How Much Does a Small Business Accountant Cost in London?

The short answer

• ✓ Ongoing package: about £100 to £300 a month for a small business in London.
• ✓ Average monthly spend: Bark puts the London average at £240 a month, against £200 nationally.
• ✓ Self Assessment return: £150 to £400 as a one-off.
• ✓ Limited company accounts and Corporation Tax: £750 to £2,000 a year.
• ✓ What moves the price: your business structure, the state of your records, VAT, staff and how close to a deadline you ask.

There is no official or GOV.UK data on accountants' fees. The ranges here come from named public pricing guides, checked on 4 October 2026, so treat them as a guide to what's normal rather than a price list.

How much does a small business accountant cost in London by service?

The most detailed London breakdown we found is Verified Accountants' London cost guide, compiled in July 2026. Its figures exclude VAT.

For a UK-wide comparison, Unbiased (updated 23 July 2026) gives £50 to £150 a month for a sole trader and £200 to £400 a month for a limited company.

Neither source explains exactly how its ranges were worked out, which is why they disagree at the edges. Use them to spot a quote that's far out of line, not to judge one that's £50 either side.

Why do accountants in London charge more?

Mostly overheads: London rents and salaries are higher, and fees follow. Bark's pricing guide puts the London average about 20% above its national figure, at £240 a month against £200.

The gap isn't uniform. Bark's South East average is higher still, at £250. Verified Accountants says only that London firms "tend to sit toward the upper end" of its ranges.

The work itself is the same wherever the firm sits. A sole trader's return in Catford needs the same steps as one in the City, so a large gap between two quotes usually reflects the firm's costs, not extra work.

What makes an accountant's fee go up or down?

• ✓ Business structure. A limited company has to prepare and file annual accounts and a Company Tax Return, and file a confirmation statement. That's why company fees sit well above a sole trader's.
• ✓ Your records. Bank feeds in cloud software take far less time to check than a bag of receipts. Messy records are a common reason a quote goes up.
• ✓ VAT. Once you're VAT-registered, you need a return every quarter, which adds a recurring fee.
• ✓ Staff. Payroll is usually priced per employee, so it grows as you hire.
• ✓ Making Tax Digital. Sole traders and landlords with qualifying income over £50,000 have had to use it since 6 April 2026. The line drops to £30,000 from April 2027 and £20,000 from April 2028, per HMRC's eligibility guidance.
• ✓ Timing. Some firms charge more for a return requested in late January, days before the deadline.

Making Tax Digital means quarterly updates through compatible software instead of one return a year, so expect fees for affected clients to reflect the extra work.

What isn't included in an accountant's fee?

• ✓ VAT on the fee. A VAT-registered accountant adds VAT at the standard rate of 20%. Check whether a quote is "plus VAT".
• ✓ Software. Unbiased puts accounting software at £10 to £40 or more a month on top.
• ✓ Companies House fees. A company's confirmation statement costs £50 to file online, on the current Companies House fee list.
• ✓ Extras. HMRC enquiries, catch-up bookkeeping and one-off advice are often billed separately.

Are accountancy fees tax-deductible?

Mostly, yes. HMRC's own manual allows the "normal recurring" cost of preparing your business accounts and agreeing the tax on your business profits, under a long-standing practice (BIM46450).

What isn't allowed is personal tax work, such as completing the rest of your tax return or working out Capital Gains Tax. GOV.UK's expenses page puts this more bluntly. If one invoice covers both, ask your accountant how it splits.

Should you choose a fixed fee or an hourly rate?

For routine work, a fixed monthly or annual fee is usually better. You know the cost up front, and you're not put off picking up the phone.

Hourly rates suit one-off advice. Unbiased gives £50 to £150 an hour for general accounting work across the UK. Whichever you choose, get the scope in writing in a letter of engagement.

How do you compare accountant quotes in London?

• ✓ Compare like with like. List what each quote covers: accounts, tax returns, VAT, payroll, bookkeeping and HMRC letters.
• ✓ Check the VAT. A £150 quote plus VAT is £180.
• ✓ Check who supervises them. Accountants must be supervised for anti-money laundering by a professional body, such as the ACCA or ICAEW, or by HMRC.
• ✓ Ask who does the work and how quickly they reply.

The most common gap we see is a low headline fee that leaves out VAT returns or payroll, which then arrive as extras. Ask what isn't included before you compare totals.

The bottom line

In London, expect roughly £100 to £300 a month for ongoing small business support. A simple one-off return costs less, and a company with staff and VAT costs more.

The cheapest quote is only cheaper if it covers the same work. Missing a deadline costs money too: a Self Assessment return filed late starts with a £100 penalty.

How REYS Accountants can help

We're a small practice in Catford, SE6, run by Rehan Razzaq FCCA. Our Starter, Growth and Established packages cover Self Assessment, company accounts and Corporation Tax, VAT, payroll and bookkeeping.

We explain the scope and cost clearly before you commit. Freelancers and one-person companies can read about our work in Hither Green and Lee, and new companies about setting up in Greenwich and Deptford. Or ask for a quote.

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