How Much Does a Limited Company Accountant Cost? UK 2026 Guide

Last updated: May 2026.

"How much does an accountant cost?" is one of the first questions every new limited company director asks — and one of the hardest to get a straight answer to. Quotes range from £30 a month to £400 a month for what looks, on the surface, like the same thing. The figure you actually pay depends on your turnover, whether you are VAT registered, whether you run payroll, how much bookkeeping you are willing to do yourself, and — increasingly — whether you use a traditional accountant at all.

This guide gives you the real numbers for 2026. It breaks down monthly packages versus one-off annual fees, shows exactly what is included at each price point, exposes the hidden extras that inflate the headline price, and works through what a company of your size and stage should expect to pay. It also covers the modern alternatives — accounting software and AI-led platforms — that have reshaped the lower end of the market.

The Headline Numbers for 2026

Here is the short version before we go deeper.

For a typical solo-director limited company with modest turnover, one VAT return cycle and a director-only payroll, the realistic 2026 budget for a traditional accountant is £100–£150 per month, or roughly £1,200–£1,800 a year. Smaller and simpler companies pay less; companies with employees, higher turnover or complex affairs pay more.

What Actually Drives the Price

Two companies can pay wildly different fees for the same job title. The price is driven by a handful of concrete factors.

Turnover and transaction volume. A company turning over £40,000 with 30 transactions a month is far quicker to account for than one turning over £400,000 with 400. Most accountants band their fees by turnover, and bookkeeping time is the single biggest variable cost.

VAT registration. A VAT-registered company needs quarterly VAT returns prepared and filed. That typically adds £15–£40 per month, or £150–£400 a year, to the fee. Making Tax Digital compliance is now standard and bundled into most packages.

Payroll. A director-only payroll (one payslip a month) is cheap — often £10–£25 a month. Each additional employee adds cost, usually £5–£15 per payslip. Pension auto-enrolment administration can be extra again.

How much bookkeeping you do. This is the biggest lever you control. If you hand your accountant a shoebox of receipts and a year of unsorted bank statements, you are paying them to do bookkeeping at professional rates. If you keep your records categorised throughout the year — in software or an AI platform — the accountant's job shrinks to review and filing, and the fee falls accordingly.

Complexity. Multiple directors, multiple income streams, foreign income, R&D tax credit claims, share schemes, directors' loans, property — each adds to the fee. A clean, single-trade company is the cheapest to serve.

Service level. A basic compliance service (file the accounts, file the CT600, keep you legal) sits at the bottom of the range. Proactive tax planning, regular meetings, management accounts and "ask anything" advice sit at the top.

Location. London and the South East run roughly 20–40% above the rest of the UK for the same service. Online and AI-led providers price nationally, which is part of why they undercut the high street.

Accountant vs Bookkeeper: Don't Pay for the Wrong Thing

A common and expensive confusion: an accountant and a bookkeeper are not the same role, and they do not cost the same.

A bookkeeper handles the day-to-day record-keeping — recording transactions, reconciling the bank, chasing receipts, processing invoices and bills, and often running payroll. Bookkeepers typically charge £15–£35 per hour, or £100–£400 a month for a small company on a fixed arrangement.

An accountant takes those finished records and produces the statutory outputs — the year-end accounts, the corporation tax computation and CT600, tax advice, and the sign-off that everything is correct. Accountants charge more per hour (£100–£250) because the work needs a qualified professional.

Where directors overpay is by hiring a full accountant — at accountant rates — to do bookkeeping. Routine transaction-coding does not need someone qualified to file a CT600. The cost-efficient structure is to keep the bookkeeping cheap (software, an AI platform, or an actual bookkeeper) and reserve the accountant for the year-end and advisory work that genuinely requires their qualification. Many "all-in" accountant packages are really bookkeeping plus accounting bundled together — fine if priced fairly, expensive if you are paying partner rates for data entry.

