120 to £350 for a Self Assessment tax return
  • £800 to £2,500 a year for a limited company's year-end accounts and Corporation Tax return
  • £80 to £250 for each VAT return
  • £50 to £150 a month to run payroll for a small business
  • £80 to £200 an hour for one-off advice

If you are also paying someone to keep your books each month, that is usually a separate line in the quote. Our guide to what a bookkeeper costs in London covers those ranges.

What each fee usually covers

Self Assessment return

For sole traders, landlords and directors.

What's included

  • Income and allowable expenses worked out from your records
  • The return prepared and sent to you to approve
  • Filed with HMRC, with your payment dates confirmed

Year-end accounts and Corporation Tax

For limited companies.

What's included

  • Annual accounts prepared from the company's books
  • Corporation Tax worked out and the CT600 return filed
  • Accounts filed at Companies House

VAT returns

For VAT-registered businesses.

What's included

  • Each return prepared from reconciled figures
  • Checked before it goes to HMRC
  • Filing dates tracked for you

Payroll

For businesses with employees, including directors on a salary.

What's included

  • Pay, tax and deductions worked out each pay period
  • Payslips and submissions to HMRC on or before each payday
  • Starters, leavers and year-end P60s handled

What pushes the price up or down

The same handful of things decide where you land in those ranges:

  • How many income sources you have. A single self-employed income is quicker to report than self-employment plus rental property plus dividends.
  • Whether you trade as a limited company. A company has its own accounts and tax return, and its directors usually need personal returns as well, so it costs more than a sole trader.
  • How tidy the records are. Books that are reconciled every month turn a year-end into a review. A bag of receipts in January turns it into a rebuild.
  • VAT and payroll. Each adds regular filings through the year, on top of the annual returns.
  • How close to the deadline you come. Work handed over in the last weeks before 31 January is harder to fit in, and some practices charge more for it.
  • Advice beyond the returns. Planning how to pay yourself, or a forecast for the bank, is extra work beyond the filing.

The cheapest way to bring the fee down is usually the simplest: keep business and personal spending in separate accounts, keep receipts as you go, and hand records over early.

One-off fees or a monthly package

Some accountants charge a one-off fee each year for a defined job, such as a tax return or a set of year-end accounts. That can suit a simple situation where you keep your own books well.

Others agree a fixed monthly fee that covers the books, the returns and questions through the year. The total for the year can be similar, but the cost is spread evenly, there is no large bill in January, and you are not put off asking a quick question because the clock is running.

Whichever way it is priced, check exactly what is included. A low headline fee for the company accounts can grow quickly once the director's tax return, VAT returns and payroll are added as extras.

Accountant or bookkeeper: what you are paying for

A bookkeeper keeps the records: transactions coded, bank accounts reconciled, invoices recorded. An accountant turns those records into the returns and accounts that HMRC and Companies House need, and takes responsibility for getting the figures right. Many small businesses need both jobs done, and using two separate firms means paying for the handover between them.

We are an accountancy practice as well as bookkeepers. We prepare and file Self Assessment returns, VAT returns, year-end accounts and Corporation Tax returns, with year-end and statutory work completed by the Chartered Accountant on our team, built from books kept by our AAT-qualified bookkeeper. See our bookkeeping services and year-end accounts and Corporation Tax pages for what that covers.

Questions to ask before you agree a fee

  • Which returns and filings are included, and which are charged separately?
  • Is the director's Self Assessment return part of the company fee?
  • Who prepares the work, and is it reviewed by a qualified accountant?
  • How are extra jobs priced, and will I be told before the work is done?
  • What happens to the fee if my business grows or takes on staff?
  • How much notice do I need to give if I want to move?

If you already have an accountant and these answers are not clear, our guide to switching accountants explains how a move works at any time of year.

How we price our work

We do not publish a price list, because the work varies too much from one business to the next. Instead, we agree a fee with you before anything starts.

  1. Free 20-minute call

    We look at how you trade, where your records are and which returns you need.

  2. Fixed monthly fee

    We agree one fee up front for the books and returns you need, with no hourly billing.

  3. Through the year

    Your books are kept in IQ Books or your existing software, and your returns are prepared and filed on time.

Your books can be kept in IQ Books or the software you already use, such as Xero, QuickBooks or Sage, with live access for you.

Questions people ask

Is an accountant worth it for a simple tax return?

You can file your own Self Assessment return online with HMRC. People use an accountant to save time and to have someone check that the right income and allowable expenses are included. Our Self Assessment page explains what we do.

Why does a limited company cost more than a sole trader?

A company has more to file: annual accounts at Companies House, a Corporation Tax return with HMRC, and usually a personal return for each director. The accounts also need more adjustments at the year end.

Can I claim the accountant's fee as a business expense?

Fees for preparing your business accounts are generally an allowable business expense, so they reduce your taxable profit.

Is there a charge for the first call?

No. The first conversation is a free 20-minute call, and there is no obligation.

Keep reading

Get a fixed fee, agreed up front

Book a free 20-minute call and we will tell you what your returns involve and agree a fixed monthly fee before any work starts.

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