How Much Does a Contractor Accountant Cost in the UK? 2026 Price Guide

A contractor accountant in the UK typically costs between £80 and £200 per month for a standard limited company package. That works out to £960 to £2,400 per year, though the total depends on your revenue, VAT registration status, number of transactions, and how much support you actually need. Budget online services start from around £60 per month, while premium advisory packages with proactive tax planning can run £250 to £350 per month. And increasingly, AI-powered accounting platforms are offering the core compliance work for a fraction of the cost.

If you are a contractor running a limited company, you are almost certainly paying for an accountant. The question is not whether you need some form of accounting support, but how much you should be paying and what you should be getting for your money. This guide breaks down every tier of the market in 2026, from DIY spreadsheets to premium advisory services, so you can make an informed decision.

The Full Pricing Landscape: What Contractors Pay in 2026

Before diving into the details, here is a complete overview of what contractor accounting costs at every level of the market.

These are monthly retainer prices for a standard contractor limited company package. Many providers also charge one-off fees for setup, company formation, ad-hoc queries, and additional services, which we cover in detail below.

Tier 1: DIY with Spreadsheets or Software (£0 to £30/month)

The cheapest option is doing everything yourself. Some contractors manage their own bookkeeping using spreadsheets, free tools, or low-cost software like FreeAgent (£16.50/month with a Barclays business account) or Wave (free).

What You Get

• Basic bookkeeping and expense tracking
• Invoice generation
• Some bank feed integration
• VAT calculation (in paid tools)

What You Do Not Get

• Year-end accounts preparation
• Corporation Tax (CT600) filing
• Self Assessment filing
• IR35 advice or contract reviews
• Payroll processing
• Someone to answer your questions

The Real Cost

The financial cost is low, but the time cost is significant. Most contractors who go fully DIY spend 3 to 5 hours per month on bookkeeping and reconciliation, plus 10 to 20 hours at year end preparing accounts and filing returns. At a typical contractor day rate of £400 to £600, those hours have a real opportunity cost.

More importantly, DIY carries risk. Mistakes in your Corporation Tax return, missed filing deadlines, or incorrectly claimed expenses can lead to HMRC penalties and investigations. A single late filing penalty for annual accounts is £150, rising to £1,500 if you are more than six months late. Late Corporation Tax returns start at £100 and escalate quickly.

Who This Works For

Genuinely, almost nobody running a limited company should go fully DIY. Sole traders with simple affairs can manage, but the compliance requirements of a limited company, including annual accounts, confirmation statements, Corporation Tax returns, and potentially VAT and payroll, are complex enough that professional support pays for itself in avoided mistakes and saved time.

If you want to handle the day-to-day bookkeeping yourself but still need year-end compliance handled, you are looking at the next tier up: either AI automation or a budget accountant package.

Tier 2: AI-Powered Accounting (£9 to £19/month)

This is the newest tier in the market and represents the biggest shift in contractor accounting in years. AI-powered platforms like AccountsOS handle the bookkeeping, categorisation, and compliance work that traditionally required either your time or an accountant's time.

What You Get

• Automated transaction categorisation from bank feeds
• Receipt scanning and matching
• Real-time profit and loss, balance sheet, and VAT reports
• AI chat assistant that understands UK accounting (ask questions in plain English)
• Corporation Tax estimation
• Deadline tracking and reminders (Companies House, HMRC)
• Document storage and organisation
• Multi-entity support if you run more than one company

What You Do Not Get (Yet)

• CT600 filing directly to HMRC (you would still file via HMRC's portal or use a filing agent)
• IR35 contract reviews
• Complex tax planning advice
• A human accountant on call

The Real Cost

At £9 to £19 per month, AI accounting costs roughly 10% to 15% of what a traditional contractor accountant charges. The savings are significant: £1,000 to £2,000 per year compared to a mid-range online accountant.

The trade-off is that you are responsible for the final review and submission of your tax returns. The AI handles the heavy lifting of categorisation, reconciliation, and calculation, but you (or a tax advisor you engage separately) sign off on the final numbers.

Who This Works For

AI accounting is the best fit for contractors who are comfortable with technology, have relatively straightforward affairs, and want to stay in control of their finances without spending hours on admin. If your main needs are bookkeeping, expense tracking, VAT calculation, and having a clear picture of your financial position at any time, AI handles this well.