How Accountant Pricing Changed

If an older business owner tells you their accountant "just charges by the hour", that model is fading. A decade ago, hourly billing was normal — and unpredictable, because you did not know the bill until the work was done. Today the market has moved decisively to fixed monthly packages, driven by online accountants and cloud software.

For you as the buyer, fixed monthly pricing is mostly good news: the cost is predictable, it spreads across the year, and it usually includes the software. The downside is that a package can include services you never use, and "unlimited advice" often is not. Hourly billing still exists for genuine one-off work — a tax-planning project, a second opinion, an HMRC enquiry — where a fixed package would not make sense.

The newest shift is the unbundling of the package altogether: software and AI platforms handle the routine work for a low flat fee, and you buy only the accountant time you actually need on top. That is why the bottom of the market has fallen so far in price while the top — genuine advisory work — has held its value.

The Six Cost Tiers Explained

The UK market for limited company accounting splits into six fairly distinct tiers. Knowing which one you are looking at stops you comparing a £15/month tool with a £300/month advisory service as if they were the same purchase.

Tier 1: DIY with software (£0–£30/month)

You do the work; software does the arithmetic and filing mechanics. Spreadsheets cost nothing; mainstream bookkeeping software runs £10–£30 a month. You still need the knowledge to categorise transactions correctly, calculate corporation tax, and file the CT600 and accounts. This tier works for confident directors with simple companies, but the time cost and the risk of errors are real. See our guide to the best UK accounting software for limited companies.

Tier 2: AI accounting platforms (£9–£19/month)

The newest tier. AI-led platforms automate the parts that used to require either an accountant or hours of your time: transactions are categorised automatically, receipts are read and filed, deadlines are tracked, and an AI assistant answers questions in plain English. AccountsOS sits here — £9/month for early adopters, £19/month standard, with a free year for the Founders Club. This tier removes most of the manual work without a monthly retainer. It suits directors who want automation and visibility but do not need a named human accountant on call. See the best AI accountant for UK founders.

Tier 3: Budget online accountants (£60–£90/month)

The entry point for a "real accountant" relationship. You get year-end accounts, the CT600, a confirmation statement, basic payroll and usually a software licence bundled in. Communication is typically email and ticketing rather than a dedicated person. Fine for simple companies that want compliance handled, but do not expect proactive tax planning.

Tier 4: Mid-range online accountants (£100–£150/month)

The most popular tier for established small companies. You usually get a named accountant or a small team, VAT returns, payroll, year-end accounts, the CT600, the directors' Self Assessment, and some advisory contact. This is the realistic budget for a typical trading limited company in 2026.

Tier 5: Traditional high-street accountants (£150–£250/month)

A local firm with face-to-face meetings and a long-term relationship. Often billed as an annual fee rather than monthly. You get personal service and someone who knows your business, but you pay for the overheads of an office and partner time. Quality varies widely — some are excellent, some are slow and expensive for what they deliver.

Tier 6: Premium advisory services (£250–£400+/month)

Full advisory: proactive tax planning, management accounts, forecasting, regular strategy meetings, and bespoke work such as R&D claims or remuneration planning. Worth it for companies where the tax saved and decisions improved exceed the fee — generally higher-turnover or higher-complexity businesses. Overkill for a simple solo company.

Monthly Package vs Annual Fee vs Hourly

Accountants price their work in three ways, and the structure matters as much as the number.

Monthly package (retainer). A fixed monthly fee covering an agreed list of services across the year. The advantage is predictability and spreading the cost; the risk is paying for things you do not use. Most online accountants work this way. Always get the included-services list in writing.

One-off annual fee. You pay once a year for a defined job — usually the statutory accounts plus the CT600, sometimes the confirmation statement and a director's Self Assessment. Common with traditional firms and ideal for simple or dormant companies that need compliance done once and nothing in between. Expect £500–£1,500 depending on complexity.

