If you are a director of a UK limited company, the cost of preparing and filing your annual accounts is one of the first questions you will ask. It is also one of the hardest to get a straight answer on.
Some accountants quote £400 a year. Others quote £2,500. Neither figure is necessarily wrong, but they are almost certainly describing different businesses.
The real limited company accounts cost in 2025/26 depends on three things: your turnover, your transaction volume, and the complexity of your tax affairs. Here is how to work out what you should be paying and why.
The Short Answer: What Range Should You Expect?
For a straightforward limited company with a single director, modest turnover, and no employees, the typical fee for annual accounts and corporation tax work is between £600 and £1,200 a year. That includes preparing the statutory accounts, filing the CT600 (corporation tax return) with HMRC, and filing the accounts with Companies House.
If you also need payroll processing, VAT returns, or self assessment for the director, the price rises. A full-service package for a small trading company with payroll and VAT might land between £1,200 and £2,000 a year.
For larger businesses, companies with complex share structures, or those claiming R&D tax credits, the limited company accounts cost can exceed £3,000 a year. That reflects the additional work and technical expertise required.
What Is Actually Included in the Price?
Before comparing quotes, you need to understand what "accounts" covers. The core services are:
- Preparation of statutory accounts (profit and loss, balance sheet, notes)
- CT600 corporation tax return and computation
- Filing with Companies House
- Filing with HMRC
- Confirmation statement (previously annual return)
- Advice on year-end tax planning
Most accountants will also include bookkeeping for the year-end adjustments, but they may not include regular monthly bookkeeping. That is a separate service and a separate cost.
What Is Typically Extra?
These are the services that push the price up:
- Monthly or quarterly bookkeeping using software like Xero, FreeAgent, or QuickBooks
- Payroll processing (RTI submissions, payslips, pension auto-enrolment)
- VAT returns (quarterly or monthly)
- Director's self assessment tax return (SA100)
- Company secretarial work beyond the confirmation statement
- R&D tax credit claims
- Capital allowance reviews (especially for property companies or those with significant asset purchases)
- Ad hoc tax planning (dividend strategy, pension contributions, share restructuring)
A firm quoting £400 for "accounts" is almost certainly excluding most of the items above. Read the scope of work carefully before you sign.
What Drives the Price Up?
Accountants price on time and risk. More time means a higher fee. Higher risk (complex tax positions, late filing, poor records) also means a higher fee. These are the main factors:
Turnover Level
Turnover is the single biggest driver of cost. A company turning over £40,000 takes less time to work on than one turning over £400,000. The latter has more transactions, more supplier invoices, more reconciling items, and more tax considerations. Expect to pay roughly 50% to 100% more for a company at £400k turnover compared to one at £50k.
Transaction Volume
Two companies can have the same turnover but very different transaction volumes. A consultancy with 50 invoices a year is quick to process. An ecommerce business with 5,000 transactions a month is not. Accountants often price on bank transaction volume or the number of sales invoices and purchase invoices.
Record Keeping Quality
If you hand over a shoebox of receipts and a bank statement, you are paying for the accountant to organise your records. If you use accounting software and have reconciled your bank account to the penny, the accountant's work is largely a review and a tax computation. The difference can be hundreds of pounds a year.
Complexity of the Tax Position
Multiple director shareholders, alphabet shares, associated companies, overseas transactions, property income, R&D claims, or capital gains on asset sales all add complexity. Each one requires additional work and additional technical knowledge. The limited company accounts cost rises accordingly.
Typical Fee Ranges for 2025/26
These are realistic ranges for an ICAEW qualified firm like Holloway Davies. Your actual quote will vary, but this gives you a benchmark.
| Business Type | Annual Fee Range (2025/26) |
|---|---|
| Solo director, £30k-£80k turnover, no employees, no VAT | £600 to £1,000 |
| Solo director, £80k-£200k turnover, basic payroll, VAT | £1,000 to £1,800 |
| Small Ltd, 2-4 directors, £200k-£500k turnover, payroll, VAT | £1,500 to £2,500 |
| Growing company, £500k-£1M turnover, multiple staff, VAT, CIS | £2,500 to £4,000 |
| Company with R&D claims | £3,000 to £6,000+ |
These fees typically include the core accounts and corporation tax work plus the extras listed in the scope. Always confirm what is included before agreeing a price.