If you need complex IR35 advice, proactive salary and dividend planning, or someone to represent you in an HMRC enquiry, you will still want a human accountant. But many contractors are discovering they can use AI for the 80% of work that is routine compliance and bookkeeping, then engage an accountant on an ad-hoc basis for the 20% that requires specialist advice. This hybrid approach can save you over £1,000 per year compared to a full-service accountant package.

Tier 3: Budget Online Accountants (£60 to £80/month)

Budget online accountancy services target cost-conscious contractors who want professional support at the lowest possible price. Providers in this space include Crunch's basic packages, 1st Formations, Dolan Accountancy's entry tier, and various smaller online-only firms.

What Is Typically Included

What to Watch Out For

Budget packages often look attractive on the headline price but can end up costing significantly more once you add the extras. Common additional charges include:

• Self Assessment filing: Some budget providers only include the company accounts and CT600. Your personal Self Assessment is charged separately at £150 to £250.
• VAT returns: If you are VAT registered, quarterly returns may cost £30 to £60 each (£120 to £240 per year) on top of the base price.
• Payroll: Running a monthly payroll (even just for your own salary) can add £15 to £30 per month.
• Ad-hoc queries: Many budget providers limit you to a set number of queries per month or year. Exceed the limit and you pay hourly, typically £50 to £100 per hour.
• Setup fees: Company formation or onboarding fees of £50 to £200.
• Companies House filing: Some charge £13 to £50 for filing your confirmation statement, even though Companies House only charges £13 itself.

A budget package advertised at £65 per month can easily reach £100 to £120 per month once Self Assessment, VAT returns, and payroll are included.

Who This Works For

Budget online accountants work well for contractors with very simple limited company affairs: a single director, one income stream, no employees, not VAT registered, and no complex tax planning needs. If that describes you, a budget provider handles the compliance basics at a reasonable price.

However, if you are VAT registered, have multiple income streams, or need any level of advisory support, you will quickly outgrow the budget tier.

Tier 4: Mid-Range Online Accountants (£100 to £150/month)

This is where most UK contractors end up. Mid-range online accountants provide a comprehensive service that covers all the standard compliance requirements plus some level of advisory support. Key providers include Crunch (Plus and Premium), SJD Accountancy, Gorilla Accounting, Intouch Accounting, and Nixon Williams.

What Is Typically Included

The Sweet Spot for Most Contractors

At £100 to £150 per month, you get a genuine all-inclusive service with minimal surprises on the bill. Most mid-range providers include VAT returns, payroll, Self Assessment, and basic tax planning as standard. You typically get a named account manager or a small team who knows your situation.

The quality of service varies significantly between providers, so it is worth reading recent reviews and asking specific questions before signing up. Key differentiators at this tier include:

• Response times: How quickly do they answer queries? Same day, next day, or "within 5 working days"?
• Proactive advice: Do they contact you with tax-saving opportunities, or do they only respond when you ask?
• Software quality: Is their bookkeeping platform good enough to use daily, or is it clunky?
• IR35 expertise: For contractors, IR35 knowledge is essential. Some generalist online accountants lack depth here.

Real-World Pricing Examples (2026)

Based on publicly available pricing and contractor community feedback:

• Crunch Plus: Around £129 per month. Includes accounts, CT600, Self Assessment, VAT, payroll. Own software platform. Unlimited support via their team.
• SJD Accountancy: Around £135 to £155 per month depending on package. Dedicated account manager. Good IR35 knowledge. One of the longest-established contractor accountants.
• Gorilla Accounting: Around £115 to £140 per month. Dedicated accountant. Includes all compliance plus basic tax planning. Well-reviewed in contractor forums.
• Intouch Accounting: Around £105 to £130 per month. Similar offering to Gorilla. Good reputation for responsiveness.
• Nixon Williams: Around £120 to £145 per month. Umbrella and limited company services. Includes IR35 contract reviews.

Prices change regularly, so always check the provider's website for current rates. The figures above are indicative of the 2026 market.

Who This Works For

The mid-range tier suits the majority of contractors: you are VAT registered, you run a straightforward limited company, you want someone else to handle all the compliance, and you want basic guidance on salary and dividend planning. If your annual revenue is between £50,000 and £200,000 and your affairs are not unusually complex, this tier gives you the best balance of cost and service.

Tier 5: Traditional and Specialist Accountants (£150 to £250/month)

Traditional high-street accountants and specialist contractor accountancy firms charge more, but you get a more personal and often more expert service. This tier includes local accountancy practices, specialist contractor firms with deeper IR35 and tax planning expertise, and firms that serve specific sectors (IT contractors, engineering contractors, medical locums).