Hourly or ad hoc. Charged per hour (£100–£250) or per piece of work. Useful for one-off tax planning questions or a second opinion, but an expensive way to buy routine compliance.

A simple, low-activity company is often cheapest on a one-off annual fee. A trading company with VAT, payroll and regular questions is usually better on a monthly package — the per-item cost works out lower and you are not nickel-and-dimed for every email.

What You Get at Each Price Point

The word "accountant" covers a lot of ground. Here is roughly what is included as you move up the tiers.

The gap between "budget" and "premium" is not the compliance work — every tier files your accounts and CT600. The gap is advice and proactivity: whether someone is actively looking at your numbers and telling you how to pay less tax or run the business better.

Hidden Costs: What the Headline Price Leaves Out

The advertised monthly fee is rarely the whole story. Watch for these extras.

• Self Assessment as an add-on. Many budget packages quote the company work only and charge £150–£300 separately for the director's personal tax return.
• VAT registration and returns. Sometimes excluded from the headline price and added when you register.
• Per-payslip payroll charges. A package may include the director's payslip but charge per employee beyond that.
• Catch-up or "year-one" fees. If you join mid-year or hand over messy records, expect a one-off bookkeeping catch-up charge.
• References and certificates. A reference letter for a mortgage or a lender's certificate is often billed separately, sometimes £50–£150.
• Software licence. Some firms include it; others add it on top.
• Exit / handover fees. A few firms charge to release your records when you leave — though professional bodies frown on this.
• HMRC enquiry support. Representing you in an HMRC investigation is usually not included; some firms sell fee-protection insurance for it.

Always ask for the total annual cost for your specific situation, itemised — not the "from" price on the website.

What It Costs by Company Type: Four Scenarios

General ranges only get you so far. Here is what four realistic companies should expect to pay.

Scenario 1: A dormant company

A non-trading company has minimal obligations — dormant accounts at Companies House and, if HMRC has been notified that the company is dormant, no CT600 to file.

You can also file dormant accounts and the confirmation statement yourself for just the £34 statutory fee. There is no case for a monthly package here — a dormant company that is paying a monthly retainer is almost certainly overpaying.

Scenario 2: A solo-director contractor or consultant

One director, no employees, turnover £60,000–£90,000, VAT registered on the flat rate scheme, director-only payroll. This is the single most common limited company profile in the UK.

A mid-range monthly package is usually the right structure here. Our contractor accountant cost guide goes deeper on this profile.

Scenario 3: A small trading company with two employees

Two directors, two staff, turnover £200,000, VAT registered (standard scheme), monthly payroll for four people, more transactions to process.

The extra cost over Scenario 2 is mostly payroll volume and a higher transaction count. Keeping the bookkeeping clean is the biggest lever to stay at the lower end of this range.

Scenario 4: A growing company wanting advice

Turnover £400,000+, several employees, plans to raise investment or claim R&D relief, wants management accounts and tax planning.

At this stage the accountant should be measurably saving you more than they cost — through tax relief claimed, better decisions and avoided mistakes. If they are not, you are buying the wrong tier.

Is an Accountant Worth the Cost?

An accountant is not a legal requirement — no UK company is obliged to appoint one. The question is whether the value exceeds the fee. We cover the full decision in do I need an accountant for my limited company, but the cost-side summary is this:

An accountant earns their fee when they:

• Save more tax than they cost (optimal salary/dividend split, claiming every allowable expense, capital allowances, R&D relief)
• Stop you incurring penalties — a single missed CT600 deadline can cost £100s to £1,000s
• Free up your time to earn at your own hourly rate instead of doing books
• Catch errors before HMRC does

An accountant is poor value when:

• Your company is simple and low-activity, and the work is essentially "file two returns a year"
• You are paying premium fees for a basic compliance service
• You are doing most of the bookkeeping anyway and paying full price as if you were not
• The relationship is unresponsive — you pay a retainer but cannot get questions answered

The honest position: most directors benefit from professional input on tax strategy, but the routine compliance and bookkeeping that makes up the bulk of a traditional fee is increasingly automatable. That is the gap modern tools fill.

