Accountants can charge a variety of different ways and their rates can differ based on a range of factors, including location, experience level and specialism. Read our guide to find out more about accountant fees and what to expect them to charge.
Accountant hourly rates
An accountant’s hourly rate will depend on the services you require, their expertise level and, if you need an accountant for your business, how big it is. These days, many accountants charge a fixed fee or percentage, but if you do find an accountant that charges hourly it could be anywhere between £30-£250.
An accountant will charge the lower end of the scale for simple admin tasks like bookkeeping and chasing invoices, but if you want your accountant to help you forecast for the coming years or complete a cost-benefit analysis, they’re much more likely to charge at the top end.
The problem with charging hourly is that you won’t know the exact cost until the work is done. You may find that it works better for you to ask your accountant to charge you a fixed fee for the services you need.
How much does an accountant cost per month?
How much an accountant costs per month will depend on what you need and how big your business is. If you want an accountant to handle your admin like invoicing, bank reconciliation and general bookkeeping along with payroll services, expect to pay at least £300 per month, but it could be more depending on your turnover.
How do accountants calculate fees?
Accountants calculate their fees in a number of different ways:
By the hour: An hourly rate is usually used for regular retainers to provide accounting and bookkeeping services for businesses.
Fixed fee: Accountants often use fixed fees for tasks such as preparing and filing your Self Assessment tax return.
By percentage of revenue: If you’ve appointed your accountant to help you with your business’ finances, they may charge you a percentage of your revenue.
When calculating their fees, accountants may take the following into account:
The task and how difficult it is
Their experience level
Their overheads
Whether you’re an individual, a sole trader or a limited company
All of these factors will influence how much an accountant charges you.
How much does an accountant charge for a tax return?
How much an accountant will charge for a tax return depends on how complicated your finances are. On average, an accountant will charge a one-off fixed fee of between £150-£250 for a straightforward tax return, but if you have more complex finances, for example you are employed but also gain income from a rental property or your income streams are unpredictable, you could pay £300 or more.
Small business accountant fees
A small business might be just one sole trader to a limited company with up to 50 members of staff, so accountant fees can vary. Accountants usually deliver relevant services to small businesses as a package. These services may include:
Annual accounts
Corporation tax returns
Payroll services
VAT returns
Bookkeeping
Ongoing advice
For very small businesses, accountants may charge as little as £50 for a package like this. However, for small limited companies, they may charge £250 per month or more. How much your accountant charges you is often linked to your turnover.
Limited company accountant fees
If you own a limited company with more than 50 employees and need an accountant, they are likely to charge you more than they would for a small business.
For the services listed above plus extras such as filing the director’s tax return, completing forecasts or cost benefit analysis, offering advice on IR35 and other legislation as well as general ad-hoc advice, expect to pay between £300-£500 per month. The higher your turnover, the more you should expect to pay.
