How Much Does a Contractor Accountant Cost?

Last reviewed 2 November 2026 · Part of the contractor accountant cluster.

What a contractor accountant costs depends on the service level, what is bundled into the monthly fee and what is charged as an extra. Firms publish their own prices and change them, so this guide doesn't quote typical fee ranges. Instead it shows how fees are structured, what each service level usually includes, the extras and hidden costs to ask about, and how to work out your own total annual cost from the quotes you get.

How contractor accountant fees are structured

Most UK contractor accountants charge a fixed monthly fee for a single-director limited company, with the price set by the service level you choose. You will usually see these broad models:

Prices rise with the amount of work the firm does for you and with complexity: several income streams, property income, more than one company, or IR35 work. Two quotes with the same monthly fee can cover very different work, so compare what is included before you compare price.

What different service levels include

The label "contractor accountant" covers a wide range of service. This is what each level usually delivers; always confirm against the firm's own plan description.

Entry plan

• Access to accounting software
• Basic bookkeeping support
• VAT and payroll filings (sometimes included, sometimes extra)
• Limited email support; phone access may cost extra
• Year-end accounts and the CT600 often NOT included
• Self Assessment often NOT included

Suits: confident DIY contractors who want software with light backup. It is often closer to a software subscription with optional adviser add-ons than an accountant relationship.

Online full-service plan

• Bundled software with full feature access
• Bookkeeping support
• VAT registration and quarterly returns
• Monthly payroll for the director
• Year-end statutory accounts
• Corporation Tax return (CT600)
• Self Assessment for the director (sometimes; check)
• Confirmation statement
• Email and phone advice
• IR35 contract reviews (check how many are included)

Suits: most outside-IR35 contractors with one client or a few, who want everything handled but don't need a dedicated named accountant.

Contractor specialist plan

• Everything in the full-service plan
• Contractor-specific workflows (dividend paperwork, contractor expenses, IR35-aware bookkeeping)
• FreeAgent or the firm's own platform bundled
• IR35 contract reviews (check the allowance)
• Often a named accountant within a small team

Suits: limited company contractors who want contractor expertise as standard rather than as an add-on.

Premium or named-accountant plan

• Everything above
• A dedicated named accountant, the same person year after year
• An annual tax-planning review
• Proactive contact: the adviser flags issues before you ask
• More support with IR35 or HMRC enquiries

Suits: higher earners, complex tax positions, or contractors who value continuity.

Common extras and add-ons

Items that often cost extra on top of the monthly fee. Ask each firm for its price for any that apply to you.

Company formation

Some firms include forming your company; others charge. If you form the company yourself, the official Companies House fee for an online incorporation is £100 (since 1 February 2026, Companies House).

Catch-up bookkeeping

If you join mid-year with disorganised records, expect a separate charge, often hourly, to bring the books up to date. The more months of uncategorised transactions, the higher it will be.

Additional employees on PAYE

Payroll for anyone beyond the director is usually charged per employee.

Spouse or partner dividends or payroll

Some firms charge extra to run a spouse or partner's shareholding or payroll.

Property income on Self Assessment

Rental income makes Self Assessment more complex, and many firms charge extra per property.

R&D tax credit claims

Often charged as a percentage of the claim rather than a fixed fee. Ask for the basis in writing.

HMRC enquiry support

Usually billed by the hour when needed. Some firms offer fee-protection insurance that covers enquiry costs up to a set limit; check the limit and the exclusions.

Closing the company

Closing a company has its own cost. A members' voluntary liquidation (MVL) needs a licensed insolvency practitioner, and not every contractor accountant offers this in-house.

One-off advice projects

Tax planning beyond the annual review is usually charged by the hour or as a fixed project fee, for example on selling the business or restructuring for retirement.

Hidden costs to watch for

The gotchas that catch contractors out when they compare headline prices:

Lower plan doesn't include year-end

Some firms' cheapest plan doesn't include year-end accounts or the CT600; these are charged separately. Add that charge before you compare annual costs.

Self Assessment as a paid extra

Most limited company directors need to file Self Assessment. If it isn't in the monthly fee, ask what it costs. Verify before signing.

Software only on higher plans

Some firms bundle software only on mid or top plans; on lower plans you subscribe separately. Check the software provider's current price.

Confirmation statement filing fee

The Companies House confirmation statement fee (£50 online since 1 February 2026, Companies House) is sometimes passed through to you and sometimes included.

Contract length commitment

Some introductory discounts require a 12-month commitment, which makes it harder to leave if the service disappoints.

Turnover-based price steps

Some firms move you to a higher price once your turnover passes a threshold. Ask for the full price ladder before signing.

VAT scheme changes

Some firms charge to move you between VAT schemes, for example from standard accounting to the Flat Rate Scheme.

