How Much Do Accountants Charge For Tax Returns UK?

The cost of an accountant can vary significantly based on your business’s size, the scope of your operations, and the services you need. However, it’s relatively simple to calculate the anticipated cost of your accountant once you are aware of these factors. The cost of appointing a chartered accountant in London to work for your company can vary greatly.

It depends on your company’s size, the scope of your operations, and the financial accounting you require. However, once you understand how these processes operate, it will be pretty simple to calculate the anticipated cost of employing an accountant in London, UK.

Why Your Business Needs An Accountant?

Naturally, you must first comprehend how your accountant may benefit your company and why you must acquire one before hiring. For your company, you should hire an accountant for several reasons, including:

  • By reducing the tax burden, they assist you in maximizing each allowance
  • They ensure accurate information to the Companies House and contacting hmrc paye at the appropriate time.
  • Accountants are familiar with the 17000 pages of UK tax law.
  • They look over your entire property and identify every area where you could save money.

Accounting, In Particular For Small Firms

Anything from a sole proprietorship to a limited company with up to fifty employees might be considered a small business. A variety of services are frequently delivered as a bundle for this type of business, typically including:

  • yearly accounts
  • Bookkeeping
  • tax returns for corporations
  • personal tax return for the director
  • Annual and monthly payroll returns
  • VAT quarterly returns

The bundle mentioned above is typical and is often provided for a set monthly charge. This monthly price for smaller firms can range from £50 to £200, depending on factors including turnover, the breadth of your services, and where you are in the UK. Businesses that employ more people and have a greater turnover rate should charge more.

Tax Returns and Self-Assessment

What are UK accountants’ self-assessment fees?

In the UK, accountants demand a one-time cost for an annual self-assessment tax return that usually ranges from £140 to £240 and more, depending on the complexity and breadth of your affairs. The fee may increase with your income and the number of revenue sources you have. Fees typically cover essential self-assessment services up to £250; however, more difficult tax returns would require additional work and incur a fantastic price.

What is the cost of a VAT return to an accountant?

The cost of filing VAT returns varies according to the size of the company, the projected annual revenue, and the management accountant involved. The price ranges from £0 to £100,000 in revenue. The fee is around £150 for sales between £100,000 and £200,000. Lastly, the cost is roughly £200 for a turnover between £200,000 and £400,000.

A qualified accountant should assist you in saving, at minimum, some of the charges by discovering tax savings in addition to the hours they can keep you. There are situations when your tax bill can drop so much that you ultimately save even more than the cost of hiring an accountant.

Alternatives For Paying Your Accountant

Due to the predictability it offers, many firms have grown accustomed to paying their best accountants in London every month. However, you can pay your accountant per hour or for every service provided.

Additionally, you can combine different payment methods. For example, you could pay for certain services with a fixed or monthly payment while paying hourly for more specialized assistance.

For basic accounting procedures, an accountant in the UK will cost from £25 to £35 per hour. The cost of more specialized services like tax preparation and business planning guidance is significantly higher. They demand between £125 and £150 per hour.

To Complete My Self-Assessment Tax Returns, Do I Require A Tax Accountant?

Hiring a seasoned tax accountant to assist you with your self-assessment tax consultants London is unnecessary. You don’t need to ask an expert for assistance; you can complete them independently.

However, many independent contractors need more confidence in their knowledge of the numerous costs deducted from their earnings and directly related to the business. A competent accountant can provide services. They rapidly perform your financial calculations and can also offer guidance on which costs and other factors are pertinent to your tax returns.

What Advantages Come with Hiring an Expert to Draft Tax Returns?

Stress is one of the primary considerations when determining whether to employ a tax accountant to prepare your taxes. Even though most business owners are familiar with tax regulations and can handle the mathematical requirements, HMRC guidelines can be challenging to follow and need clarification. You can fix any errors on your tax return before the filing date if you make them. Hiring an accountant relieves the anxiety and worry associated with filing your tax return since if you purposefully enter inaccurate numbers, you could face an investigation or possible legal action.

Another advantage is:

  • Time Management
  • Make sure you claim all legal expenses
  • Have faith in the precision of the calculations
  • Guidance on what to claim and the most effective method to disclose transactions

Whether You Need a One-Time Service or a Recurring Service

Basic accountancy one-time charges might range from 10 to 20 pounds per hour. It also depends on whether you are paying a set or hourly rate. The hourly rate typically adds up to a higher sum than a fixed rate.

Using a Walk-In Service or an Online Service

Online tax preparers have lower operating expenses than those who need you to see them in person. Therefore, with a lower accounting fee, online tax accountants can pass this cost benefit to their clients. Therefore, internet tax accountants typically charge 10–20% less per hour than traditional accountants.


As a company’s turnover rises, so will the price for accounting services in London, such as business accounts and VAT returns. Similarly to this, increasing staff numbers will result in rising payroll costs. Your tax return may cost more if you have rental properties.

Ask your accountant to provide a quote for their services after discussing your required accounting services. You might occasionally receive higher rates and lower rates before choosing who to hire, shop, and compare their prices. Also, remember that neither the cheapest nor the most costly option is always the best.

Kate Marlin

I am Kate Marlin, the admin of I love to write about latest news about entertainment, lifestyle, health, technology, travel, sports etc.

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