Why there is no single price
People often look for a typical fee. We do not publish one, for a good reason: there is no typical client. A sole trader with one business, a bank feed and twenty transactions a month is a different job from a landlord with four jointly owned houses and a shoebox of receipts. Firms also include different things in their price. A low headline figure can turn out dearer than a higher one once software, bookkeeping and extras are added.
What you can do is understand the ways firms charge, know what drives the price up or down, and ask each firm the same questions. Then the quotes become comparable.
The three common ways firms charge
A fixed monthly fee
Increasingly common for MTD work. You pay the same amount each month, usually by direct debit, and the fee covers an agreed list: often the four quarterly updates, the final declaration and some support in between. It spreads the cost and makes it predictable. Check the minimum term and what happens if you leave part-way through the year.
A price per update plus a year-end fee
Some firms charge for each quarterly update and separately for the final declaration. This can suit people who send tidy figures and only need the firm to check and submit. Watch for charges when an update needs more work than expected.
A single yearly fee
The traditional model, now adapted to cover the quarterly updates as well as the year end. It is simple to compare but you may pay a large part of it at once.
Whichever model a firm uses, turn every quote into a total for the year, with and without VAT, before you compare.
What pushes the price up or down
- Number of income sources. Each business and each property income source needs its own records and updates.
- Volume of transactions. More sales and expenses means more to check each quarter.
- The state of your records. Digital, linked to the bank and up to date costs least. Paper and late costs most.
- Who does the bookkeeping. If the firm enters your transactions for you, expect to pay for that time.
- Software. A licence included in the fee makes the quote look higher but may be cheaper overall.
- Joint ownership and other complications. Working out shares, foreign property, or capital allowances all add time.
- How you want to work. Regular face-to-face meetings usually cost more than email and video.
Seven things to ask every firm
| Ask about | What to find out |
|---|---|
| What is included | Four quarterly updates, the final declaration, records or bookkeeping, software, phone and email help. |
| What is extra | Catching up old records, an extra property or business mid-year, late information, HMRC enquiries. |
| How it is charged | Monthly, per quarter or yearly. By direct debit or invoice. |
| Who does the bookkeeping | You, the firm, or a bookkeeper. This is often the biggest single cost difference. |
| Software | Which product, who pays the licence, and whether the firm will set it up. |
| VAT | Is the firm VAT-registered, and is the quote shown with VAT? |
| Notice period | How you leave if it does not work out, and whether any fees are paid in advance. |
Ask every firm the same seven questions and write the answers side by side. The differences usually explain the gap between the cheapest and dearest quote, and often show the cheapest is not doing the same job.
Extras that catch people out
- Catch-up work. If your records for the current year are behind when you sign up, the first quarter may cost more.
- Late information. Some firms charge a premium if you send your figures after their cut-off date for a quarter.
- Mid-year changes. Starting a second business or buying a property part-way through the year can change the fee.
- HMRC enquiries. Dealing with questions from HMRC is usually outside a standard fee, though some firms offer cover for it.
- Software price rises. If you pay the software company directly, its price can change independently of your accountant’s fee.
Cutting the cost without cutting corners
The cheapest way to use an accountant is to make their job quick. Link your business bank account to your software, photograph receipts as you go, keep business and personal spending in separate accounts, and send each quarter’s information before the firm’s cut-off. Some people do their own updates and pay only for the final declaration; others use a bookkeeper for the quarterly work, as a supporting agent, and an accountant for the year end. Our guide Do I need an accountant for MTD? covers those options.
Getting comparable quotes
The fastest route is to describe your situation once, in the same words, to several firms. That is what our quote form does. Tell us whether your income is from self-employment, property or both, roughly how much, and where you are, and we pass it to up to four firms that suit. They quote on the same information, so you can compare like with like, and there is no charge to you.