What You Are Actually Paying For: The Task List

It helps to see the fee not as a single price but as a bundle of distinct jobs. Over a typical year for a small trading company, an accountant's package covers roughly the following.

Two things stand out. First, most of the recurring effort — bookkeeping review, VAT, payroll — is process work that software and AI platforms now automate well. Second, the genuinely judgement-heavy work — the year-end sign-off and tax planning — is a smaller slice of the calendar but the part where a good accountant earns their fee. When you assess value, ask how much of your fee is buying process versus judgement.

The Hidden Cost of Cheap or No Accounting

Looking only at the fee misses half the equation. Getting your accounting wrong — or skipping it — has its own costs, and they are often larger than the fee you saved.

Penalties. A late CT600 triggers an automatic £100 penalty, escalating into tax-geared charges after six and twelve months. A late confirmation statement or late accounts bring separate Companies House penalties of £150–£1,500. A single missed deadline can wipe out a year of "savings" from a cheaper accountant.

Missed tax relief. The expensive errors are usually invisible — the capital allowance not claimed, the suboptimal salary/dividend split, the allowable expense left off, the R&D relief never explored. A director paying themselves inefficiently can lose thousands a year without ever seeing a penalty notice.

Interest on underpaid tax. Get the corporation tax figure wrong and HMRC charges interest at around 8.5% on the shortfall.

Your own time. If doing your own books takes you two days a quarter, value that at your own billable rate. For many contractors and consultants, the time cost of DIY exceeds the fee of a decent platform or accountant.

Stress and risk. Uncertainty about whether you have filed correctly, claimed properly, or missed something is a real cost even if it never shows up on an invoice.

The point is not "always pay for the most expensive accountant". It is that the right comparison is total cost of getting it right — fee plus penalties avoided plus tax saved plus time freed — not the headline monthly figure alone.

The Software and AI Alternative

Ten years ago the choice was "accountant or spreadsheets". Today there is a middle path.

Accounting software (Tier 1) handles the mechanics — invoicing, bank feeds, VAT calculations — for £10–£30/month, but still expects you to know what you are doing. You are cheaper but not necessarily safer.

AI accounting platforms (Tier 2) go further. AccountsOS automatically categorises every transaction, reads and files receipts, tracks every HMRC and Companies House deadline, calculates your VAT and estimates your corporation tax in real time, and lets you ask questions in plain English — "how much can I take as a dividend?", "when is my VAT due?" — and get an instant answer from your actual data. At £9–£19/month it costs a fraction of a traditional retainer.

The realistic 2026 setup for many small companies is a hybrid: an AI platform doing the day-to-day bookkeeping, deadline tracking and visibility, plus a smaller spend on an accountant — perhaps a one-off annual fee or a few hours of advice — for the year-end sign-off and tax strategy. That hybrid often costs half to a third of a full traditional package while leaving you better informed about your own numbers, not worse.

How to Pay Less Without Cutting Corners

You can reduce your accountancy bill substantially without taking on real risk.

Keep your books current all year. The biggest, most controllable cost is the bookkeeping time inside the fee. Categorise transactions as they happen — in software or an AI platform — and your accountant's job shrinks to review and filing. Some firms explicitly offer a lower fee for "clean books".

Buy only the tier you need. A simple company does not need a premium advisory retainer. A dormant company does not need a monthly package at all. Match the tier to the company.

Unbundle where it is cheaper. If your package's Self Assessment add-on is expensive, a separate provider may do it for less. If you only need advice occasionally, ad hoc hours can beat a full retainer.

Get three itemised quotes. Ask each for the total annual cost for your situation, with every service listed. Comparing "from £X" headline prices is meaningless.

