A limited company costs more to look after than a sole trader, not because accountants charge companies a premium but because the law asks more of a company. Statutory accounts, a Company Tax Return, a confirmation statement and payroll for even a single director are all recurring obligations, and each is a deliverable your fee has to cover. Understanding that list is the key to reading any quote.
For the drivers common to every business type, see the pillar guide on small business accountancy costs.
The statutory workload a company fee must cover
Running a company brings a fixed set of filings regardless of size. GOV.UK summarises them under running a limited company:
- Statutory accounts prepared to the required standard and filed with Companies House
- A Company Tax Return with the Corporation Tax calculation behind it
- The confirmation statement and other company secretarial filings
- Payroll, in most owner-managed companies, so the director can draw a salary
- The director’s Self Assessment return, needed in many cases where dividends or other untaxed income arise
A quote that looks cheap sometimes covers only the first two items. Check the whole list before comparing.
Where company fees diverge from each other
Beyond the fixed obligations, four things separate a light package from a heavy one:
- Activity levels. Transaction volume drives bookkeeping and reconciliation time, exactly as it does for any business.
- Payroll size and frequency. One director paid monthly is minimal work; a team with starters, leavers and pension duties is a service in its own right (see what affects payroll service costs).
- VAT. Quarterly returns add recurring work and deadline responsibility throughout the year.
- Dividend administration. Board minutes, dividend vouchers and checks that distributions are lawful take time that sole traders never generate.
Salary, dividends and why advice is part of the fee
Owner-managers usually take income as a mix of salary and dividends, and getting that mix right needs planning against current rules rather than a one-off setup. This is a genuine part of the value in a company package: a firm that reviews your remuneration each year, rather than repeating last year’s pattern, is doing work that shows up in your own pocket. When comparing quotes, ask whether remuneration planning is included or counts as billable advice.
What a typical company package covers and what it excludes
A common monthly arrangement includes the statutory filings above, director payroll, the director’s personal return, VAT returns where registered, software access and a defined support level. Typical exclusions to check for: bookkeeping itself, additional directors’ returns, dormant or associated companies, HMRC enquiry defence, references for mortgages, and catch-up work. We cover the anatomy of a good bundle in what a monthly accountancy fee should include, and our own inclusions are on the fees page.
Comparing two company quotes
| Deliverable | Quote A says | Quote B says | What to ask |
|---|---|---|---|
| Statutory accounts and filing | ? | ? | Included and filed, or prepared only? |
| Company Tax Return | ? | ? | Who signs off and submits? |
| Director payroll | ? | ? | How many directors and pay runs? |
| Director Self Assessment | ? | ? | Included for how many people? |
| VAT returns | ? | ? | All quarters, or per-return billing? |
| Support | ? | ? | Unlimited queries or logged time? |
Fill the grid in from each proposal’s own wording. Anything a firm will not put in writing should be treated as excluded.
Frequently asked questions
Why is my company quoted more than my friend’s company?
Because fees follow activity, not the word “limited”. Different turnover, transaction volume, staff numbers, VAT status and record quality produce different workloads even for companies in the same trade.
Is the director’s personal tax return usually included?
Often for one director, not always for several. It is one of the most common gaps between packages, so confirm the number of returns covered in writing.
Do dormant or barely trading companies still pay accountancy fees?
Yes, though far less. Filings are still due even with little activity. Tell the firm honestly how active the company is and ask for a scope to match.
Should I stay a sole trader to save on accountancy?
Accountancy cost alone is a poor reason to choose a structure; tax, liability and credibility matter more. Compare the two properly with our guide to sole trader accountancy costs and take advice on the whole picture.
What happens to the fee as the company grows?
Expect a review when something structural changes: VAT registration, first employees, a second director. A good firm flags the change before billing it rather than after.
Get a company package priced on your numbers
Our limited company accountancy service covers the full statutory workload with the inclusions listed openly. Request a quote with a few details about your company and we will show you exactly what your fee would include.