What Is Typically Included

Everything in the mid-range tier, plus:

• A dedicated, named accountant (not a team inbox)
• Face-to-face meetings (annual or quarterly, in person or video)
• Proactive tax planning advice
• IR35 contract reviews (often included as standard)
• Representation in HMRC enquiries
• More complex salary and dividend planning
• Advice on pension contributions, EIS/SEIS, and other tax-efficient strategies
• Support with company restructuring

When the Extra Cost Is Worth It

There are specific situations where paying £150 to £250 per month is justified:

High earners (£150,000+ revenue): At this income level, the tax planning opportunities are significant. A good accountant can save you thousands per year through optimal salary and dividend extraction, pension contributions, and legitimate expense planning. The accountant's fee pays for itself many times over.

Inside IR35 contracts: If you regularly work inside IR35 or are navigating the boundary, specialist advice is essential. An IR35 determination error can result in a tax bill running into tens of thousands of pounds. A specialist contractor accountant who understands your sector and can review contracts thoroughly is worth every penny.

Multiple entities or complex structures: If you run more than one company, have overseas income, or have a complex personal tax situation (rental income, investments, multiple directorships), you need an accountant who can see the full picture.

HMRC enquiries: If you are selected for an enquiry or compliance check, having an accountant who will handle the correspondence and represent you is invaluable. Most mid-range and above packages include enquiry protection, but the depth of support varies.

Who This Works For

Contractors earning over £100,000 per year, those with complex IR35 situations, and anyone who values a genuine advisory relationship rather than just compliance processing. If you want someone who knows your business, spots opportunities before you ask, and gives you confidence that your affairs are optimised, this is the right tier.

Tier 6: Premium Advisory Services (£250 to £350/month)

At the top end of the market, premium advisory services go well beyond compliance. These are typically smaller, specialist firms or dedicated advisory divisions within larger practices. They serve high-earning contractors and company directors who want a genuine financial partner.

What Is Typically Included

Everything in the traditional tier, plus:

• Quarterly or monthly financial reviews
• Proactive tax planning throughout the year (not just at year end)
• Wealth planning advice (pensions, ISAs, investments, exit planning)
• Business structure optimisation
• R&D tax credit claims
• Patent box advice where applicable
• Regular benchmarking against industry norms
• Priority support with fast response times

The Premium Pricing Calculation

At £250 to £350 per month (£3,000 to £4,200 per year), the fee needs to generate a clear return. For a contractor earning £200,000 per year, the difference between basic and premium tax planning can easily be £5,000 to £10,000 per year in reduced tax liability through:

• Optimal pension contribution timing
• Salary and dividend mix adjusted for your specific circumstances
• Capital allowances and equipment timing
• R&D tax credits for qualifying work
• Extraction planning for retained profits

If your accountant is not saving you more than their fee in tax, they are not doing their job at the premium level.

Who This Works For

Contractors earning £200,000+ per year, those approaching retirement or exit, directors with complex personal wealth, and anyone who wants their accountant to function as a fractional CFO rather than a compliance processor. At this level, you are paying for strategic thinking, not data entry.

Hidden Costs: What Is Not in the Headline Price

Regardless of which tier you choose, there are common additional costs that catch contractors off guard. Here is what to check before signing up with any provider.

Setup and Onboarding Fees

Many accountants charge a one-off setup fee of £100 to £300 to take on a new client. This covers reviewing your previous accounts, setting up their software, and doing an initial assessment of your affairs. Some providers waive this fee as a promotion, and others roll it into the first few months' payments. Always ask.

Company Formation

If you are incorporating a new limited company, your accountant may offer to handle this for £50 to £200. You can do it yourself through Companies House for £12 (online) or £50 (same-day), so this is often an unnecessary markup. However, some accountants include useful extras like setting up your Memorandum and Articles of Association with appropriate share structures.

Ad-Hoc Queries and Hourly Charges

This is the single biggest source of unexpected costs. Many budget and mid-range providers include a limited number of queries in your package (for example, "up to 30 minutes of phone support per month"). Exceed this and you pay hourly, typically at £50 to £150 per hour depending on the firm.

Before signing up, ask specifically: "If I email you with a question about an expense or a tax decision, is that included in my monthly fee or charged separately?" The answer tells you a lot about how the relationship will work.

Late Filing Penalties

This is technically not a fee from your accountant, but it is a cost that results from poor accountancy. If your accountant misses a filing deadline, you pay the penalty to HMRC or Companies House, not them. Most reputable accountants will cover penalties caused by their own errors, but this should be confirmed in writing.

