Accountant fees are the biggest single running cost for most one-person limited companies. Knowing what a fair price looks like — and what should be included — helps you avoid overpaying and ensures you’re not left with hidden charges.
What Does a Limited Company Accountant Do?
A good contractor/company accountant typically handles:
| Task | Frequency | Included in most packages? |
|---|---|---|
| Year-end statutory accounts | Annual | Yes |
| Companies House filing | Annual | Yes |
| Corporation Tax return (CT600) | Annual | Yes |
| Monthly payroll (RTI) | Monthly | Yes — most packages |
| Dividend vouchers and board minutes | As needed | Yes — most packages |
| VAT returns | Quarterly | Often — check package |
| Director self-assessment return | Annual | Sometimes — check |
| Companies House confirmation statement | Annual | Sometimes — check |
| IR35 contract review | Per contract | Usually charged separately |
| Bookkeeping | Ongoing | Usually charged separately |
How Much Should You Pay? — Fee Ranges 2026/27
| Service level | Annual cost | Monthly equiv | Who it suits |
|---|---|---|---|
| Basic (accounts + CT only) | £800–£1,200 | £67–£100 | Dormant or minimal trading companies |
| Standard (accounts + CT + payroll) | £1,200–£1,800 | £100–£150 | Active company, director handles SA return |
| Full service (all of the above + SA) | £1,800–£2,800 | £150–£233 | Most one-person contractors |
| Premium (complex/property/multi-director) | £2,800–£5,000+ | £233–£417+ | Multiple shareholders, IR35 complexity |
Most straightforward contractor companies should budget £1,800–£2,400/year.
Online Contractor Accountants — Price Comparison
Several specialist online accountants serve UK contractors with fixed monthly fees:
| Provider | Monthly fee | Annual cost | Key features |
|---|---|---|---|
| Crunch | £149–£199/month | £1,788–£2,388 | Includes software, SA, payroll |
| Gorilla Accounting | £95–£150/month | £1,140–£1,800 | FreeAgent included, SA included |
| Inniaccounts | £89–£139/month | £1,068–£1,668 | Contractor-focused, SA included |
| SJD Accountancy | £130–£185/month | £1,560–£2,220 | Large firm, dedicated accountant |
| Brookson | £140–£200/month | £1,680–£2,400 | IR35 services included |
| The Accountancy Partnership | £90–£150/month | £1,080–£1,800 | Fixed-price, wide service coverage |
Prices approximate — always confirm current rates directly.
What’s Often Charged Separately
Watch out for costs that aren’t included in the advertised package price:
| Extra | Typical add-on cost |
|---|---|
| Director’s self-assessment tax return | £150–£400/year (if not included) |
| VAT registration and returns | £200–£600/year (if not included) |
| IR35 contract review | £150–£400 per contract |
| Company formation | £100–£200 (one-off) |
| Additional directors (payroll) | £50–£150/year per director |
| Bookkeeping support | £50–£150/month |
| Reference letter or mortgage reference | £50–£150 one-off |
Self-assessment is the most common hidden extra. Many cheap packages advertise a low monthly price but exclude the director’s personal tax return — which adds £200–£400/year. Always confirm this is included.
Software — What You’ll Use Day to Day
Most accountants include access to cloud accounting software in their package:
| Software | What it does | Typical cost (if separate) |
|---|---|---|
| FreeAgent | Invoicing, expenses, payroll, VAT | £19/month (free with Mettle or NatWest Business) |
| Xero | Full accounting platform | £16–£47/month |
| QuickBooks | Accounting, VAT, payroll | £15–£45/month |
| Sage Business Cloud | Full accounting | £15–£40/month |
If your accountant includes FreeAgent or Xero in the package, that’s genuine value — the software alone costs £200–£500/year.
How to Choose the Right Accountant
Questions to ask before signing up:
- Is the director’s self-assessment return included?
- Are VAT returns included (if I’m VAT registered)?
- Is payroll (RTI submissions) included?
- What software do you use and do I have access?
- Do I get a named accountant or a team?
- What are your IR35 review fees per contract?
- What notice period is required to leave?
Red flags:
- Very low monthly fee (under £80/month) with no clear explanation of what’s excluded
- No dedicated accountant — only a ticketing system
- Long contract lock-ins (over 12 months) with no performance guarantee
- No experience with your specific industry or IR35
The Value Calculation
An accountant’s job is to ensure you pay the correct tax — no more, no less. For a contractor earning £80,000/year, a good accountant advising on optimal salary/dividend mix can save:
| Tax saving from good advice | Annual value |
|---|---|
| Salary at optimal NI threshold (£9,100) vs higher salary | £2,000–£4,000 |
| Pension contributions via company (employer contributions) | £1,000–£5,000+ depending on amount |
| VAT Flat Rate Scheme benefit (if applicable) | £1,000–£3,000 |
| Total potential saving vs DIY | £4,000–£12,000+ |
Against an accountant cost of £2,000–£2,500/year, this is an obvious net positive.