Use the flat rate VAT scheme if you qualify — it simplifies VAT work and can reduce the fee, as well as occasionally producing a small surplus.

Review annually. Loyalty is not rewarded with lower fees. Re-quote every year or two; the online and AI tiers in particular keep getting cheaper.

A Three-Year Cost Comparison

Headline monthly figures are hard to compare. Here is the same company — a solo-director consultant, VAT registered, director-only payroll — costed three ways over three years.

A few caveats make this fair. Traditional accountant fees tend to drift up a little each year. The hybrid figure assumes roughly £15–£19/month for an AI platform plus a £500–£550 one-off annual fee for an accountant to review and sign off the year-end and CT600. The DIY figure assumes you are confident filing your own accounts and CT600 — which carries real risk if you are not.

Over three years the spread is wide: roughly £4,800 versus £2,200 versus £540. The right choice is not automatically the cheapest — for a complex or higher-turnover company the traditional route can pay for itself in tax saved. But for a straightforward solo company, the hybrid model captures most of the value of an accountant at well under half the cost, and it leaves you with far better visibility of your own numbers in between year-ends.

Regional Price Variation

Where your accountant is based still affects the price, even though filing is now entirely digital.

A traditional London firm carries office and salary overheads that a Manchester or Cardiff firm does not, and that flows into the fee. The practical takeaway: you are not obliged to use a local accountant. Filing, signatures and communication are all digital now, so an online accountant in a lower-cost region — or an AI platform with national pricing — can do the identical job for less. The only reason to pay the local premium is if you genuinely value in-person meetings.

Questions to Ask Before You Sign

Before committing to any accountant, get clear answers to these. The answers, in writing, prevent the most common billing surprises.

• What exactly is included in the monthly fee? Get an itemised list — accounts, CT600, VAT, payroll, Self Assessment, confirmation statement, software.
• What is not included, and what does it cost? Self Assessment, extra payslips, references, catch-up work, HMRC enquiry support.
• Is there a catch-up or onboarding fee for joining mid-year or handing over untidy records?
• How and how fast do you communicate? Email, phone, a named person, a ticketing system — and what is the typical response time?
• Is advice included or charged? "Unlimited advice" should be defined. Ask what counts.
• Who actually does the work — a qualified accountant, a junior, or offshore staff?
• What professional body are you a member of? ACCA, ICAEW, CIMA, AAT or equivalent.
• How and when do fees increase, and how much notice do you get?
• What happens if I leave — are there exit fees, and how quickly are records released?
• Do you carry professional indemnity insurance? Any reputable firm will.

Red Flags When Choosing on Price

Cheap can be expensive. Watch for:

• Quotes far below the market with no clear scope — the gaps reappear as add-ons later.
• No fixed fee or scope in writing — "we'll see how it goes" billing.
• Slow or vague communication during the sales process — it does not improve once you have signed.
• No professional body membership — look for ACCA, ICAEW, CIMA, AAT or equivalent.
• Exit fees or hostage tactics over your own records.
• A "from" price that assumes you do all the bookkeeping but is sold as a full service.

The cheapest accountant who misses a deadline or mis-files a return costs more than a slightly dearer one who gets it right.

First-Year Companies: Special Cost Considerations

A company's first year has cost quirks worth planning for.

Your first accounts may cover more than 12 months. Companies House usually sets the first accounting reference date as the end of the month of the first incorporation anniversary, so first accounts often span 12–13 months. For corporation tax that long period is split into two periods needing two CT600 returns — and some accountants charge for the extra return. Ask how a long first period is priced before you sign.

Set-up and registration work. Registering for corporation tax, VAT and PAYE, and getting the company onto the accountant's systems, may attract a one-off onboarding fee. Some firms waive it to win the client; always ask.

You can defer some cost. A first-year company that has barely started trading has little for an accountant to do until the year-end. You do not necessarily need a full monthly package from month one — though you do need to track deadlines and keep records from day one.

