How much should a contractor accountant cost per month?

There is no single figure to quote. Fees move with the scope of the work, whether your engagements are inside or outside IR35, whether VAT and payroll are running, and whether software sits inside the fee. The useful comparison is scope against scope: send two firms the same written list of items you need covered, then compare the totals including anything either of them charges as an extra.

What should a monthly contractor accountancy package normally include?

For a limited company contractor, a full package normally covers statutory year-end accounts, the CT600 corporation tax return, Companies House filings and the confirmation statement, RTI payroll for the director's salary, dividend paperwork, VAT returns where you are registered, and the director's self assessment return. Registered office provision, bookkeeping software and status work are the items most likely to sit outside the fee, so confirm each one in writing.

Is a fixed monthly fee better than hourly billing?

A fixed monthly fee suits recurring compliance work because the volume is predictable and you can budget for it. Hourly or project pricing usually fits one-off events better: incorporation, a company purchase, an HMRC enquiry, or a members' voluntary liquidation. Many contractors end up with both, so ask which events fall outside the monthly fee and how those are quoted before you sign anything.

Does a contractor accountant handle MTD for Income Tax?

Only where you hold income that brings you into it, which for most limited company contractors means no. The regime reaches sole trader and landlord income, and the qualifying income entry point is £50,000 from 6 April 2026, then £30,000 a year later and £20,000 the year after that. Salary and dividends from a personal service company are outside it, because those profits are filed under corporation tax. Where you do have freelance or rental income alongside the company, ask whether the quarterly updates and the final declaration sit inside the monthly fee or are billed on top.

Should IR35 status work sit inside the fee?

Ask, because practice varies. Some firms include a general view on how an engagement looks and help you gather working practices evidence, while a formal contract review or a challenge to a Status Determination Statement is quoted separately. Neither approach is wrong, but a fee that includes no status support at all is not comparable with one that does. Under Chapter 10 the client issues the determination and you have a disagreement route if it looks wrong.

Are accountancy fees a deductible company expense?

Fees incurred wholly and exclusively for the purposes of the company's trade are deductible against corporation tax, so the after-tax cost of a fee is lower than the headline amount. Personal work, such as a self assessment return covering income unconnected with the company, is not a company expense and should be identified separately on the invoice. Ask the firm how it splits company items from personal ones.

Contractor Accounting Basics

What Should a Contractor Accountant Fee Cover in 2026/27?

Published 12 June 2026Updated 27 September 2026Contractor Tax Accountants Editorial Team5 min read

Judge a contractor accountant fee by the scope behind it, not by the monthly figure. Decide which package shape fits how you work, then confirm in writing whether year-end accounts, payroll, VAT, your self assessment, status support and software sit inside the fee or outside it. Scope gaps, not headline numbers, decide the real cost.

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Figures checked against primary sources (HMRC, legislation.gov.uk, HMRC IR35 guidance) in 27 September 2026.

Key takeaways

Fee levels move with scope, so two quotes are only comparable once you hold a written list of what each one includes and excludes.
The four items most often left outside a headline fee are the director's self assessment return, VAT returns, software licences and any IR35 status work.
Match the package shape to how you work: a settled outside-IR35 company, a year of changing engagements, or sole trader income that falls inside Making Tax Digital for Income Tax from April 2026.
A fixed monthly fee suits recurring compliance work, while hourly or project pricing suits one-off events such as incorporation, an enquiry or closing the company.
Choose a firm that guides while you decide, because a packaged arrangement that runs your company's finances for you raises Managed Service Company risk under Chapter 9 of ITEPA 2003.

Two professionals analyzing financial documents with a calculator. — Photo: Artem Podrez / Pexels

Decide the scope first and the fee second. A contractor accountant fee only means something next to the list of work it covers, so the real decision is which package shape fits how you work, then whether the quote in front of you carries that shape without extras surfacing later. Two quotes that look far apart usually differ on four things: the director's self assessment return, VAT returns, software licences and IR35 status work.

No single monthly figure answers the question, because the obligations behind a fee differ from one contractor to the next. A company registered for VAT once turnover passes £90,000, running RTI payroll and filing a CT600, is buying a different year of work from a company with one client and no VAT. Price the list, then read the quote against it.

Which package shape fits your situation?

Start from how you work, because that sets the obligations a fee has to carry.

Package shape	Who it fits	Normally inside the fee	Usually quoted separately
Compliance only	A settled outside-IR35 company, one client, no VAT, comfortable keeping your own records	Year-end accounts, CT600, Companies House filings, director payroll	Self assessment, VAT, software, any status work
Full limited company package	Most contractors running payroll, dividends and VAT through a personal service company	All of the above plus VAT returns, dividend paperwork and the director's self assessment	Contract reviews, company closure, enquiry handling
Package with status support	Contractors whose engagements change, or who face a determination they doubt	Compliance plus a view on how an engagement looks and help assembling working practices evidence	Formal contract review, tribunal-standard opinions
Sole trader or mixed income	Freelance or rental income inside Making Tax Digital for Income Tax	Digital records, quarterly updates and the final declaration	Company work where you also run a limited company

If you are earlier in the decision and still comparing a contractor specialist with a general practice firm, how to choose a contractor accountant covers the selection criteria. This page assumes you have a shortlist and are now reading quotes.

What should the fee cover for 2026/27?

It should buy every filing your structure creates in the year, delivered on time, with someone accountable for each one. For a personal service company that means statutory accounts and the corporation tax return, the confirmation statement and Companies House filings, RTI payroll each time the director is paid, dividend vouchers and board minutes that exist before the money moves, VAT returns where you are registered, and the director's self assessment return covering salary and dividends.

