Accountants Fees For Small Businesses

What Services Are Usually Included in Accountancy Fees?

Here’s what most clients should expect from a standard accountancy service:

Why Fixed Fees Beat Hourly Rates

Some traditional accountants still charge by the hour—often £75–£250 per hour—but this can quickly become unpredictable and expensive.

With fixed fees:

• You know exactly what you're paying

• No surprise invoices

• Better budgeting for your business

• Increased transparency and trust

We built our services to be entirely fixed-price so you can stay in control.

Choosing the Right Accountant: What to Look For

When comparing accountant fees, consider more than just price:

✅ Are they qualified and regulated (e.g. ACCA, ICAEW)?

✅ Do they offer clear pricing with no hidden extras?

✅ Can they support you digitally and remotely?

✅ Do they have experience with your type of business?

✅ Will they file everything directly to HMRC and Companies House?

At The Online Accountants, we tick all of the above—and our reviews speak for themselves.

How to Get Started

1. Choose your service from our range of fixed-fee packages

2. Send your records securely through our online portal

3. We prepare, review and file your accounts and tax returns

4. Stay compliant and avoid penalties—hassle-free

Summary: Typical Accountant Fees in the UK

How to Choose the Right Accountant for Your Budget

Choosing an accountant is about more than just cost. Here are a few pointers to help you decide:

• DIY vs Professional Support – If your tax affairs are very simple (e.g. one employment income), you may not need an accountant. But if you’re self-employed, a landlord, or running a company, a professional often saves you more than they cost.

• Value over Price – The cheapest option isn’t always the best. Poor advice or missed deadlines can lead to penalties far higher than the savings.

• Ongoing Support – Look for an accountant who offers year-round access, not just once-a-year contact.

• Transparency – Fixed fees help avoid surprises and make it easier to budget.

Why Our Clients Choose Us Over Cheaper Alternatives

While you can always find a cheaper accountant, our clients stay with us because:

• We proactively save them money on tax.

• We use leading accounting software like Xero, QuickBooks, Sage and FreeAgent.

• We offer unlimited support — not just once a year.

• We’re fully qualified and regulated by the ACCA.
  

Tips on How to Reduce Your Accountancy Fees

Improve your bookkeeping

This is the easiest way to bring down your accountants fees. Accurate bookkeeping, ideally using proprietary software, will significantly improve how much your accountants charge and enable them to offer you a better price for your year end accounts.

If you're not sure how to do this yourself then perhaps you should consider engaging a professional bookkeeper to handle this for you.

If accountants can see that your trial balance shows debits and credits on the correct side this will give them confidence that entries have been made correctly.

If the profit and loss report figure for the year also appears in the balance sheet retained reserves section this is another good marker.

Using manual records?

We understand that not everyone uses software to maintain their evidence of income and expenditure.

Spreadsheets are fine but should show all sales and expenses net of vat. The payments made out should also be analysed by category totals for the year so that your accountant can easily create detailed accounts for the period end accounts.

We often receive bank statement downloads from clients but these are not sufficient as we cannot be expected to make assumptions on your behalf as to what the expenditure relates to and whether or not they are bona fide business payments or personal expenditure.

Provide a reconciled bank account

If you're using double entry bookkeeping software you should be using the import feature to bring in each transaction from your bank. These should then be matched correctly to customer receipts against outstanding sales invoice to reduce your trade debtors, supplier expense invoices to reduce trade creditors and other items of income and expenditure not running through the control account ledgers.

If your using manual records you should obtain your bank balance at the start of the year, add on your turnover and other capital introduced, deduct your summary of payments made and capital withdrawn by way of directors dividends or directors loan repayments and ideally finish with the closing bank balance as per your bank statement.

If your accountant can see that the bank accounts reconcile you can expect lower fees.

Providing a summary of income and expenditure?

You can also provide your accountant with a summary of income and expenditure. This can be in any format provided the expenses are itemised by expenditure type totals for the whole year.

The types of expenditure we would expect to see are travel, phone, purchases for resale, stationery, advertising, use of home as office, dividends taken, drawings, capital introduced, capital expenditure such as laptops, salaries paid under PAYE schemes, repairs and renewals, light and heating costs and any other category that you consider necessary.

