Appointing an accountant is no legal obligation in the UK. However, it is very challenging to say the least unless you are well versed with bookkeeping and tax filing. For most people, it is advisable to appoint a specialist limited company accountant.
If you are just starting out, hiring a limited company accountant can help a lot. They can help you with your accounting and tax related matters as well as help in dealing with HMRC and Companies House.
The number of small accountancy firms have increased quite a bit and finding an accountant who is an expert in limited company accounting and tax related matters can be quite challenging. You need to find and appoint an accountant who is well experienced in handling limited company accounts and tax returns in a HMRC compliant manner.
Now that you know why you should hire a limited company accountant, let us look at what services they offer and for what fee.
Which services do limited company accountants offer?
- Submission of annual tax returns and self-assessments to HMRC
- Quarterly and year-end VAT returns
- Personal tax consultation and protection against HMRC investigations
- Complimentary company formation and Companies House filings
- Registered office address services
- Assistance with setting up business banking
- IR35 compliance review
- Personal tax guidance
- Dedicated account manager support
- Face-to-face, email, and phone assistance
- 24/7 access to an online portal
- Provision of employee references
- Annual business performance review
- Business insurance coverage (including Public Liability, Professional Indemnity, and IR35)
- Calculation of dividends and corporation tax
How much does a limited company accountant charge in the UK?
For basic accounting services, a limited company accountant can charge from anywhere between £50 to £150 per month. This fee usually includes bookkeeping, annual accounts preparation, and submission of tax returns.
For companies that require a more comprehensive services, like payroll management, VAT returns, and tax planning, then fees might range from £150 to £300 per month or more.
For specialised services like IR35 review, HMRC investigation protection or any other business advisory services, you may need to pay an additional £500 to £1000+ per year.
There are accountants who also charge on an hourly basis for ad hoc tasks, fees for such tasks range from £50 to £300 per hour depending on the complexity of the task and accountant’s expertise.
How to find and appoint a limited company accountant?
It can be a bit challenging to find a limited company accountant that meets your business needs. Especially when there are thousands of small and big accountancy firms in the UK.
Follow these 8 easy steps to find an accountant:
- Understanding Requirements: Before you begin your search, list down your business requirements, set your expectations clearly and understand what services you need. Do you require a basic bookkeeping services or a comprehensive package or specialised services. Ask yourself if you need it on ad hoc basis or do you need ongoing support on a permanent basis.
- Experience Matters: When it comes to accounting, experience matters a lot. Look for an accountant who has good experience of handling limited company accounting & tax matters. It would also be beneficial for your accountant to have industry specific expertise. For example, if you are an IT Contractor and if the accountant you are looking to appoint has experience of working with IT Contractors then it would greatly help you.
- Check Qualification and Memberships: In the UK, a qualified accountant would have a certification from professional bodies such as the Association of Chartered Certified Accountants (ACCA), the Institute of Chartered Accountants in England and Wales (ICAEW), or the Chartered Institute of Management Accountants (CIMA). Membership with these organisations indicates that the accountant upholds high professional standards and is dedicated to continuous professional development.
- Recommendations: One of the best and easiest way to find a quality accountant is through recommendations and referrals. Though referrals are not always reliable since some accountants offer a commission/reward for referrals, they are good to have. If your friend, colleague, or other business owners refer you an accountant, it may make your job a lot easier. You can also look up on online forums, business groups or directories to find an accountant. Go on sites like Google and Trustpilot and check their online reviews.
- Fees vs Services: Find out how much do they charge and what services they offer for their fee. While fees may be a major deciding factor, it may not have anything to do with the quality of their services. Get a clear understanding of how much fees they charge and what services are included.
- Technology: In todays’ day and time, it is important to have access to your accounts 24/7. This can be done through an online portal or a mobile application. Find out if the accountant has one of these. Find out if they use latest technology and accounting software like Xero, QuickBooks and Sage. Ask potential accountants about the software they use and how it can benefit your business.
- Customer Support: This is a point often overseen by most people when looking for an accountant. It is very important to have a customer support available, preferably 24/7 via telephone, live chat or face-to-face. Find out what type of customer support does your accountant provide.
- Meet and Interview: Finally, it is time to meet and interview your potential accountant to discuss your requirements. Convey your expectations clearly to avoid any inconvenience or misunderstandings in the future. Try to meet them at their office and not at a Coffee shop. Meeting your accountant at their office gives you an idea about how good they might be.
Finding the right accountant for your limited company in the UK can make a significant difference to your business’s success. By understanding your needs, checking qualifications, seeking recommendations, and evaluating communication skills, you can ensure that you select an accountant who will provide the expertise, support, and value your business needs to thrive. Take your time in making this decision and remember that a good accountant is not just a service provider but a valuable partner in your business journey.
