How much does a tax accountant cost in the UK?
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£90 - £400
low
£90
median
£150
high
£400
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Written by Cielo B.
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Key Facts
Tax accountant costs in the UK typically range from £90 to £180 for basic tax returns, while more complex services, such as company tax or cross-border tax support, can cost £250 to £400+
Accountants who charge for tax services in the UK should be registered with HMRC, while Chartered Accountants may also hold licences from bodies such as ICAEW or ACCA.
You can save money by keeping digital records organised, choosing fixed-fee packages, booking outside peak tax season, and preparing your paperwork early.
The intricate nature of UK tax laws can make it challenging for many taxpayers to file their tax returns. A single oversight can result in overpaying taxes or facing penalties for inaccuracies. This is why hiring a professional tax accountant matters, as it helps ensure efficiency and compliance.
This guide covers how much a tax accountant costs in the UK, including a breakdown of typical fees and the factors that affect the final price. It also includes tips on saving money when hiring a professional accountant.
What are the average tax accountant costs in the UK?
Tax accountant fees can vary widely by location. Accounting firms in a major city like London often charge more due to higher overheads and greater demand. On the other hand, accountants outside major cities offer more cost-effective pricing.
Below is a breakdown of the average tax accountant costs across the UK:
City |
Average Accountant Cost for Taxes |
|---|---|
£120 – £180 |
|
£100 – £150 |
|
£100 – £150 |
|
£95 – £140 |
|
Liverpool |
£95 – £140 |
£105 – £160 |
|
£105 – £160 |
|
£95 – £140 |
|
Southampton |
£100 – £150 |
£95 – £140 |
|
Derby |
£90 – £130 |
£90 – £130 |
*Prices shown are typical total costs per job based on recent Airtasker data. Actual costs may vary.
What factors affect tax accountant prices?
Hiring a tax accountant involves several factors that could affect the final price:
Personal tax paperwork beside pound notes (Source: iStock)Service type and work scope
How much do accountants charge for tax returns? Basic services like these would cost around £90 to £140. This often involves a straightforward return and standard deductions.
Meanwhile, for individuals with businesses, whether it’s freelance work or a company, accountants would often charge more. This is because these tax returns are more complex, with additional reporting requirements and a higher volume of transactions to track.
Finally, for cross-border tax accountant services, costs are usually the highest because accountants must consider the tax laws of two countries. In addition, there are various international compliance forms to complete to meet legal and reporting standards.
Here’s a table showing the average tax accountant cost for different service types:
Service Type |
Average Tax Accountant Price |
|---|---|
Basic individual tax return |
£90 – £140 |
Sole trader / freelancer tax return |
£120 – £250 |
Corporate or limited corporate accounts & tax |
£250 – £400 |
Cross-border / international tax services |
£300 – £400+ |
Tax planning or specialist advice |
£200 – £400 |
Financial situation complexity
Accountants also charge based on how much time a job takes and the specialised knowledge required.
For example, if you work for one employer and earn a set salary, you fall into the single-income category. You only need a standard tax return, which may cost around £90 to £120. However, if you have several income sources from running a small side business, your tax affairs become more complex, requiring additional financial planning and analysis, which can make tax accountant services more expensive.
How about if you own a house or hold shares in the stock market? In these situations, costs rise because accountants must calculate capital gains tax, manage property-related expenses, and handle depreciation schedules.
Meanwhile, if you manage a global business, specialised expertise becomes essential. These complex international tax matters can exceed £400, as accountants ensure compliance with international law and help you prevent double taxation.
To help clarify these differences in pricing, the following table shows how the cost for a tax accountant can vary:
Financial Situation |
Impact on Tax Account Cost |
|---|---|
Single income, minimal deductions |
£90 – £120 |
Multiple income streams |
£100 – £150 |
Property income or investments |
£120 – £250 |
Complex or international tax affairs |
£250 – £400+ |
Record-keeping and document quality
Tax document folder label among office files (Source: iStock)Some accountants charge by the hour, so it’s best to provide them with neatly organised, complete records. This allows them to focus on strategic advice instead of sorting financial documents, reducing your overall service time.
But we don’t always have time to organise everything. There may be missing receipts or bank statements, or sometimes, records get very messy or incomplete. In those cases, you’ll need a highly qualified senior professional for financial reporting. This usually means extra charges, which can add more than £300 to the total cost.
Record Quality |
Impact on Tax Account Cost |
|---|---|
Well-organised, complete records |
£90 – £120 |
Minor gaps or missing documents |
£100 – £160 |
Disorganised or incomplete records |
£150 – £300+ |
Business size and structure
If you’re managing a business, you’ll need the help of a tax accountant to ‘reconcile’ or categorise and verify your transactions. These extra services come at an added cost, but as a general rule, small-business tax accountant costs are lower than those for larger firms.
However, as your business grows, you’ll usually hire more employees. This can lead to additional accounting work, as accountants must also factor in employee payroll when calculating taxes.
Check out this table to see how much the additional tax accounting fees are for each business structure:
Business Structure |
Impact on Tax Account Cost |
|---|---|
Sole trader |
£100 – £200 |
Partnership |
£150 – £300 |
Company or trust |
£250 – £400+ |
Accountant experience and specialisation
Naturally, the more experience an accountant has, the higher their service costs are. It’s like in any profession, you pay for the years of experience the accountant has.
For example, junior accountants and bookkeepers handling routine data entry or file organisation generally charge lower fees. On the other hand, senior professionals like an Associate Chartered Accountant (ACA) charge higher rates. They typically handle complex tax issues, conduct sophisticated tax planning, and provide business advisory services.