Do not skip the basics to save money. First-year directors who file nothing because "the company is new" still get penalties. Whatever you spend, your accounts, CT600 and confirmation statement obligations apply from the first period.

A common, sensible first-year approach: use low-cost software or an AI platform to keep clean records and track deadlines from incorporation, then engage an accountant for the first year-end. That keeps cost down while the company finds its feet, without leaving compliance to chance.

Can You Negotiate Accountant Fees?

Yes — accountancy fees are more negotiable than most directors assume. A few approaches work.

Offer clean books. Bookkeeping time is the biggest variable in the fee. Tell the accountant your records will be kept current and categorised all year, and ask for a "clean books" price. Many firms have one.

Unbundle. If a quote includes services you do not need, ask for them stripped out. If the Self Assessment add-on is dear, source it elsewhere.

Pay annually. Some firms discount for an annual payment up front rather than monthly instalments.

Ask at the right time. The best leverage is at renewal, or just after a year-end when you could plausibly switch. Get a competing quote first — a firm that knows you are comparing is more flexible.

Be realistic. You will not negotiate a premium advisory service down to budget pricing, and you should be wary of a firm that drops its price dramatically with no change in scope — it suggests the original quote was padded. The aim is a fair price for a defined scope, not the lowest possible number.

Are Accountancy Fees Tax-Deductible?

Mostly, yes. Fees for the company's accounting work — preparing the statutory accounts, the CT600, VAT returns, payroll and company bookkeeping — are an allowable business expense, so they reduce your corporation tax bill. At a 19–26.5% effective rate, a £1,500 company accounting fee really costs the company around £1,100–£1,200 after tax relief.

The nuance is personal tax work. The fee for a director's personal Self Assessment is strictly the director's own cost, not the company's. In practice many companies pay a modest amount for it; if the company foots a director's personal tax bill it can create a small benefit-in-kind or be disallowed for corporation tax. It is a minor point for most directors, but worth knowing when you read a quote that bundles personal and company work into one figure.

Switching Accountants

If your current fee is poor value, switching is straightforward and not something to fear.

1. Appoint the new accountant. They will ask your permission to contact the old one.
2. The professional clearance letter. The new firm writes to the old one for "professional clearance" and to request your records and handover information. This is routine.
3. Authorise the new agent with HMRC. The new accountant registers as your agent for corporation tax, VAT, PAYE and Self Assessment as needed.
4. Hand over. Your old accountant should pass on records and information promptly. Withholding records over a fee dispute is discouraged by the professional bodies.

The best time to switch is just after a year-end, before the next cycle of work begins. Avoid switching mid-VAT-quarter or right before a deadline.

How AccountsOS Changes the Maths

AccountsOS is built for exactly the directors who look at a £150/month accountant and wonder what they are really paying for. It automates the work that makes up most of a traditional fee:

• Automatic bookkeeping — transactions categorised as they arrive, receipts read and filed, no shoebox.
• Deadline tracking — corporation tax, VAT, the CT600, the confirmation statement and accounts, all calculated from your year-end and flagged well in advance.
• Real-time tax estimates — see your likely corporation tax and VAT position throughout the year, not as a year-end surprise.
• Ask Finn anything — the built-in AI answers questions in plain English using your actual figures, the kind of questions you would otherwise email an accountant and wait days for.

At £9/month for early adopters (£19 standard, free for the Founders Club), it costs a fraction of a monthly accountant package — and many directors pair it with a small annual spend on an accountant for year-end sign-off, landing well below the cost of a full traditional retainer. See how it compares to a traditional accountant.

Frequently Asked Questions

How much does an accountant cost for a small limited company in the UK?

For a typical small trading limited company in 2026, expect £100–£150 a month on a monthly package, or roughly £1,200–£1,800 a year, covering year-end accounts, the CT600, VAT, director-only payroll and the director's Self Assessment. Very simple or dormant companies pay far less; companies with employees or complex affairs pay more.