Common penalties include:

Switching Costs

If you decide to leave your current accountant, there may be costs involved. Your outgoing accountant is legally required to hand over your records, but they can charge a "disengagement fee" of £100 to £300 for preparing and transferring your files. Some accountants also withhold records until outstanding invoices are paid. Check the terms of engagement before you sign.

VAT on Accountancy Fees

If your accountant is VAT registered (most are), their fees are subject to VAT at 20%. A fee quoted as £120 per month becomes £144 per month including VAT. The good news is that if your company is VAT registered, you can reclaim the VAT on accountancy fees as input tax. If you are not VAT registered, it is a genuine additional cost. Always clarify whether quoted prices are inclusive or exclusive of VAT.

What Should a Contractor Actually Look For?

Price is important, but it is not the only factor. Choosing the wrong accountant, even a cheap one, can cost you thousands in missed tax savings, penalties, or poor advice. Here is what to prioritise.

1. Contractor and IR35 Expertise

This is non-negotiable. A general practice accountant who mainly handles sole traders and small businesses may not understand the nuances of IR35, the intermediaries legislation, or the specific tax planning opportunities available to limited company contractors.

Ask potential accountants:

• How many contractor clients do they have?
• Do they provide IR35 contract reviews?
• Can they explain the difference between inside and outside IR35 in terms you understand?
• What is their experience with HMRC compliance checks or IR35 enquiries?

If your accountant cannot confidently answer these questions, they are not the right fit. See our IR35 guide for contractors for more on why this matters.

2. All-Inclusive Pricing

The best contractor accountants offer genuine all-inclusive packages. This means your monthly fee covers year-end accounts, CT600, Self Assessment, VAT returns, payroll, and a reasonable level of support and advice. No surprises, no hourly charges for asking a question.

If a provider's pricing page requires you to add up six different line items to get the true cost, that is a red flag.

3. Proactive Communication

A good accountant contacts you before deadlines, not after them. They remind you about year-end tax planning opportunities in advance. They flag changes in legislation that affect you. They review your salary and dividend strategy at least annually.

If you only hear from your accountant when they need information from you, you are not getting value.

4. Software Quality

Most online accountants provide their own bookkeeping platform or integrate with FreeAgent, Xero, or QuickBooks. The quality of this software matters, because you will use it regularly to upload receipts, reconcile transactions, and check your financial position.

A clunky, outdated platform adds friction and makes you less likely to keep your records up to date. Test the software before committing if possible.

5. Response Times

Ask about typical response times for email and phone queries. "Within 5 working days" is not acceptable for a contractor who needs a quick answer about whether an expense is claimable or how to handle a client's IR35 determination. Look for same-day or next-day response as a minimum.

6. Flexibility on Contract Length

Some accountants lock you into 12-month contracts. Others are month-to-month. Given how easy it is to switch accountants, a provider who insists on long lock-in periods may not be confident in retaining clients on the quality of their service. Prefer month-to-month or quarterly notice periods.

Do You Even Need an Accountant? The Case for AI

This is the question an increasing number of contractors are asking, and the honest answer has changed significantly over the past two years.

What an Accountant Actually Does for You

Let us break down the services a typical contractor accountant provides and assess whether each one genuinely requires a human:

The pattern is clear: roughly 60% to 70% of what you pay an accountant for is routine compliance and bookkeeping work that AI can now handle. The remaining 30% to 40%, the advisory, planning, and representation work, still benefits from human expertise.

The Hybrid Approach

The smartest approach for many contractors in 2026 is to use AI for the routine work and engage a human accountant only for the specialist work. Here is what that looks like in practice:

• AI platform (£9 to £19/month): Handles bookkeeping, categorisation, reconciliation, receipt scanning, VAT calculation, financial reports, deadline tracking.
• Ad-hoc accountant (£100 to £300/year): Annual review of your accounts before filing, salary and dividend advice, IR35 contract review when needed.

Total cost: approximately £200 to £530 per year, compared to £1,200 to £2,400 per year for a mid-range accountant package. That is a saving of £1,000 to £2,000 per year while still getting professional oversight where it matters.

If you want the bookkeeping and compliance handled automatically and only need an accountant for complex tax planning, AI can save you over £1,000 per year. See how AccountsOS works for contractors.

