What Does "Fixed Fee" Actually Mean for UK Accountants?

A fixed fee accountant in the UK charges a set monthly or quarterly amount for a defined scope of work. You pay the same amount each month regardless of how many transactions you process, within reason. The fee does not change if you have a quiet month or a busy one.

Most fixed fee packages cover the core compliance work: annual accounts, corporation tax return (CT600), personal tax return (SA100), and your confirmation statement. Some include bookkeeping, VAT returns, and payroll. Others charge extra for those.

As ICAEW qualified accountants, we see clients come to us after being hit with unexpected bills from firms that charge by the hour. A fixed fee removes that uncertainty. You know your monthly cost from day one.

Fixed Fee Accountant UK: Pricing by Business Type

Pricing varies by firm, location, and complexity. But here are the typical ranges for a fixed fee accountant in the UK for the 2025/26 tax year.

Sole Traders and Freelancers

Typical monthly fee: £50 to £120 per month

A sole trader with straightforward income from one or two clients, limited expenses, and no VAT will pay towards the lower end. A freelance consultant in Bristol turning over £60,000 with quarterly invoices and regular expenses might pay £80 per month.

What is typically included:

  • Self assessment tax return (SA100 and SA103 if self-employed)
  • Profit and loss calculation
  • Tax planning advice
  • HMRC correspondence handling

What is often extra: bookkeeping, VAT returns, MTD for ITSA compliance (mandatory from April 2026 for income over £50,000), and any HMRC investigations.

Limited Companies (Single Director, Simple Accounts)

Typical monthly fee: £100 to £200 per month

This covers the most common setup: one director, one shareholder, straightforward trade income, under 100 transactions per month. A freelance software developer in Shoreditch running their own limited company would pay around £130 to £170 per month.

What is typically included:

  • Annual accounts prepared under FRS 102 Section 1A
  • Corporation tax return (CT600)
  • Confirmation statement filing
  • Personal tax return (SA100) for the director
  • Dividend paperwork and minutes
  • Ongoing tax planning (salary vs dividend optimisation)

What is often extra: bookkeeping, VAT returns, payroll (RTI submissions), company secretarial work, and any R&D tax credit claims.

Limited Companies (Multi-Director, More Complex)

Typical monthly fee: £180 to £350 per month

Add a second director, multiple shareholders, or a spouse shareholder with alphabet shares, and the fee rises. A husband-and-wife limited company running a Birmingham café with a turnover of £250,000, VAT registered, with two employees would pay around £250 to £300 per month.

What is typically included: everything in the single-director package, plus multi-director tax returns, shareholder dividend allocations, and more complex corporation tax computations (marginal relief calculations if profits sit between £50k and £250k).

What is often extra: payroll for employees beyond directors, CIS returns if you work in construction, and any HMRC compliance checks.

Contractors (Inside and Outside IR35)

Typical monthly fee: £100 to £180 per month

Contractors working through their own limited company typically pay similar fees to single-director limited companies. The key difference is that your accountant should understand IR35 inside out. If you are inside IR35, your accountant should be handling deemed employment payment calculations. If outside, they should be supporting your status determination process.

A contractor in MediaCity, Salford, outside IR35, paying themselves salary and dividends, with no VAT, would pay around £130 per month. Add VAT registration and the fee might hit £160.

What is typically included: annual accounts, CT600, personal tax return, confirmation statement, and dividend planning.

What is often extra: IR35 contract reviews, VAT returns, and any HMRC enquiries into your IR35 status.

Partnerships

Typical monthly fee: £100 to £250 per month

Partnerships require a partnership tax return (SA800) in addition to each partner's personal return. The fee depends on the number of partners and the complexity of the profit-sharing agreement. A two-partner architectural practice in Glasgow's Merchant City would pay around £150 per month.

What is typically included: partnership tax return, each partner's personal tax return, profit allocation calculations, and capital account tracking.

What is often extra: bookkeeping, VAT returns, and any partnership agreement reviews.

What Triggers Extra Charges on a Fixed Fee?

Every firm defines their fixed fee scope differently. These are the most common triggers for additional charges:

  • High transaction volumes. Most fixed fees assume under 100 to 150 transactions per month. If you are processing 500 invoices and receipts, expect a higher fee.
  • VAT returns. Many firms include one VAT return per quarter in the standard fee. Some charge extra, typically £30 to £60 per return.
  • Payroll. Running monthly RTI payroll for employees beyond directors often adds £20 to £50 per month.
  • CIS returns. Construction industry scheme returns (CIS300) are usually charged separately, £30 to £60 per return.
  • R&D tax credits. Preparing an R&D claim, including the Additional Information Form (R&D AIF), is specialist work. Fees range from £500 to £2,000 per claim depending on complexity.
  • HMRC investigations. If HMRC opens a compliance check, most fixed fee arrangements do not cover the time spent responding. This is typically charged at an hourly rate or a separate fixed fee.
  • Company formations. Setting up a new limited company is usually a one-off fee of £50 to £150, separate from the monthly fee.
  • Year-end adjustments. If your bookkeeping is behind or inaccurate, the accountant will charge extra to sort it. This is avoidable if you keep your records up to date.

How to Compare Fixed Fee Accountants in the UK

Do not compare on price alone. A £100 per month accountant who charges extra for everything will cost you more than a £150 per month accountant who includes VAT, payroll, and bookkeeping.

Here is what to ask before signing up:

  • What exactly is included in the monthly fee? Get the list in writing.
  • What triggers extra charges? Ask for their fee schedule for additional services.
  • Who will handle my work? A senior accountant or a junior? You want to know who you will deal with.
  • What software do you use? If you use Xero or FreeAgent, make sure your accountant works with it. Some firms only use Sage or QuickBooks.
  • Do you offer a fixed fee for the first year? Some firms offer a discounted rate for year one to attract new clients.
  • Are you ICAEW qualified? Not all accountants are. ICAEW chartered accountants have passed rigorous exams and follow a strict code of ethics.

Is a Fixed Fee Accountant Right for Your Business?

A fixed fee accountant works well if you have predictable monthly transactions and want certainty on costs. It works less well if your business is highly seasonal with huge swings in activity, or if you need significant ad hoc advice throughout the year.

For most small UK businesses, a fixed fee is the right choice. You are not paying for the accountant to learn your business every time you call. They already know it because they see your numbers every month.

If you are a limited company director paying yourself salary and dividends, a sole trader approaching the VAT threshold, or a contractor navigating IR35, a fixed fee arrangement gives you clarity. You can budget for your accounting costs and focus on running your business.

What You Should Do Next

If your current accountant charges by the hour and you are tired of unpredictable bills, switch to a fixed fee arrangement. If you are setting up a new business, find an accountant who will quote you a fixed monthly fee from the start.

We offer fixed fee packages for limited companies, sole traders, contractors, and partnerships across the UK. Contact us for a quote based on your specific circumstances. We will tell you exactly what is included and what is not, no surprises.

You can also read our services page for more detail on what each package covers, or check our limited company tax blog for guidance on salary and dividend planning.