Is it cheaper to pay an accountant monthly or annually?

It depends on your activity. A simple, low-activity or dormant company is usually cheapest on a one-off annual fee (£500–£1,500) for the accounts and CT600. A trading company with VAT, payroll and regular questions is generally better on a monthly package, where the per-item cost is lower and you are not charged for every query.

Do I legally need an accountant for my limited company?

No. There is no legal requirement to appoint an accountant. You can prepare and file your own accounts, CT600 and other returns. Most directors use an accountant or accounting software because of the time, knowledge and penalty risk involved — but the choice is yours.

Why are accountant quotes so different for the same work?

Because the headline price often covers different things. One quote may include VAT, payroll and Self Assessment; another may quote company work only and add those later. Quotes also vary by your turnover, transaction volume, location and how much bookkeeping you do yourself. Always compare itemised total annual costs, not "from" prices.

How much does an accountant charge to file a CT600?

As a one-off, preparing the statutory accounts and CT600 for a simple company typically costs £500–£1,500 depending on complexity. On a monthly package the CT600 is bundled into the fee rather than billed separately.

Are accountant fees tax-deductible for a limited company?

Fees for the company's accounting work — accounts, CT600, VAT, payroll, company bookkeeping — are an allowable business expense and reduce your corporation tax. The fee for a director's personal Self Assessment is technically a personal cost rather than a company one, so be aware when a quote bundles personal and company work together.

Can I use software instead of an accountant?

Yes. Accounting software (£10–£30/month) or an AI platform such as AccountsOS (£9–£19/month) can handle bookkeeping, VAT, deadline tracking and tax estimates. Many directors run a hybrid: software or AI for the day-to-day, plus a smaller spend on an accountant for year-end sign-off and tax planning, which costs well below a full traditional retainer.

How much does it cost to switch accountants?

Switching itself is usually free — the new accountant requests professional clearance and your records from the old firm. You may face a one-off catch-up fee if your books need tidying, and a few firms charge handover fees, though professional bodies discourage this. The best time to switch is just after a year-end.

What is the cheapest way to stay compliant?

For a simple company, the cheapest compliant route is doing your own books in low-cost software or an AI platform and filing the returns yourself, or paying a one-off annual fee to an accountant. The cost rises with VAT registration, payroll and complexity. The biggest saving you control is keeping your records clean all year so professional time is minimised.

How much does payroll cost through an accountant?

A director-only payroll — one payslip a month with RTI submissions to HMRC — typically costs £10–£25 a month, and is often bundled into a mid-range package. Each additional employee usually adds £5–£15 per payslip. Pension auto-enrolment administration can be charged separately. For a company with several staff, payroll is one of the larger components of the overall fee.

Do I need an accountant in my first year?

Not from day one. A first-year company that has barely started trading has little for an accountant to do until the year-end, and you can keep clean records and track deadlines yourself with software or an AI platform. You do, however, need an accountant or a confident DIY approach by the time your first accounts and CT600 are due — and remember a long first period may need two CT600 returns. Skipping filing because "the company is new" still triggers penalties.

Is a cheap online accountant as good as a local one?

For routine compliance — accounts, CT600, VAT, payroll — a reputable online accountant does the identical job as a local firm, often for less, because filing is fully digital and online firms carry lower overheads. The case for a local accountant is personal relationship and in-person meetings. Judge any accountant, online or local, on professional body membership, responsiveness, clear fixed pricing and reviews — not on their postcode.

Are accountant fees worth it for a small company?

It depends on what you are buying. For pure compliance on a simple company, software or an AI platform plus a one-off annual sign-off is usually better value than a full retainer. For tax planning, complexity, or simply buying back your own time, a good accountant can save more than they cost. The worst value is paying premium fees for a basic compliance service — match the tier to the company.