Value-for-money framework

Multiply the monthly fee you are quoted by 12. For the fee to be worth it, the firm needs to deliver at least that much value. There are four ways it can:

1. Tax savings from structuring

A well-chosen salary and dividend split can reduce your total tax compared with less efficient set-ups. The saving depends on your profit and personal circumstances: model it with our limited company take-home calculator rather than relying on a rule of thumb.

2. Time savings

Estimate the hours a year you would spend on bookkeeping, VAT, payroll filings and year-end, and value them at your own rate: hours saved × your hourly rate. Compare that with the annual fee.

3. Risk reduction

Missed deadlines cost money. For example, a Self Assessment return filed up to three months late gets a £100 penalty, with more after that (GOV.UK). Late company filings and VAT returns have their own penalties. A firm that never misses a deadline is worth most to first-year contractors who don't yet know the calendar. See our contractor tax deadlines calendar.

4. IR35 expertise

For contractors near the IR35 line, good advice can be worth a lot: whether to take an engagement, how to evidence outside status, and when to challenge a client's assessment.

The higher your profit and the more complex your position, the more likely the fee pays for itself. With low profit and a simple position, DIY with software may be the better deal.

Cheaper alternatives

Generalist local accountant

A traditional accountant who works with all kinds of small business may charge less than a contractor specialist. The trade-off is specialism: many generalists don't deal with IR35 or contractor-specific planning. This can work for straightforward outside-IR35 contractors; check their experience first.

DIY with software and a one-off year-end

You do the bookkeeping, VAT and payroll in accounting software and pay a small firm a one-off fee for the year-end accounts and CT600. Some business bank accounts include accounting software at no extra cost; otherwise check the software's current price. See contractor accountant vs DIY.

Full DIY

Software plus your own year-end and Self Assessment. The cost is the software subscription only, but it takes the most time and carries the highest risk of errors. Suits experienced contractors with simple positions.

Umbrella company

For inside-IR35 contracts, an umbrella company employs you and pays you through PAYE, taking a margin from each payment. There's no company to run, but take-home pay is usually lower than outside IR35 through a limited company. Compare umbrella margins in writing. See Inside vs Outside IR35.

When premium service is worth it

A premium or named-accountant plan earns its higher price for:

• Higher-earning contractors, where tax planning has more effect
• Contractors with several engagements and mixed inside and outside IR35 work
• Contractors with property, investments or other complex income that makes Self Assessment harder
• Contractors planning an exit: selling the business, an MVL or a restructure
• Contractors with a history of HMRC enquiries who need proactive monitoring
• Contractors who value a named-accountant relationship over a transactional service

For a straightforward single-client outside-IR35 company, a standard full-service plan usually covers everything. Paying for premium service on a simple case is rarely worth it.

Work out your annual cost

Use the quotes you get to build a like-for-like annual figure for each firm:

1. Monthly fee × 12, at the price you'll pay after any introductory offer ends.
2. Plus one-off costs in year one: company formation (the Companies House fee is £100 online if you do it yourself), catch-up bookkeeping, switching fees.
3. Plus extras not in the plan: year-end accounts and CT600, Self Assessment, software, extra payroll, spouse dividends, property income.
4. Plus pass-through fees: for example the £50 confirmation statement fee, if the firm doesn't include it.
5. Compare the totals, then weigh them against the value framework above.

Some common profiles and what to check:

• First-year contractor, outside IR35, one client: check whether formation, Self Assessment and software are included, and the price after any introductory offer.
• Year-two contractor with software already set up: check whether you can keep your existing software, and any switching or catch-up charges.
• Mixed inside and outside IR35 work: check how many IR35 contract reviews are included and the charge for more.
• DIY with a year-end accountant: get a fixed quote for year-end accounts, CT600 and Self Assessment.
• Higher earner wanting a named accountant: check what the annual planning review covers and the cost of extras such as spouse dividends.

Negotiating the fee

Practical ways contractors reduce the cost:

Annual prepayment

Some firms offer a discount for paying a year upfront. Only do this if you're confident in the firm, and check how refunds work if you leave mid-year.

Switching offers

Firms compete for switchers and sometimes offer free or discounted months. Ask during the sales conversation, and confirm the full price afterwards.

Loyalty pricing

Some firms offer better terms to long-standing clients at renewal. It's worth asking.

Bundles

If you also need IR35 insurance, fee-protection insurance or pension administration, a firm may discount a bundle of its own products.

Start on the plan you need

Choose the plan that fits your needs now rather than the recommended premium plan. Many contractors manage well on a standard plan.

Don't choose on monthly fee alone, though. A cheaper plan with fewer IR35 reviews or slower year-end turnaround can cost more in the end.

Editorial guidance on how contractor accountant fees are structured. No accountancy fee ranges are quoted; official Companies House and HMRC figures are sourced inline. Get current prices directly from each firm.