Not every business needs a monthly bookkeeping subscription. If you run a straightforward limited company with few transactions, paying a fixed fee accountant UK firm for year-end accounts and a CT600 corporation tax return might be the smarter option.

The standard model in UK accountancy is a monthly or quarterly package. It includes bookkeeping, VAT returns, payroll, management accounts, and the year-end compliance work. That works well for growing businesses. But it is expensive for a business that only needs the statutory annual filings.

A fixed fee for annual accounts only exists. It is less common, but it is a legitimate service model. This post explains exactly what you get, what you do not get, and whether it makes sense for your business.

What Does a Fixed Fee Accountant UK Service for Year-End Accounts Include?

A true year-end only service covers the statutory obligations of a UK limited company. You get the annual accounts prepared in accordance with FRS 102 or FRS 105 (depending on your company size). You get the CT600 corporation tax return filed with HMRC. You get the confirmation statement filed with Companies House.

That is the core. Some firms also include a tax planning review as part of the fixed fee. Others charge extra for that. You need to check the scope before you sign.

Here is what a typical fixed fee year-end service covers:

  • Preparation of statutory annual accounts (abridged, micro-entity, or full)
  • CT600 corporation tax return with supporting computations
  • Confirmation statement filing
  • Director's report and strategic report (if required)
  • Advice on dividend declarations and director's loan account balances
  • Corporation tax payment calculation and deadline reminders

What it does not cover is the day-to-day bookkeeping. You provide the records. The accountant takes your trial balance, source documents, or a completed bookkeeping file and turns it into statutory accounts.

Who Is This Service For?

The fixed fee year-end only model suits specific types of business. The common thread is low transaction volume and straightforward finances.

Contractors and Freelancers With a Limited Company

A contractor working through their own limited company often has a simple financial profile. One income stream. A few regular expenses. Maybe a pension contribution and a dividend each quarter. No stock. No debtors beyond a few days of invoices. No complex VAT schemes.

For that contractor, paying a monthly bookkeeper to process 10 transactions a month is wasted money. A fixed fee for the year-end work makes more sense.

Small Property Companies

A limited company holding a single buy-to-let property has a handful of transactions each month. Rent received. Mortgage interest. Maintenance costs. Insurance. That is about it. The year-end accounts are simple. The CT600 is straightforward.

Again, a monthly subscription is overkill. A fixed fee for the annual compliance work is the right fit.

Dormant or Low-Turnover Companies

If your company has been dormant or trading at very low levels, the annual filing requirements are minimal. You still need to file accounts and a confirmation statement. A fixed fee accountant UK firm can handle that without locking you into a recurring monthly cost.

What You Need to Provide

If you choose a year-end only service, the quality of what you give the accountant determines the final fee. The accountant is not doing your bookkeeping. You need to deliver a complete and accurate set of records.

At minimum, you need:

  • A trial balance or detailed nominal ledger
  • Bank statements for the full financial year
  • Sales invoices and purchase invoices (summarised or listed)
  • Loan account statements if you have drawn from or lent to the company
  • Details of any asset purchases or disposals
  • VAT returns if you are registered
  • Payroll records and RTI submissions if you employ anyone

Some accountants accept a spreadsheet with income and expenses categorised. Others want the raw data from accounting software like Xero, QuickBooks, or FreeAgent. Check what format your accountant expects before the year-end.

If your records are incomplete or messy, the fixed fee may not hold. Most firms quote based on the assumption of clean records. If the accountant has to reconstruct your transactions from bank statements, expect a higher fee or a time-based charge.

How Much Does a Fixed Fee Accountant UK Charge for Year-End Accounts?

Pricing varies significantly by location, complexity, and the firm's target market. For a simple limited company with under 50 transactions per month, expect a fixed fee between £500 and £1,200 per year for the year-end accounts and CT600.

For a contractor company with one director, no employees, no VAT, and a single income stream, the lower end of that range is realistic. For a small trading company with stock, debtors, creditors, and VAT, expect the higher end.

Some firms offer a fixed fee for the first year at a lower rate to win the business, then increase it in year two. Ask for a written quote that holds for at least two years if possible.

Compare that to a monthly package. A typical monthly subscription for a small limited company starts at £100 to £250 per month. That is £1,200 to £3,000 per year. The year-end only model saves you money if you do the bookkeeping yourself.

The Hidden Costs of a Year-End Only Service

A fixed fee for annual accounts sounds cheap. But there are trade-offs you need to understand.