When You Definitely Need a Human Accountant

To be clear, there are situations where AI alone is not enough:

• Your first year of trading: Getting the foundations right (share structure, salary level, pension setup, VAT registration decision) is worth professional advice.
• IR35 determinations: If you are working through an agency or directly with a client and need to determine your IR35 status, this requires expert judgment. Our IR35 guide covers the basics, but a contract review should involve a specialist.
• Revenue over £200,000: At this level, the tax planning opportunities are complex enough to justify dedicated advisory support.
• HMRC enquiry: If HMRC opens a compliance check or enquiry, you want professional representation.
• Multiple entities or overseas income: Complex structures need an accountant who can see the full picture across all your affairs.

For more on this decision, see our detailed guide: Do I Need an Accountant for My Limited Company?.

How to Compare Accountant Quotes

When you are evaluating accountant quotes, use this checklist to ensure you are comparing like for like:

The Comparison Checklist

1. Base monthly fee: What does the headline price include?
2. Self Assessment: Included or extra? If extra, what is the charge?
3. VAT returns: Included or extra? Per-return charge?
4. Payroll: Included or extra? Monthly or annual charge?
5. IR35 reviews: Included or extra? Per-review charge?
6. Ad-hoc queries: Included or limited? What happens when you exceed the limit?
7. Software/platform: Included or do you need a separate subscription?
8. Setup fee: One-off onboarding charge?
9. VAT on fees: Quoted inclusive or exclusive of VAT?
10. Contract term: Monthly, quarterly, or annual commitment?
11. Penalty protection: Do they cover penalties caused by their errors?
12. Notice period: How much notice to leave?

Run through this list with every provider you are considering. You will be surprised how different the true annual cost can be from the advertised monthly price.

Worked Example: True Annual Cost Comparison

Let us compare the real annual cost for a VAT-registered contractor with a monthly payroll:

In this example, the budget provider is actually more expensive than the mid-range provider once extras are included, and the AI plus ad-hoc accountant combination saves over £1,100 per year.

Switching Accountants: How It Works

If you are currently overpaying or unhappy with your accountant, switching is straightforward. Here is the process:

Step-by-Step

1. Review your current terms. Check your engagement letter for notice period (typically 1 to 3 months) and any disengagement fees.
2. Choose your new provider. Use the comparison checklist above.
3. Notify your current accountant in writing. A simple email is sufficient: "I am writing to give notice that I wish to terminate our engagement, effective [date]. Please confirm the process for transferring my records."
4. Authorise the new provider. Your new accountant will send a "professional clearance" letter to your old one. This is a standard process regulated by professional bodies.
5. Receive your records. Your outgoing accountant must hand over all your records, including accounts, tax returns, and supporting documents. They can charge a reasonable fee for this but cannot withhold records.
6. Set up with the new provider. Onboarding typically takes 1 to 2 weeks. Your new accountant or platform will need access to your accounting records, Companies House, and HMRC accounts.

When to Switch

The best time to switch is at the start of a new financial year. This gives your new provider a clean starting point and avoids the complexity of picking up part-way through a year end. However, you can switch at any time if needed.

If you are considering switching to an AI platform, the process is even simpler. There is no professional clearance required (it is software, not an accountant), and you can set up alongside your existing accountant to test the platform before making the switch.

The Market in 2026: What Has Changed

The contractor accountancy market has shifted significantly over the past few years. Here are the trends shaping pricing and service levels in 2026:

AI Is Compressing the Bottom of the Market

Budget online accountants are under pressure from two directions: AI platforms that automate the compliance work for a fraction of the price, and mid-range providers who offer genuinely all-inclusive packages that make the budget tier's add-on pricing less competitive.

IR35 Has Stabilised but Remains Complex

Since the off-payroll working rules were extended to the private sector in April 2021, the initial wave of blanket IR35 determinations has settled. However, the legislation remains complex and enforcement is increasing. Contractors need accountants (or AI platforms) that understand IR35 deeply, not just at a surface level.

MTD for Income Tax Is Coming

Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) is being phased in from April 2026 for those with income over £50,000. This will require quarterly digital submissions to HMRC, increasing the compliance burden. Some accountants are already adjusting their pricing to reflect this additional work, while AI platforms are building MTD compliance into their core offering.

Remote-First Is Now Standard

The pandemic permanently shifted contractor accountancy online. Even traditional high-street firms now offer video meetings and digital document exchange. This means geography is no longer a constraint when choosing an accountant, which has increased competition and kept prices in check.

Contractor-Specific Considerations

Beyond the general pricing and service comparison, there are several considerations specific to contractors that affect the value you get from your accountant.