Please see our expenses guide for more help.

Ensure VAT returns are correctly filed through MTD

You should have connected your software to the HMRC Making Tax Digital VAT account on the Government Gateway if registered for VAT and have submitted all VAT returns after checking them thoroughly before placing your order for year end accounts.You should review all the detailed entries that make up each box number on the VAT return.

Another good check is to ensure that all standard rated net sales multiplied by the VAT percentage approximates to the output VAT being declared and the same check should be made for payments made in relation to the input VAT being claimed.

If your advisor can see promptly filed VAT returns with figures that make sense they will gain confidence that the reports produced by your software for year end purposes are not materially deficient in accuracy and provide reduced accountancy bills to you.

Keep well organised self assessment tax records

If you expect your accountant to give you a good price for your personal self assessment tax return you should ensure you are able to provide a good summary of all your savings and rental income.

Rental income and expense summaries should be made for each property individually and for the total portfolio. You should also ensure that any mortgage interest is split out from capital repayments.

Bank interest and dividends also need to be summarised for the year ending 5 April.

Our Expertise

At The Online Accountants, our qualified team (ACCA & ICAEW members) have helped thousands of UK businesses and individuals with their accounting needs. We specialise in:

• Limited companies, contractors, and freelancers.

• Self-employed sole traders and partnerships.

• Landlords and property investors.

• Start-ups looking for tax-efficient structures.

By focusing on fixed fees and digital efficiency, we make professional accounting affordable and accessible nationwide.

Historical Trends in Accountant Prices

Over the past decade, the cost of hiring an accountant in the UK has shifted alongside tax law changes and technology adoption.

• 2015: Most small businesses relied on traditional firms, with fees averaging £500–£1,200 for limited company accounts.

• 2020: Cloud software adoption reduced admin time. Online accountants became more popular, bringing costs down to £400–£800 for many services.

• 2025: With Making Tax Digital in place, fees have stabilised, but value now comes from ongoing tax advice and compliance support rather than just annual filings.

This trend shows that while traditional accountancy fees have risen, online services like ours have kept prices affordable without compromising quality.

Regional Differences in Accountant Charges

Accountant fees often vary depending on where you’re based. High-street accountants in London and the South East tend to charge more than firms elsewhere in the UK. The Online accountants, however, can offer the same expertise at lower, fixed rates.

Accountant Charges vs DIY Accounting

Some people consider filing their accounts themselves to save money. While this can work in simple cases, the risk of mistakes or penalties often outweighs the savings.

Are Accountant Fees Tax Deductible?

Yes — accountant fees are a fully deductible business expense if you’re self-employed, run a company, or earn rental income. This means the cost of preparing and filing accounts reduces your taxable profits.

For employees, the rules are different. You can only claim for accountancy services directly related to employment income, such as tax advice on allowable expenses or help correcting PAYE errors.

Breakdown of Services That Affect Fees

Accountant fees often vary depending on what’s included. Key factors that increase or reduce costs include:

• Turnover and transactions – Higher volumes mean more bookkeeping and checks.

• VAT registration – VAT returns add to the workload.

• Payroll – Running payroll for staff typically incurs extra charges.

• Advisory services – Tax planning, management accounts, and forecasts cost more than basic compliance.

• Frequency – Monthly or quarterly support costs more than annual filings alone.

Being clear about these variables helps you compare like-for-like when choosing an accountant.

Future of Accountant Pricing

As HMRC continues its rollout of Making Tax Digital, businesses will need to file returns more frequently. While this could increase compliance costs for some, automation and cloud tools are helping online accountants keep fees affordable.

Looking ahead, expect fees to remain stable for routine filings, while demand for proactive tax advice may grow as regulations become more complex.

Case Studies & Real Examples

Case Study 1 – Sole Trader

A self-employed photographer joined us on our £399 package. By claiming all allowable expenses correctly, we helped reduce their tax bill by over £1,200 compared to the previous year.

Case Study 2 – Limited Company

A contractor running a personal service company paid £749 for full accounts and filing. We ensured timely submissions to HMRC and Companies House, helping avoid potential late filing penalties of £1,500.