What does a limited company accountant cost?

Being a director of a limited company, comes with additional responsibilities, like filing paperwork and accounts with Companies House and HMRC by specific dates. Failure to do so can lead to you to being penalised.

Finding the time to stay on top of this, alongside working can be stressful. That’s why most contractors decide to build a relationship with an experienced contractor accountant.

This article looks what you can expect to pay a contractor accountant and what this fee includes.

Accountant’s fees

To start with, there’s no set fee when it comes to working with a limited company accountant. Typically, contractor accountants charge on a monthly basis, and the fee will depend on what is included in the package.

Our accounting packages start at £99 per month, which is perfect for contractors who are just starting out and go up to £159 per month which is for a fully inclusive package.

When choosing an accountant, cost should be a factor, but it shouldn’t be the deciding factor. Our article, ‘How to choose a contractor accountant’ gives tips on what to consider when choosing an accountant to look after your limited company.

What is included in the monthly cost?

When choosing an accounting package, you should ask if it includes the core services that are fundamental to ensuring your limited company is fulfilling its legal obligations. These core services include:

• Completing your company’s annual accounts
• Processing payroll for you and any other staff members
• Submitting quarterly VAT returns (if you are VAT registered)
• Managing any correspondence from Companies House

Additional services you may be charged for include:

• Administration of forming your limited company
• Providing a registered office address – where all correspondence will be sent to
• Preparation and submission of your personal tax return (Self-Assessment)
• Submitting your company’s Confirmation Statement to Companies House
• Costs that arise from taking on extra staff (e.g. payroll)
• Completing tax returns for employees
• Providing references for mortgage applications

One area where it is important to check that the accountant has experience in is conducting IR35 reviews. An IR35 review will look at the details of your contract and your working practices to determine your IR35 status.

If you take on a contract without an IR35 review and HMRC deem you are working inside IR35, you will be taxed at source as if you are an employee.

With over 20 years’ experience working with contractors, we understand how important expert IR35 advice is. We are pleased to say that all our monthly accounting packages include IR35 reviews and advice at no extra charge.

If you’d like to find out further details on our monthly accounting packages or if you would like to chat with one of our Directors to see how our services can benefit your limited company, give us a call on 01962 867550 or send us a message via our website.