It's one of the first questions anyone asks before hiring an accountant, and one of the hardest to get a straight answer to. Most firms don't publish their prices, which leaves you comparing quotes with no real sense of what's reasonable. Here's a plain English breakdown of what tends to drive the cost, and what you can realistically expect to pay for an accountant in Bath, Warminster and Midsomer Norton.
Why There's No Single Answer
Accountancy fees depend on what you actually need, not a flat rate that applies to everyone. A sole trader with one income source and tidy records costs far less to look after than a limited company with several directors, VAT registration, and payroll to run. The quality of your existing bookkeeping matters too. Messy or incomplete records take longer to work with, and that time gets reflected in the fee.
One-Off Fees vs Monthly Packages
Broadly, accountants charge in one of two ways. A one-off fee covers a single piece of work, such as a Self Assessment tax return, and you're typically looking at somewhere between £150 and £500 depending on complexity. A monthly retainer instead spreads the cost across the year and usually includes ongoing support such as bookkeeping queries, VAT, and access to advice whenever you need it, rather than just once a year at filing time.
For sole traders, a monthly package often falls somewhere in the £50 to £150 range. For limited companies, where there's Corporation Tax, Companies House filings and often payroll to manage, monthly fees more commonly sit between £100 and £300, rising further for larger or more complex businesses.
What Pushes the Price Up
A few things reliably increase what you'll pay. VAT registration adds quarterly returns to the workload. Payroll for even one or two employees adds ongoing administration. Multiple income sources, rental properties, or capital gains all add complexity to a personal tax return. And with Making Tax Digital extending quarterly digital reporting to more people, anyone affected should expect this to factor into their fee going forward.
Why the Cheapest Quote Isn't Always the Best One
It's worth being cautious of a quote that looks unusually low, particularly for a VAT-registered limited company. It often means a narrower scope of work than you'd expect, with extra charges appearing later for anything outside it, or simply less time spent understanding your business. A good chartered accountant should save you more than they cost through tax planning and avoided penalties, so it's worth weighing the whole package rather than the headline figure alone.
Getting a Fee That Fits Your Business
At PG Owen, we'd rather understand your situation properly than quote a number before we know what you need. That's why every new client starts with a free, no-obligation consultation across Bath, Warminster and Midsomer Norton, so you get a fee that reflects your business rather than a one-size-fits-all price list.
Frequently Asked Questions
Is it cheaper to do my own tax return?
It can be, if your affairs are simple. But a good accountant often identifies allowances or reliefs you'd have missed, and the time saved is worth something too. For anything beyond a very straightforward return, the fee is usually worth it.
Do accountants charge VAT on their fees?
Most accountancy firms are VAT registered, so yes, VAT is usually added on top of the quoted fee. It's worth checking whether a quote you've been given is inclusive or exclusive of VAT before comparing it with another firm.
Will my fee change once I'm a client?
It can, but it should only change if your circumstances do, for example if you register for VAT, take on employees, or your turnover grows significantly. A transparent accountant will explain why before any increase, not after.
What's included in a typical monthly fee?
This varies by firm, so always ask. At a minimum, it should cover your annual accounts and tax return. Fuller packages add bookkeeping support, VAT returns, payroll, and ongoing access to advice throughout the year rather than just at deadline time.
Get a Fee That Reflects Your Business
If you'd like an honest quote based on what you actually need, PG Owen offers a free, no-obligation consultation across Bath, Warminster and Midsomer Norton. Get in touch and let's talk through your business.