Additionally, accountants with niche expertise, like UK forensic accountants, also drive up tax accountant fees. This is because they typically focus on analysing financial records for court cases, tracing hidden assets, and detecting fraud, embezzlement, and disputes.
Seasonal demand and urgency
Seasonality plays a significant role in the fluctuations in accounting tax service costs in the UK. For example, demand peaks around 31 January, the fixed deadline set by His Majesty’s Revenue and Customs (HMRC) for online self-assessment tax returns and payments.
The same applies to urgent or priority filings, which require officially submitting your tax return to the government. This often happens if you leave your taxes to the very last minute and need them done immediately. You can ask a tax accountant to skip the queue, but they’ll charge you extra fees for rush services.
What are some ways to save on tax accountant rates?
There are a few ways to help you lower accounting tax services cost while still getting the expert advice you need:
Keep records organised and digital
Person reviewing documents on a digital tablet (Source: iStock)Messy paperwork makes your accountant spend more time sorting receipts, entering data, and fixing errors, raising your overall cost. UK-compliant software such as Xero and QuickBooks helps digitally organise your records so you can provide clear, categorised information to your accountant and reduce fees, especially if charged hourly.
Choose fixed-fee packages
Hourly rates can be harder to predict, especially if small questions, follow-up emails, or quick reviews are billed separately. By contrast, fixed-fee packages usually include bundled services covering Value Added Tax (VAT) return, tax preparation, and basic advice, at a clear monthly or annual price. This makes budgeting easier and helps you avoid paying for services you don’t really need.
Time your consultations wisely
Timing can affect your costs. Around VAT Return and Self Assessment deadlines, accountants are busiest, leading to higher or rush fees.
When possible, book consultations during quieter months, usually spring (February-May) and summer (June-August), when demand drops. Also, submit paperwork early to give your accountant time to review records and plan deductions properly.
Improve your financial literacy
Consider signing up for free HMRC webinars, reading resources from accounting bodies, and taking short courses on basic bookkeeping or tax to help you better understand your obligations and common deductions.
If you already know which expenses apply to your work or industry, you can prepare cleaner information for your accountant, reducing the time they spend reviewing it and lowering costs.
What should you look for in a professional tax accountant?
Hiring a personal tax accountant can involve considerable costs, so you’ll want to find the right professional to get your money’s worth. Here are some tips to help you choose:
Proper qualifications and registration
When choosing a tax accountant in the UK, start with their qualifications. Ideally, they should be registered with the HMRC, so it’s worth checking their status before you hire them.
It also helps to look for Chartered Accountants (CA) who hold qualifications from the Institute of Chartered Accountants in England and Wales (ICAEW) or the Association of Chartered Certified Accountants (ACCA), as these professionals have advanced training and must adhere to strict ethical standards.
Relevant industry experience
Someone who mainly works with large companies may not be the right fit for a freelancer, sole trader, expat, or small business owner. This is why finding an accountant who understands your type of work and financial situation is also important. They should be able to demonstrate experience with your industry, business structure, and tax complexity.
Technology and security
Technology matters as well. A professional accountant should be comfortable using HMRC-compatible accounting software to manage records efficiently. Because tax work involves sensitive financial information, they should also have secure systems for storing and sharing documents, such as client portals and e-signatures.
Get ready for tax season with Airtasker
Desk setup with calculator, laptop, and papers (Source: iStock)A simple mistake in submitting your tax return can lead to costly errors. Instead of handling complex forms on your own, it’s best to hire a professional.
Airtasker helps you connect with local accountants for tax-time support, from organising records to preparing documents for review. Simply post a task outlining your tax needs and desired budget, then wait for Taskers to send you quotes.
Avoid the stress of last-minute tax lodgement and find the right professional with Airtasker.
Learn more about our contributors
Written by Cielo B.
Staff Writer
Cielo is an experienced content writer who has explored various industries throughout her career. Her expertise, founded on a degree in journalism, includes writing about automotive and home maintenance. Cielo also covers topics like dressmaking, tailoring, and photography since she is a passionate cosplayer who enjoys dressing up as her beloved anime characters.
FAQs
It depends on your knowledge and how much time you can set aside for filing taxes. The HMRC has a portal that allows you to easily complete your self-assessment tax return, and you can use this if you’re knowledgeable enough to file.
However, if you do not have the time or need professional support, hiring a tax accountant can save you time, help ensure accuracy, and potentially identify deductions you might otherwise miss.
Tax accountants and bookkeepers have different roles: Bookkeepers can help track your income and expenses to maintain accurate accounting records, but they can’t legally lodge your tax returns and provide strategic advice, unlike tax accountants. Moreover, tax accountants hold advanced qualifications and are legally registered.
It depends on how organised your financial records are. Well-organised digital records allow for completion in under two hours. In contrast, messy or uncategorized records typically require around four hours due to additional manual administrative work.
To complete your tax return, you will usually need to give your tax accountant a few key documents. These help them confirm your identity, review your income, and claim any eligible deductions correctly:
Tax details: Your Unique Taxpayer Reference (UTR), which is a 10-digit tax ID issued by HMRC, your National Insurance number, and your Government Gateway User ID if you are filing online yourself.
Income records: Documents showing the income you earned during the tax year, such as your P60, P11D, bank interest certificates, dividend vouchers, and records of rental or self-employment income.
Expense and deduction records: Organised receipts and bank statements, so your accountant can review and categorise allowable business expenses correctly.
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