No Ongoing Tax Planning

If you only see your accountant once a year, you miss the opportunity for proactive tax planning. A good accountant will spot things mid-year that save you tax. A missed pension contribution. A timing issue on a dividend. A capital allowance claim that needs to happen before the year-end.

With a year-end only service, the accountant works with what you give them. They can still advise on the final numbers. But they cannot steer you during the year.

No Bookkeeping Support

If you get stuck on a bookkeeping question in June, you cannot call your accountant without incurring extra charges. Some firms include ad-hoc support in the fixed fee. Most do not. You either figure it out yourself or pay for the time.

No VAT Returns

If you are VAT registered, the year-end only service does not cover your VAT returns. You either prepare and file them yourself, or you pay extra for that work. Some accountants offer a separate fixed fee for VAT returns on top of the year-end fee.

No Payroll

If you employ staff or take a salary through PAYE, the year-end only service does not cover payroll. You need a separate payroll arrangement. That can be a cheap RTI software subscription if you do it yourself, or an additional cost if the accountant handles it.

When a Monthly Package Beats a Fixed Fee Year-End Service

The year-end only model is not right for every business. If any of these apply to you, a monthly package is probably better value:

  • You have more than 100 transactions per month
  • You are VAT registered and want the accountant to handle returns
  • You employ staff and want payroll managed
  • Your business has stock, multiple income streams, or complex debtors
  • You want regular management accounts to track performance
  • You need ongoing tax advice and planning

A monthly package spreads the cost across the year and gives you access to the accountant when you need it. For a growing business, that access is often worth the premium.

How to Choose a Fixed Fee Accountant UK Firm for Year-End Accounts

Not every firm offers a year-end only service. Many push the monthly subscription model because it gives them predictable recurring revenue. You need to find a firm that understands the model and prices it fairly.

Look for these signals:

  • Clear scope of work. The quote should list exactly what is included and what is not.
  • No hidden extras. Ask if the fee covers the confirmation statement, Companies House filing, and HMRC correspondence.
  • Fixed for at least one year. The fee should not change unless your business structure changes significantly.
  • ICAEW or ACCA qualified. You want a qualified professional signing off your accounts, not an unregulated bookkeeper.
  • Software compatibility. Make sure they can work with whatever accounting software you use.

As ICAEW qualified accountants, we see both models work well for different clients. The key is matching the service to the business, not the other way around.

What Happens at Year-End With a Fixed Fee Service

The process is straightforward. You send your records to the accountant after your year-end date. The accountant prepares the accounts and CT600. You review and approve them. The accountant files them with Companies House and HMRC.

You then get a copy of the filed accounts, the CT600 receipt, and a note of any corporation tax due. The payment deadline is 9 months and 1 day after your year-end for most small companies. The filing deadline is 9 months after year-end for the CT600, and 9 months for the annual accounts at Companies House.

If you miss the filing deadline, Companies House charges late filing penalties starting at £150. HMRC charges interest and penalties on late corporation tax. The fixed fee service includes reminders, but the responsibility to provide your records on time is yours.

Can You Switch Mid-Year?

Yes. You can move from a monthly package to a year-end only service at any point. The best time to switch is after your year-end accounts have been filed. That gives the new accountant a clean starting point.

If you switch mid-year, the new accountant will need to pick up the bookkeeping from the last filed year-end. That is manageable if your records are in order. If they are not, expect a catch-up fee.

If you are currently with a monthly subscription firm and want to move to a year-end only service, check your contract. Some firms lock you in for a minimum term. Others require notice. Read the terms before you switch.

Summary: Does a Fixed Fee Accountant UK Service for Year-End Accounts Work?

Yes, for the right business. If your finances are simple, your transaction volume is low, and you are comfortable handling the day-to-day bookkeeping yourself, a fixed fee for annual accounts is cost-effective. You pay for what you need and nothing more.

If your business is growing, has complex finances, or you want proactive tax advice, a monthly package is better value despite the higher cost. The ongoing support and planning will save you more than the subscription costs.

The key is knowing which category you fall into. If you are unsure, speak to an accountant. A good one will tell you honestly which model suits your business, even if it means a lower fee for them.

If your company has straightforward finances and you want a fixed fee for year-end accounts and the CT600, get in touch. We can quote you a fixed price based on your specific situation.

For more on how limited company tax works, see our limited company tax guide. If you are considering incorporating, our incorporation page covers the setup process.