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How Much Do Tax Accountants Charge for Tax Returns in the UK?

Updated: Dec 19, 2023

On average a typical tax accountant in the UK charges around £250 for annual tax returns like self-assessment tax. However, the actual fee depends upon so many different factors.

Tax accountants are the most important part of any business. They are responsible for ensuring that for example, if you're self-employed you submit the correct amount to HMRC and Companies House on time. They are knowledgeable about the 17,000 pages of UK tax laws and will look over your business's expenses with a thorough eye, identifying every money-saving sector. In order to ensure that you don't pay more tax than you have for, tax accountants operate to ensure that you make use of every exemption and allowance available. Although accountant costs vary in comparison to the typical expense that an accountant will charge for a small-sized business It's important to remember that the amount you pay in fees is usually or in some instances totally offset by the taxes they'll reduce.

How Much Do Tax Accountants Charge for Tax Returns in the UK?

If you're looking for tax accountants for yourself or your small-sized company This article will guide you through the things you need to be aware of. We'll discuss the cost to engage an accountant, the factors that affect the cost of employing an accountant, ways to cut down on accounting costs, the advantages of using a professional for tax returns and whether I need an accountant to file my self-assessment tax return. The cost of an accountant's services is likely to vary depending on the scale of your company as well as the size of your operations along with the kind of service you need. Once you've figured out these details, it's fairly simple to calculate the expected expense for your accounting professional.

Here You Will Find More Information About:

● General Tax Accounting for small companies

● Self-assessment and tax returns

General Tax Accounting for Small Companies

A small business can vary from a self-employed business to a limited company that has between 30 to 50 employees. Accounting for this type of company typically Includes:

● Annual accounts

● Bookkeeping

● Corporation Tax Returns

● Personal tax return of the Director

● Payroll services for the month and year

● Quarterly VAT Returns

● Information on Tax Legislation to Avoid Tax (IR35)

● Your accountant will provide you with daily advice. accountant

This is a pretty basic fundamental program (some accounting firms might provide additional services) and is typically offered at a monthly fixed cost. For smaller companies, This monthly cost could be between 80 to 250£ depending on factors like 5the volume of business, the depth of service, and the location you are in the UK. Companies that have more employees and a higher turnover are likely to be paying more.

Self-Assessment and Tax Returns

Tax accountants cost a single fee for each annual self-assessment return and will generally vary from 250£ to 500£, based on the complexity and size of your financial situation. The fees up to 250£ usually for basic self-assessment. A good tax accountant must be able to reduce at least a portion of the cost by identifying tax savings that are beneficial to you, in addition to the time, they will save you. In certain cases, the tax bill could be reduced to the point where you can save more than the fee of your accountant.

Alternative Ways of Paying Your Accounting Professional

A lot of businesses prefer to pay their tax accountants monthly fees because it provides security. You can, however, pay your tax accountant hourly or for specific services. It is also possible to mix and match services by paying a fixed fee or a monthly charge, or you can pay for more customized services per hour. An accountant who performs the fundamental accounting functions will typically be paid between 10£ to 15£ per hour. Additional services that are more specialized, such as tax planning and guidance could be more costly within the range of 20£ to 35£ per hour.

Do I Need a Tax Accountant in Order to Complete My Self-Assessment Tax Returns?

It is not required to hire an experienced tax accountant to help you with your self-assessment tax returns. You can do them on your own and do not have to seek help from a professional. But, many self-employed persons don't feel confident about their abilities to comprehend the various expenses that are deductible against their profits and attributed directly to the company. An accountant can offer professional services. They run your financial calculations quickly and can also offer advice on which expenses and elements are relevant to your tax returns.

What are the Benefits of Hiring a Professional to Prepare Tax Returns?

