A clear, practical guide for small businesses, sole traders and landlords
If you run a small business, work for yourself, or let out property, it’s completely reasonable to ask:
“How much does an accountant cost in the UK?”
The honest answer is that costs vary — but they aren’t as mysterious as they’re often made out to be. In this guide, we explain typical UK accounting costs, how they’re usually structured today, and how changes like Making Tax Digital (MTD) affect what businesses actually pay.
How UK Accountants Typically Price Their Services
Most modern accounting firms now work on fixed monthly fees, rather than charging large one-off bills at year end.
Monthly pricing allows for:
- Predictable costs
- Ongoing compliance
- Fewer surprises
- Better tax planning throughout the year
For most UK small businesses, accountant fees broadly fall into these ranges:
- Sole traders & landlords: from £20–£60 per month
- Limited companies: from £60–£250+ per month
- Growing or more complex businesses: higher, depending on activity
What you pay depends far more on what needs doing during the year than on the tax return itself.
What Do Accounting Fees Actually Include?
When people talk about accounting costs — or percentages of turnover — they are usually referring to the total annual cost of staying compliant, not just filing a return.
At Atreus, this typically includes:
- Bookkeeping (monthly, quarterly or annual)
- Bank reconciliations
- VAT and/or MTD submissions (where required)
- End-of-year accounts or tax return
- Ongoing compliance support
It usually doesn’t include:
- One-off advisory projects
- Complex restructuring
- Historical clean-ups outside normal scope
So when you see accounting costs expressed as a percentage, that percentage should be viewed as covering the whole compliance picture, not just the year-end job.
Accounting Fees as a Percentage of Turnover: A Useful Guideline
While every business is different, a sensible rule of thumb in the UK is:
- 0.5% – 1.5%
Simple sole traders or landlords with low transaction volumes - 1.5% – 2.5%
VAT-registered businesses or clients affected by MTD with regular bookkeeping - 2% – 4+%
Limited companies, businesses with payroll, or those needing ongoing monthly support
Businesses at the upper end of these ranges are usually paying for:
- Regular bookkeeping
- More frequent HMRC reporting
- Proactive oversight
- Reduced risk and less stress at year end
In our experience, this is where most growing businesses naturally sit.
How Bookkeeping Affects the Cost
Bookkeeping is usually the main driver of accounting fees, particularly under Making Tax Digital.
Across the UK, bookkeeping typically works out at around:
- £0.50 – £1.50 per transaction
- Depending on volume, frequency, and how tidy the records are
At Atreus, bookkeeping costs are structured transparently:
- Based on transaction volume
- Adjusted by frequency (annual, quarterly, monthly)
- Built into a fixed monthly fee
This ensures:
- Low-volume businesses don’t overpay
- High-volume businesses pay fairly
- Fees scale sensibly as a business grows
Good bookkeeping during the year almost always means lower costs and fewer issues at year end.
Making Tax Digital for Income Tax (MTD for ITSA): What’s Changed?
From April 2026, many sole traders and landlords will be required to follow Making Tax Digital for Income Tax Self Assessment (MTD for ITSA).
This means:
- Keeping digital records
- Submitting quarterly updates to HMRC
- Completing an End of Period Statement (EOPS)
- Filing a final declaration
As a result, accounting costs are no longer driven by the tax return alone, but by:
- How often records are updated
- Who does the bookkeeping
- How many transactions there are
This is why accounting for sole traders and landlords is increasingly priced as a monthly service, rather than a once-a-year fee.
Example Scenarios: What Do Businesses Typically Pay?
Sole Trader (MTD for ITSA)
- £45,000 turnover
- Around 50 transactions per month
- Quarterly MTD reporting required
Typical cost:
- £40–£60 per month
- Around 1%–1.5% of turnover
Landlord with Multiple Properties
- £30,000 rental income
- Quarterly reporting
- Moderate transaction volume
Typical cost:
- £24–£85 per month, depending on who handles bookkeeping
- Around 1%–3% of income
Limited Company (VAT Registered)
- £180,000 turnover
- VAT, director payroll, monthly bookkeeping
Typical cost:
- £120–£250 per month
- Around 2%–3.5% of turnover
These figures are broadly in line with how most UK firms now price ongoing compliance.
Is an Accountant Worth the Cost?
For most businesses, a good accountant:
- Saves more in tax than they cost
- Keeps you compliant with HMRC
- Reduces stress
- Frees up time to focus on running the business
The goal isn’t to pay the lowest possible fee — it’s to pay the right amount for the level of support you actually need.
Final Thought
There’s no single “correct” accounting fee, but there are sensible ranges. If your costs sit broadly in line with your turnover, transaction volume and reporting requirements, you’re usually in the right place.