Fixed Fee vs Time Spent: Which Is Better?
Most small and growing companies prefer a fixed annual fee. You know what you are paying, you budget for it, and there are no surprises at year end. A fixed fee works well when the scope of work is clear and the records are well kept.
Some accountants charge by the hour, typically between £100 and £250 an hour depending on the seniority of the person doing the work. Hourly billing can work if you have a very simple company and want to pay only for the time used, but it can also lead to unpredictable bills if the work takes longer than expected.
For most directors, a fixed fee with a clearly defined scope is the better option. It removes the risk of cost overruns and aligns the accountant's incentive with getting the job done efficiently.
How to Get a Fair Price
If you are shopping around for a new accountant, or negotiating with your current one, here is how to get a fair limited company accounts cost:
- Be honest about your records. If your bookkeeping is messy, say so. A good accountant will quote higher to reflect the extra work, but at least you know the true cost upfront.
- Ask for a scope of work. What exactly is included? Is the confirmation statement included? Are director self assessments included? Is VAT included? Get it in writing.
- Ask about software. If the accountant uses Xero or FreeAgent, ask whether the software subscription is included or charged separately. Some firms bundle it. Others charge extra.
- Ask about hidden extras. What happens if HMRC opens an enquiry into your return? Is that covered, or is it a separate charge? Most firms charge extra for enquiry work.
- Check the firm's qualifications. An ICAEW qualified firm like ours brings a level of technical expertise and professional indemnity cover that a less qualified firm may not. That is worth paying for.
Is It Worth Paying More for a Better Accountant?
In most cases, yes. A cheap accountant who files your accounts late, misses tax reliefs, or fails to spot an error can cost you far more than the fee you saved. Late filing penalties for a private company start at £150 and rise to £1,500 for a six-month delay. Missed capital allowances or incorrect dividend planning can cost thousands in unnecessary tax.
A good accountant does not just file your accounts. They help you plan your dividend strategy, structure your salary efficiently, time your pension contributions, and manage your director's loan account. That ongoing advice is where the real value sits.
If you are a director of a growing company, paying £1,500 to £2,000 a year for a full-service accountant is a business expense that typically pays for itself several times over in tax saved and penalties avoided.
What About DIY Accounts?
Some directors file their own accounts using software like FreeAgent, Crunch, or even HMRC's free filing tools. That works if your company is very simple: one director, no employees, no VAT, no property income, no overseas transactions.
But the risk is real. Corporation tax is not like self assessment. The rules on disallowable expenses, capital allowances, and related party transactions are more complex. Filing an incorrect CT600 can trigger an HMRC enquiry, which is time consuming and stressful to deal with alone.
Our view at Holloway Davies is that DIY accounts are viable for the simplest companies, but the moment you have employees, VAT, or significant assets, you should use a qualified accountant. The limited company accounts cost is a deductible business expense anyway.
How We Price at Holloway Davies
We are an ICAEW qualified firm working with UK businesses of every shape. We do not have a single price for accounts because every business is different. Instead, we quote based on your specific circumstances after a free, no obligation conversation.
Our typical range for a straightforward limited company with one director and turnover under £100k is between £600 and £900 a year. That includes the accounts, CT600, confirmation statement, and year end tax planning advice. If you need payroll, VAT, or director self assessment, we add those at transparent, pre-agreed rates.
If you want a quote for your company, contact us. We will ask about your turnover, transaction volume, and record keeping. Then we will give you a fixed fee in writing. No surprises.
Final Thoughts
The limited company accounts cost in 2025/26 ranges from around £600 for a simple single-director company to £3,000 or more for a growing business with complex tax affairs. The price reflects the time required, the complexity of your tax position, and the quality of your records.
Do not choose an accountant on price alone. Choose one who understands your business, communicates clearly, and can demonstrate the technical expertise to keep you compliant and tax efficient. That is worth paying for.
If your current accountant is not delivering that value, or if you are setting up a new company and want to get the structure right from day one, speak to us. We will tell you what you need, what it costs, and why.