One of the biggest aspects, when you are deciding to hire a tax accountant to prepare taxes, is the stress. Although most business owners are aware of tax laws and are able to handle the mathematical aspects involved, HMRC rules can be confusing and challenging to understand. If you do make a mistake on your tax return you have the option of correcting the mistake prior to the deadline for filing. However, if you intentionally fill in incorrect figures, there is the possibility of being investigated or even prosecuted, so hiring an accountant takes the pressure and stress from completing your tax return.

Other benefits are:

● Time Saving

● Ensuring you claim all valid expenses

● Trust in the accuracy of calculations

● Help with what to claim and the best way to declare transactions

The Factors that Affect the Cost of Hiring an Accountant that Determine How Much the Accountants Charge

The expense of hiring an accountant could rise exponentially because of the complexity of their work so it is good to be aware of what can drive costs even higher.

The Kind of Service Required

The type of client who needs assistance from an accountant differs in terms of Limited Companies, Directors of Limited Companies, sole traders and partners, landlords, freelancers, and contractors - and, consequently, the services they'll require will be different. These can include annual books, accounts, tax returns, payroll, VAT returns, advice regarding tax laws, or general advice for week-to-week. The various services are priced differently, this is why it's important to know the exact requirements of your business before you speak with an accountant in order to avoid paying for more than you really require.

The Size and Type of Business You Manage

The amount of turnover in your business and the number of employees will dramatically affect the price you pay for an accountant's service. For instance, the price for payroll for companies with 10-50 employees will cost 60£ to 150£, and for companies with over 100 employees would pay greater than 250£. Furthermore, the number of directors your business has could also affect your total costs and will also determine whether you are self-employed, a freelancer, or a limited company, and your earnings will be different.

If You're Looking for a One-Time Service or an Ongoing Service

One-time accounting charges for basic accounting may cost anywhere from 10£ or 20£ per hour. On the other hand, regular payroll services can be priced between 150£ to 250£ each month. It also further depends if you are being charged a per-hour rate or a fixed rate. In most cases, the per-hour rate amounts to a bigger total than a fixed rate.

If You are Using an Online Service or a Walk-in Service

The business running cost of online tax accountants is less than accountants which requiresStart-Up you to visit them physically. Therefore, online tax accountants can pass this cost advantage to their clients with a reduced accounting fee. So in most cases, the accounting fee of online tax accountants is 10-20% less than regular accountants.

Your Location

The final and most important factor in the price is your location. With the advent of remote work has been gaining momentum and you are now able to seek the assistance of an accountant who isn't in the immediate vicinity. If you work in a city that is capitalist like London you are likely to pay a lot more for similar services in more rural, less metropolitan locales.

Given this, we still need to know what exactly tax accountants, charge as their service charges for different types of tax-related services. Following is a table that shows the average fee charged by a typical tax accounting firm in the UK, in 2023:


Business Turnover / Size

Typical Fee

Annual Accounts Submission

£20,000 to £30,000

£200 - £350

​£100,000 to £130,000


£250,000 to £300,000


Annual Accounts for Ltd. Com.

​£400 - £700

​Partnership Tax Return

​£20,000 to £30,000

​£200 - £300

​£100,000 to £130,000


​£250,000 to £300,000


​Payroll Services (incl. PAYE)

​Upto 25 employees

​£150 per month

​Upto 50 employees

​£250 per month

​Upto 100 employees

£500 per month

​Self-Assessment Tax Returns

​£150 - £300

​Director’s Tax Return


​VAT Returns

​£0 to 100,000


​£100,000 to 200,000


​£200,000 to 400,000


​Corporate Tax Returns

​£100,000 to 200,000


​£200,000 to 400,000


​£200,000 to £1Million


​CIS Tax Returns

​Upto 1 Sub Contractor


​Upto 2 Sub Contractors


​​Upto 4 Sub Contractors


​CIS Refund Claim

​£50 - £100

​Taxes on Rental Income

​Upto 2 Properties


​Capital Gains Tax Return

​On 1 Source


​Sole Trader Tax Return

​Less Than £30,00/Start Up


​Claim For Overpayment


​Typical HMRC Enquiry


​£100 - £200

​Complex HMRC Enquiry


​£400 - £800

How Much Do Tax Accountants Charge in the UK?