Two 2026/27 items are worth naming in the quote. Dividend rates rose on 6 April 2026 to 10.75% ordinary and 35.75% upper under Finance Act 2026 s.4, so any salary and dividend planning has to run on current rates rather than last year's, which the director salary and dividend split guide works through. Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income above £50,000, and it does not apply to company profits or to a director's dividends, so a contractor working through a company is generally outside it. Check whether a quote assumes otherwise, because whether you need an accountant for MTD turns entirely on which income you have.

Status handling is the third item. Under Chapter 10 of ITEPA 2003 a medium or large client issues the Status Determination Statement and the fee-payer operates PAYE, while under Chapter 8 a small or overseas client leaves the assessment with your company. Ask what happens when a determination arrives that you think is wrong, and whether that work sits inside the fee.

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Fixed fee or hourly, and what changes between them?

A fixed monthly fee suits recurring work with predictable volume, and it is the normal shape for limited company compliance. Hourly or project pricing suits events: incorporation, a mid-year switch, an HMRC enquiry, a share reorganisation, or closing the company down. The trade-off is not really price, it is certainty. A fixed fee removes surprises on routine work and usually carves the events out; an hourly arrangement does the reverse.

Where a fixed fee goes wrong is in the carve-outs nobody reads. Ask which specific events fall outside it, how those are quoted, and whether the monthly figure changes if you register for VAT, take on a second employee, or move from one engagement to several.

Which questions should you ask before signing?

Six questions separate comparable quotes from ones that only look comparable.

Is the director's self assessment return inside the fee, and does that cover income unconnected with the company?
Are VAT registration and quarterly returns included, and is the Flat Rate Scheme decision modelled rather than assumed?
Is bookkeeping software licensed by the firm or bought by you, and who holds the data if you leave?
What happens when an engagement's status is in question, and what is quoted separately?
Which events sit outside the monthly fee, and how are they priced when they happen?
What are the notice period and the handover terms if you move on?

Get the answers in writing. A quote and a scope list side by side is the only fair comparison, and sending the same list to two firms makes the difference between them visible in minutes.

What should you watch for in how the service is run?

Watch the boundary between a firm that guides while you decide and a packaged arrangement that runs your company's finances for you. The Managed Service Company rules in Chapter 9 of ITEPA 2003 do not depend on a status test, and where they bite, unpaid PAYE can transfer as a personal debt to the worker and to the directors. Providing accountancy services in a professional capacity is expressly carved out by s.61B(3), so an independent firm whose client makes their own decisions and could leave freely sits on the safe side of that line. The risk sits with standardised products that influence or control how you are paid. The MSC legislation guide sets out the risk factors, and the well-known test cases were before the First-tier Tribunal during 2026 and remain undecided as at September 2026, so treat this as risk management rather than a verdict on any provider.

Finally, check the exit before you need it. A clean handover, professional clearance and prompt release of records cost nothing while the relationship works and matter a great deal when it stops working. How to switch contractor accountant covers the sequence.

Not sure where you stand on IR35?

Book a free call with a specialist contractor accountant. We will review your contract, your working practices and your current structure. Plain English, no jargon.

Frequently asked questions

How much should a contractor accountant cost per month?: There is no single figure to quote. Fees move with the scope of the work, whether your engagements are inside or outside IR35, whether VAT and payroll are running, and whether software sits inside the fee. The useful comparison is scope against scope: send two firms the same written list of items you need covered, then compare the totals including anything either of them charges as an extra.
What should a monthly contractor accountancy package normally include?: For a limited company contractor, a full package normally covers statutory year-end accounts, the CT600 corporation tax return, Companies House filings and the confirmation statement, RTI payroll for the director's salary, dividend paperwork, VAT returns where you are registered, and the director's self assessment return. Registered office provision, bookkeeping software and status work are the items most likely to sit outside the fee, so confirm each one in writing.
Is a fixed monthly fee better than hourly billing?: A fixed monthly fee suits recurring compliance work because the volume is predictable and you can budget for it. Hourly or project pricing usually fits one-off events better: incorporation, a company purchase, an HMRC enquiry, or a members' voluntary liquidation. Many contractors end up with both, so ask which events fall outside the monthly fee and how those are quoted before you sign anything.
Does a contractor accountant handle MTD for Income Tax?: Only where you hold income that brings you into it, which for most limited company contractors means no. The regime reaches sole trader and landlord income, and the qualifying income entry point is £50,000 from 6 April 2026, then £30,000 a year later and £20,000 the year after that. Salary and dividends from a personal service company are outside it, because those profits are filed under corporation tax. Where you do have freelance or rental income alongside the company, ask whether the quarterly updates and the final declaration sit inside the monthly fee or are billed on top.
Should IR35 status work sit inside the fee?: Ask, because practice varies. Some firms include a general view on how an engagement looks and help you gather working practices evidence, while a formal contract review or a challenge to a Status Determination Statement is quoted separately. Neither approach is wrong, but a fee that includes no status support at all is not comparable with one that does. Under Chapter 10 the client issues the determination and you have a disagreement route if it looks wrong.
Are accountancy fees a deductible company expense?: Fees incurred wholly and exclusively for the purposes of the company's trade are deductible against corporation tax, so the after-tax cost of a fee is lower than the headline amount. Personal work, such as a self assessment return covering income unconnected with the company, is not a company expense and should be identified separately on the invoice. Ask the firm how it splits company items from personal ones.