UK contractor accountants typically charge £100–£200/month for a single-director Ltd company on a standard service plan. The headline number hides a lot — what's bundled, what's extra, when prices step up, and how the fee compares to what you actually save. This guide breaks down the full picture so you can assess value rather than just price.
Typical UK monthly fees
Indicative monthly fees for a single-director Ltd company contractor at standard service tiers (illustrative; verify current pricing with each firm):
- Online entry tier — £30–£60/month — software access with limited / paid-add-on advisor support
- Online full-service — £85–£135/month — software + unlimited advisor + year-end + Self Assessment
- Contractor specialist standard — £105–£155/month — all-inclusive contractor-only plan with FreeAgent or proprietary platform
- Contractor specialist premium — £150–£220/month — named accountant model, dedicated relationship
- Traditional firm — £125–£250/month — fixed monthly fee with named accountant
The £100–£200/month range captures most contractors at most firms. Below £80/month tends to mean software-only or partial-service. Above £250/month usually means complex circumstances (multiple companies, group structure, higher-rate tax planning).
What different tiers actually include
The label "contractor accountant" covers a wide range of service intensities. Here's what each tier typically delivers:
Entry tier (~£30–£60/month)
- Access to accounting software
- Basic bookkeeping
- VAT and payroll filings (sometimes; sometimes extra)
- Email support, but limited; phone access may be paid
- Year-end accounts and CT600 typically NOT included — extra fee
- Self Assessment NOT typically included
Suits: confident DIY contractors who want a software subscription with light backup. Often less of an accountant relationship and more of a SaaS tool with optional advisor add-ons.
Online full-service tier (~£85–£135/month)
- Bundled software with full feature access
- Unlimited bookkeeping support
- VAT registration and quarterly returns
- Monthly payroll for director
- Year-end statutory accounts
- Corporation Tax return (CT600)
- Self Assessment for director (sometimes; verify)
- Confirmation statement
- Unlimited email / phone advice
- IR35 contract review (1–2 per year typical at this tier)
Suits: most outside-IR35 contractors with single-client or small-client-portfolio Ltd companies who want everything handled but don't need a dedicated named accountant.
Contractor specialist standard (~£105–£155/month)
- Everything in the online full-service tier
- Contractor-specific workflows (dividend vouchers, contractor expense patterns, IR35-aware bookkeeping)
- FreeAgent or proprietary platform bundled
- Unlimited IR35 contract reviews typically
- Often a named accountant within a small team
Suits: Ltd contractors who want contractor-only expertise as standard, not an add-on.
Premium / named-accountant tier (~£150–£220/month)
- Everything above
- Dedicated named accountant — same person every interaction, year over year
- Annual tax-planning meeting / review
- Proactive contact (advisor flags issues before you ask)
- More intensive support for IR35 enquiries
Suits: higher-earning contractors, complex tax positions, or those who specifically value relationship continuity.
Common extras and add-ons
Items that typically cost extra beyond the headline monthly fee:
Company formation
If you're forming a Ltd at the same time as engaging the accountant: £50–£200 one-off. Some firms include it free; others charge.
Catch-up bookkeeping
Joining mid-year with disorganised records: typically £50–£200/hour to bring your books up to date. Higher if many months of un-categorised transactions need processing.
Additional employees on PAYE
Beyond a single director: typically £8–£20/month per additional employee.
Spouse / partner dividends or payroll
£10–£25/month additional for processing spouse / partner shareholder or PAYE arrangements.
Property income on Self Assessment
£50–£150 per property per year as additional Self Assessment complexity.
R&D tax credit claims
Often a percentage-of-claim fee (10–25%) rather than fixed. Significant if claims are large; firms specialise in this.
HMRC enquiry / investigation support
Usually billed hourly when needed. Some firms offer fee-protection insurance (£10–£20/month) that covers enquiry support up to a defined limit.
Voluntary liquidation
If you close the company: £500–£2,000 depending on the route (MVL with capital distribution requires a licensed insolvency practitioner; not all contractor accountants offer this in-house).
One-off advice projects
Tax planning beyond annual review: typically hourly. Can be significant for transactions like selling the business or major retirement structuring.