How Can I Save Money on Accounting Fees?

As we know how the cost of accounting can rise, it's time to think about how you can cut down on cash on these services. If you're self-employed, making use of an online platform could be an excellent option to consolidate your finances throughout the year, giving you more clarity about your finances. Platforms like Xero can assist you in this to get your accounts organized for tax filing and cost less than hiring an accountant. In this case, you'll pay an annual or monthly cost for the platform, which is likely to be lower than the charge for one-off accountancy.

Another thing to think about is the time frame. Although it may be appealing to employ an accountant throughout the year, it's not required for the size of your business or the amount of turnover. It's likely that you'll need a one-time service, particularly for smaller businesses, whereas larger enterprises may require an arrangement that is more long-term for payroll and VAT tax returns.

Take note of this prior to signing any contract or agreement to ensure that you don't pay for a service more than you actually require it. Always be aware of hidden fees. This is particularly important when you sign larger contracts, as you could be paying a lot more than you expected.

It's also important to verify the charges associated with self-assessments and VAT returns that could sometimes increase the total payable amount. Some firms may offer bespoke packages of services to suit your needs. It's worthwhile to do some investigation into an accountant who best meets your requirements rather than choosing the cheapest offer and finding out that your needs aren't covered.

Having said all this, you need to understand that saving non-essential accounting expenses is one thing but not hiring an accountant cannot be a good idea. You actually may be spending twice the amount on taxes and the organization of the company’s financial record, if you try to do it yourself. An accountant may actually be saving you money on these things.

How Pro Tax Accountant Offers Top-Notch Accounting Services at the Most Affordable Price

The Digital Advantage

In today's fast-paced world, the need for efficient and reliable accounting services is more crucial than ever. Pro Tax Accountant has revolutionized the accounting landscape by offering top-notch services at an affordable price, thanks to their online business model. The digital platform eliminates the need for physical offices and in-person consultations, significantly reducing overhead costs. These savings are then passed on to the clients, making professional accounting services accessible to businesses and individuals alike.

Comprehensive Online Services

Pro Tax Accountant offers a wide array of accounting services, from tax preparation and financial planning to business consulting and audit support. Their online platform is user-friendly and intuitive, allowing clients to upload documents, schedule virtual consultations, and even track the progress of their financial reports in real-time. This comprehensive approach ensures that clients receive the same level of expertise and attention to detail as they would from traditional accounting firms, but at a fraction of the cost.

Expertise at Your Fingertips

The firm employs a team of certified accountants and financial experts who are well-versed in the latest tax laws, accounting principles, and financial strategies. Clients can schedule one-on-one virtual consultations with these experts to discuss their specific financial needs and goals. This personalized approach ensures that each client receives tailored solutions that are both effective and budget-friendly.

Transparency and Trust

One of the standout features of Pro Tax Accountant is their commitment to transparency. Their online platform provides clients with detailed breakdowns of all services and associated costs, eliminating any hidden fees or surprises. Clients can also access a variety of educational resources, including articles, webinars, and tutorials, to help them make informed financial decisions. This level of transparency builds trust and fosters long-term relationships, further enhancing the firm's reputation for affordability and reliability.

Scalability and Flexibility

The online model also offers unparalleled scalability and flexibility. Whether you're a small business owner looking for basic bookkeeping services or a large corporation in need of complex financial analysis, Pro Tax Accountant has the resources and expertise to meet your needs. Their scalable services mean that you only pay for what you need, making it an affordable option for businesses of all sizes.

Time-Saving Convenience

In addition to being cost-effective, the online model is incredibly convenient. Clients can access Pro Tax Accountant's services from anywhere, at any time, saving them the time and effort of traveling to a physical office. This convenience is especially beneficial for businesses with tight schedules or those located in remote areas, where access to quality accounting services may be limited.