Salary and Dividend Optimisation

One of the most valuable services an accountant provides is advising on the optimal split between salary and dividends. For the 2025/26 tax year, the most common strategy is:

• Salary: £12,570 (the personal allowance), which is tax-free for income tax purposes and triggers qualifying National Insurance credits
• Dividends: Remaining profits, taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate)

However, the optimal split depends on your personal circumstances, including other income, your partner's income and tax position, pension contributions, and available tax reliefs. Getting this wrong can cost you thousands per year. If your accountant is not reviewing this with you at least annually, they are not doing their job.

Pension Contributions

Employer pension contributions from your limited company are a Corporation Tax deduction and are not subject to National Insurance. This makes them one of the most tax-efficient ways to extract profit from your company. A good accountant will help you calculate the optimal annual contribution based on your earnings, available annual allowance, and lifetime planning goals.

Expense Claims

Many contractors under-claim expenses because they are unsure what is allowable. A proactive accountant (or AI platform with UK tax knowledge) ensures you claim everything you are entitled to, including:

• Home office costs (simplified or actual basis)
• Professional subscriptions and training
• Travel and subsistence for temporary workplaces
• Equipment, software, and technology
• Professional indemnity insurance
• Accountancy fees themselves

For a complete reference, see our allowable business expenses guide.

Year-End Planning

The most valuable work an accountant does often happens in the two months before your financial year end. This is when decisions about pension contributions, equipment purchases, and dividend payments can make the biggest difference to your tax bill. If your accountant only contacts you after the year end to ask for your records, you have missed the window for optimisation.

Frequently Asked Questions

How much does a contractor accountant cost per month?

A contractor accountant in the UK typically costs between £80 and £200 per month for a comprehensive limited company package. Budget online services start from around £60 per month, mid-range providers charge £100 to £150, and premium advisory services run £250 to £350. AI-powered alternatives like AccountsOS offer core accounting for £9 to £19 per month.

Is it worth paying for a contractor specialist accountant?

Yes, if you work through a limited company and have any IR35 considerations. A generalist accountant who does not understand contractor-specific tax planning and IR35 legislation can cost you more in missed savings than the fee difference. At a minimum, ensure your accountant has a significant number of contractor clients and can confidently discuss IR35.

What should be included in a contractor accountant package?

A good contractor accountant package should include year-end accounts preparation and filing, Corporation Tax return (CT600), personal Self Assessment, quarterly VAT returns (if registered), monthly payroll, bookkeeping software, and a reasonable level of support for queries. IR35 contract reviews and proactive tax planning advice are standard at mid-range and above.

Can I claim my accountancy fees as a business expense?

Yes. Accountancy fees relating to the preparation of your company accounts and tax returns are an allowable business expense for Corporation Tax purposes. This includes the cost of accountancy software subscriptions. Personal tax return costs are claimable against your personal tax if they relate to income from the company.

How do I switch accountants without disruption?

Give written notice to your current accountant per your engagement terms (typically 1 to 3 months). Your new provider will handle the "professional clearance" process, which involves writing to your old accountant to confirm there are no reasons you should not transfer. Your outgoing accountant must hand over all records. The best time to switch is at the start of a new financial year for a clean handover.

What is the cheapest way to do accounts for a limited company?

The cheapest approach is using an AI accounting platform like AccountsOS (from £9/month) for day-to-day bookkeeping, categorisation, and financial reporting, combined with an ad-hoc accountant engagement for year-end review and filing. This hybrid approach costs approximately £250 to £500 per year, compared to £1,200 to £2,400 for a traditional accountant package.

Do I need an accountant if I use accounting software?

Accounting software handles bookkeeping and reporting but does not replace the compliance filing and advisory work of an accountant. However, AI-powered platforms are closing this gap rapidly. For contractors with straightforward affairs, a combination of AI accounting and occasional professional advice may be sufficient. For complex situations, a dedicated accountant remains valuable. See our full guide on whether you need an accountant for a limited company.

Are cheap contractor accountants safe to use?

Budget accountants can be perfectly adequate for simple limited company affairs. However, watch out for providers that cut costs by using unqualified staff, offering minimal support, or charging heavily for extras. Key red flags include: no clear pricing on their website, long lock-in contracts, no professional body membership (ICAEW, ACCA, CIMA), slow response times, and a lack of contractor-specific knowledge. Always verify that your accountant or their supervising principal holds a practising certificate from a recognised professional body.