Hidden costs to watch for
The price comparison gotchas that catch contractors out:
Lower tier doesn't include year-end
Some online firms' headline cheap tier doesn't include year-end accounts or CT600 — that's a separate £200–£400 fee at year-end. Total annual cost at the cheap tier often equals the mid-tier when year-end is added.
Self Assessment as paid extra
Most Ltd directors need Self Assessment. If it's not in the monthly fee, expect £150–£300/year extra. Verify before signing.
Software included only at higher tier
Some firms bundle software only at the mid or top tier; lower tiers require you to subscribe separately (£15–£25/month for FreeAgent or Xero).
Confirmation statement filing fee
£13 Companies House fee is sometimes passed through, sometimes included. Small but worth knowing.
Contract length commitment
Some discounted introductory rates require a 12-month commitment. The discount is real; the lock-in means you can't leave easily if the service disappoints.
Tier-step pricing
Revenue thresholds that move you to a higher tier. A firm advertising £85/month might charge £125/month above £100k turnover. Confirm the tier ladder before signing.
VAT scheme transitions
Some firms charge extra to move you between VAT schemes (e.g. standard to flat-rate or vice versa). Modest fee but unexpected.
Value-for-money framework
A contractor accountant at £150/month is £1,800/year. For the fee to be worth it the firm needs to deliver at least that much in measurable value. The four mechanisms:
1. Tax savings from structuring
A well-set salary / dividend split for a £80k profit Ltd typically saves £2,000–£4,000/year over inefficient alternatives (all-salary, or salary triggering higher-rate NI unnecessarily). For higher-profit Ltds the saving scales. At the small end (sub-£40k profit), the structuring delta is smaller and the value-for-money calc is tighter.
2. Time savings
20–40 hours/year not spent on bookkeeping, VAT, payroll filings and year-end. Value that at your day rate. At £400+/day, 20 hours back is £1,000+ of opportunity cost recovered.
3. Risk reduction
HMRC penalties for missed deadlines: £100–£500+ per incident, sometimes much more. Mis-filed VAT or incorrect CT600s can cascade. A specialist who never misses these has measurable risk-reduction value, particularly for first-year contractors who don't yet know the deadline rhythm. See our contractor tax deadlines calendar.
4. IR35 expertise
For inside-IR35 contractors or those near the line, structuring advice can be worth thousands in retained income — whether to take an engagement, how to evidence outside status, when to push back on client assessments.
For most UK Ltd contractors earning £50k+ profit, items 1, 2 and 4 alone justify the £100–£200/month fee comfortably. Below £30k profit, the calculation tightens — DIY with software may genuinely be more efficient.
Cheaper alternatives
Generalist local accountant
A traditional accountant covering all small businesses. Often £60–£120/month for a Ltd. The trade-off is contractor specialism — many generalists don't engage with IR35 or contractor-specific structuring. For straightforward outside-IR35 contractors with stable affairs this can work; verify competency first.
DIY with software + one-off year-end
FreeAgent (free with Mettle / NatWest, otherwise £19/month) + a one-off £400–£700 year-end fee from a small accounting firm. Annual total: £400–£930. Significantly cheaper than full-service, but you handle bookkeeping, VAT, payroll and Self Assessment yourself. See contractor accountant vs DIY.
Full DIY
FreeAgent + DIY year-end + DIY Self Assessment. Software cost only — £0–£228/year. Highest time cost; highest risk of errors. Suits experienced contractors with simple positions and tolerance for HMRC paperwork.
Umbrella company
For inside-IR35 contracts: an umbrella employs you and processes income through PAYE. Cost is a margin (£15–£30/week) — significantly less than a Ltd + accountant — but lower net take-home than outside-IR35 Ltd. Comparable when factored against zero accounting admin. See Inside vs Outside IR35.
When premium pricing is justified
The £150–£250/month tier earns its premium for:
- Higher-rate contractors where the structuring planning has more leverage
- Multi-engagement contractors with mixed inside / outside IR35 exposure
- Contractors with property, investments or other complex income where Self Assessment is non-trivial
- Contractors approaching corporate exit — selling the business, MVL, or major restructuring
- Contractors with HMRC enquiry history who need proactive monitoring
- Contractors who genuinely value a named-accountant relationship over a transactional service
For straightforward £40–£80k profit single-client outside-IR35 Ltds, the standard £100–£140/month tier usually delivers everything needed. Premium pricing for simple cases is rarely worth the delta.