Customized Packages and Discounts

To make their services even more affordable, Pro Tax Accountant offers customized packages designed to meet the unique needs of each client. They also provide seasonal discounts and loyalty programs, further reducing the financial burden on businesses and individuals. These customized solutions not only make professional accounting services more accessible but also ensure that clients receive the best value for their money.


Pro Tax Accountant has successfully leveraged the power of digital technology to offer top-notch accounting services at the most affordable prices. Their online business model reduces overhead costs, allowing them to pass the savings onto their clients. With a comprehensive range of services, expert staff, and a commitment to transparency and trust, Pro Tax Accountant stands as a testament to how quality and affordability can go hand in hand in the accounting industry.

20 Most Important FAQs

1. Q: Do tax accountants charge extra for advice on tax-efficient investments?

A: Tax accountants may charge additional fees for specialized advice on tax-efficient investments.

2. Q: Is there a separate charge for handling tax audits or enquiries from HMRC?

A: Yes, handling tax audits or enquiries from HMRC may incur separate charges due to their complexity and time requirement.

3. Q: Are there any additional costs for expedited tax return services?

A: Some tax accountants might charge extra for expedited services, especially during busy periods like tax season.

4. Q: How are fees structured for tax planning and future financial forecasting?

A: Fees for tax planning and financial forecasting can be structured as a fixed price or an hourly rate, depending on the complexity of the work.

5. Q: Do accountants charge for initial consultations regarding tax returns?

A: This varies by firm; some accountants offer free initial consultations, while others may charge a fee.

6. Q: Are there different charges for personal versus corporate tax returns?

A: Yes, corporate tax returns are generally more complex and can be more expensive than personal tax returns.

7. Q: How does an accountant's experience level affect their fees for tax return services? A: More experienced accountants typically charge higher fees due to their expertise and ability to navigate complex tax situations.

8. Q: Are there additional fees for handling international aspects of tax returns?

A: Yes, dealing with international tax issues can be more complex and may result in additional fees.

9. Q: Do accountants charge separately for filing tax returns electronically?

A: Generally, electronic filing is included in the service, but it's best to confirm with the accountant.

10. Q: How much do accountants charge for advice on capital gains tax?

A: Fees for capital gains tax advice vary, depending on the complexity of the assets and transactions involved.

11. Q: Are fees for tax return services negotiable?

A: Some accountants may be open to negotiating fees, especially for long-term clients or large projects.

12. Q: Do accountants offer packages for ongoing tax advice throughout the year? A: Many accountants offer packages for ongoing services, which can be more cost-effective than one-off consultations.

13. Q: How do accountants charge for assistance with tax credits and reliefs?

A: Charges for helping with tax credits and reliefs depend on the specific nature and complexity of the claims.

14. Q: Are there any extra costs for responding to HMRC penalties or disputes? A: Handling disputes or penalties with HMRC can be complex and may incur additional costs.

15. Q: Do tax accountants charge for assistance with inheritance tax planning?

A: Yes, specialized services like inheritance tax planning typically come with additional charges.

16. Q: How are charges determined for retrospective tax return amendments? A: Charges for amending past tax returns depend on the extent of changes and the complexity involved.

17. Q: Are there additional fees for VAT registration and returns?

A: VAT registration and return services may incur separate fees, particularly if they are not part of regular tax return services.

18. Q: Do accountants charge for advice on tax-efficient charitable giving?

A: Some accountants may charge for providing tailored advice on tax-efficient charitable giving.

19. Q: Are there different fees for sole traders compared to limited companies?

A: Yes, due to the differing complexities, the fees for sole traders and limited companies can vary.

20. Q: How much do accountants charge for advice on tax implications of business restructuring?

A: The fees for such advice depend on the scale and complexity of the business restructuring involved.


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