Realistic annual cost scenarios
Putting the pieces together for realistic UK Ltd contractor profiles:
Scenario 1 — First-year Ltd contractor, £60k profit, outside IR35, single client
- Monthly fee: £125 × 12 = £1,500
- Self Assessment: included
- Company formation: £100 one-off
- Software: bundled
- Total year 1: £1,600
Scenario 2 — Year-2 contractor, £85k profit, outside IR35, FreeAgent already in place
- Monthly fee: £135 × 12 = £1,620
- Self Assessment: included
- Software: continued, free via Mettle
- Total: £1,620
Scenario 3 — Mixed inside / outside contractor, £100k profit
- Monthly fee: £150 × 12 = £1,800 (higher tier for IR35 complexity)
- Additional IR35 contract reviews: included
- Self Assessment: included
- Total: £1,800
Scenario 4 — DIY year-round with year-end accountant
- FreeAgent: free via Mettle
- Year-end accountant fee: £600
- Self Assessment (separate or included with year-end): £150
- Total: £750
Scenario 5 — Premium named-accountant contractor, £120k+ profit
- Monthly fee: £185 × 12 = £2,220
- Annual tax planning meeting: included
- Self Assessment: included
- Spouse dividend administration: £15/month × 12 = £180
- Total: £2,400
The £750–£2,400 range captures the practical span for UK contractors. The right point on it depends on the value of structuring, time saved, and risk reduction in your specific case.
Negotiating the monthly fee
Some practical tips that contractors use to optimise the cost:
Annual prepay discount
Many firms offer a 5–10% discount for annual prepayment. Worth a quick ask. Caveat: only do this if you're confident the firm will deliver — refunds for partial year are sometimes pro-rated unfavourably.
Switch-in offers
Firms compete for switchers. It's not unusual for a switch to come with the first 1–3 months free or a discount in the first year. Ask explicitly during the sales conversation.
Multi-year client discount
For long-term clients, some firms offer loyalty discounts at renewal. Less common at headline tier, more common at higher tiers.
Bundled offerings
If you need IR35 insurance, fee-protection insurance, or pension administration alongside accounting, bundle discounts may be available within the group's own product range (less so when you mix providers).
Tier-down approach
If a firm has tiered plans, start at the level that fits your current needs rather than the recommended "premium" tier. Many contractors do fine on the standard plan and only need premium for genuinely complex cases.
Don't optimise for monthly fee alone, though. A £30/month discount that comes with reduced IR35 reviews or slower year-end turnaround is often false economy.
£100–£200/month for a single-director Ltd at standard service tiers. The mid-point — around £125–£150/month — is the most common pricing point.
Yes — accountancy fees are an allowable business expense for UK Ltd companies, reducing your Corporation Tax bill at 19–25% depending on profit level. See our allowable expenses guide.
Specialism. Contractor-specific firms invest in IR35 expertise, contractor-tuned software, and contractor-aware tax planning. The premium pays for value not present in generalist firms.
Yes — entry-tier online plans can start at £30–£60/month, but verify what's actually included (often software only, with year-end as a separate fee). Local generalist accountants sometimes price below £100/month for Ltd contractors.
For confident DIY contractors who want the software with light backup, yes. For most contractors wanting everything handled, the cheap tier becomes false economy once year-end and Self Assessment extras are added.
Quote 2–3 firms, compare like-for-like inclusions (not just headline price), ask about discount for annual prepay if applicable, and verify there's no setup or tied-in commitment hiding.
Most firms have plans suitable for new Ltds at standard pricing. A few offer reduced introductory rates for the first 3–6 months. Confirm the post-introductory rate before signing.
Most firms re-price annually with inflation. Increases of 2–6% per year are typical. Tier transitions (e.g. crossing a revenue threshold that moves you to a higher plan) can produce larger jumps. Review at renewal.
Editorial pricing guidance — indicative ranges based on standard UK contractor accountant plans as of June 2026. Verify current pricing directly with each firm.