What Is Included in a Typical Agency Accountant Fee and What Is Extra

Why Agency Accountant Fees Vary So Much

If you've asked three different firms for a quote, you've probably got three completely different numbers. One might quote £150 per month. Another £450. A third might say "it depends." None of them explain why.

The problem is simple: there's no standard scope for an "agency accountant." Some firms include everything except the kitchen sink. Others quote a bare-bones price and charge for every phone call.

As ICAEW qualified accountants working exclusively with agency founders, we see this confusion every day. So let's cut through it. Here's what a typical agency accountant cost covers, what it doesn't, and where you'll get stung if you don't ask the right questions upfront.

The Core Services: What a Standard Fee Should Include

A proper agency accountant fee, typically between £200 and £600 per month for a growing agency, should cover these basics as a minimum. If your quote doesn't include them, you're paying for a bookkeeper, not an accountant.

Year-End Statutory Accounts and Corporation Tax

This is the non-negotiable. Every limited company must file annual accounts with Companies House and a corporation tax return (CT600) with HMRC. Your accountant should prepare both from your records.

For a typical agency turning over £200k to £1m, expect this to be the single biggest chunk of work. The fee should cover preparing the accounts, calculating your corporation tax liability, and filing everything on time. If your accountant charges extra for the CT600 filing, ask why.

Confirmation Statement Filing

This annual filing to Companies House confirms your director details, registered address, and share structure. It's a 10-minute job. It should be included in your monthly fee, not billed as an extra.

PAYE and RTI Submissions

If you run payroll for yourself and your team, your accountant should handle the monthly Real Time Information (RTI) submissions to HMRC. This includes calculating PAYE, National Insurance, and pension deductions. Some firms charge extra if you have more than a certain number of employees. Ask about the threshold.

VAT Returns (Standard)

Most agencies are VAT registered, so quarterly VAT returns are standard. Your accountant should prepare and submit these from your bookkeeping data. If they charge per VAT return on top of your monthly fee, that's a red flag, unless your agency has unusually complex VAT (flat rate scheme changes, partial exemption, or cross-border transactions).

Basic Bookkeeping Support

This is where definitions get fuzzy. "Bookkeeping support" can mean anything from "we check your Xero file once a quarter" to "we code all your transactions weekly." Most standard fees include a monthly review of your bookkeeping to ensure records are accurate enough to produce accounts. They do not include doing all your data entry.

If you're using cloud software like Xero, QuickBooks, or FreeAgent, your accountant should connect to it, review the transactions, and flag issues. If you're still sending paper receipts in a shoebox, expect a separate bookkeeping charge.

Dividend Calculations and Vouchers

If you take dividends (and most agency founders do), your accountant should calculate the amounts and provide dividend vouchers. This is typically included in the monthly fee, assuming you're taking regular dividends within your tax-efficient salary and dividends structure.

Personal Tax Return (Director Only)

Most agency accountant fees include one personal self-assessment tax return (SA100) for the director. If you have a spouse who is also a director and shareholder, that's usually a separate charge, typically £150-£300 per additional return.

The Grey Area: Services Sometimes Included, Sometimes Extra

These are the services that trip founders up. One firm includes them; another charges extra. Always ask before signing.

Management Accounts

Monthly or quarterly management accounts, a P&L, balance sheet, and cash flow statement, are essential for running a growing agency. But they are not the same as statutory accounts. Management accounts require more frequent work: reconciling, adjusting, and interpreting the numbers.

Some accountants include basic management accounts (a simple P&L) in the standard fee. Others charge £200-£500 per month extra for full management accounts with commentary. If you're scaling past £500k turnover, you probably need them. If you're a solo freelancer turning over £65k, you probably don't.

IR35 Reviews and Status Determination Statements

If you use contractors, you need to issue Status Determination Statements (SDS) before engaging them. Some accountants include a basic IR35 review in the monthly fee. Most don't, especially if you have multiple contractors or complex engagements.

A full IR35 review, including a written SDS, typically costs £150-£400 per contractor. For agencies with 5+ contractors, this can add up quickly. Our IR35 guide for agency founders covers this in more detail.

R&D Tax Credit Claims

Many digital, software, and creative agencies qualify for R&D tax credits. But preparing a claim requires technical narrative, cost breakdowns, and often a separate report. Most accountants charge extra for this, typically 10-20% of the claim value, or a fixed fee of £500-£2,000.

If your accountant tells you R&D claims are "included," ask what the cap is. Some firms include one small claim per year but charge for larger or more complex ones.

Company Secretarial Work

Changing directors, issuing new shares, or restructuring your shareholding? This is not included in a standard fee. Each change typically costs £100-£300, plus any Companies House filing fees.

HMRC Investigations and Enquiries

If HMRC opens an enquiry into your tax return, that's extra. Always. No accountant includes this in a standard monthly fee. The cost depends on the complexity, but expect £500-£5,000 for a straightforward enquiry. If you're in the tax and compliance category with complex affairs, this risk is higher.

The Hard Extras: What You'll Definitely Pay For Separately

These services are almost never included in a standard agency accountant cost. Budget for them separately.

Exit Planning and Business Sales

If you're selling your agency, you need Business Asset Disposal Relief (BADR) planning, share valuation, due diligence support, and tax clearance applications. This is project work, not monthly accountancy. Fees range from £2,000 to £15,000+ depending on deal size and complexity.

We cover this in detail in our growth and exit resources.

Holding Company or Group Structures

If you're setting up a holding company to own multiple agencies or to route dividends tax-efficiently, that's a one-off project. Expect £1,000-£3,000 for the initial setup, plus ongoing consolidation work in the monthly fee.

Forecasting and Cash Flow Modelling

Some accountants include basic cash flow forecasting. Most don't. A detailed 12-month cash flow model with scenario planning typically costs £500-£1,500 as a one-off, or an additional £200-£400 per month if updated regularly.

VAT Special Schemes and Complex VAT

If your agency uses the flat rate VAT scheme, or you have cross-border sales (common for agencies with UAE clients), your VAT work becomes more complex. Most accountants charge extra for this, typically 20-50% more on the VAT element of the fee.

If you're a UAE-based agency founder reading this, our agency services page covers how we handle international tax structures.

Payroll for Multiple Employees

Most standard fees cover payroll for 1-2 directors. If you have 5, 10, or 20 employees, expect an additional charge, typically £5-£15 per employee per month. This covers pension auto-enrolment, RTI submissions, and P60s at year-end.

How to Read an Agency Accountant Quote

Here's a practical checklist. When you receive a quote, ask these five questions:

• What is included in the monthly fee? Get a bullet-point list. If they say "all standard compliance," ask them to define "standard."
• What is charged per hour or per project? Some firms quote a low monthly fee but charge £150-£250 per hour for everything outside the scope. Ask for a schedule of chargeable extras.
• How many director personal tax returns are included? One or two? If you have a spouse who is a shareholder, is their return included?
• What bookkeeping support is included? Is it a monthly review, or do they expect you to do all data entry? If you need them to code transactions, what does that cost?
• What happens if HMRC opens an enquiry? Is there a cap on the investigation support included in your fee? Most firms exclude this entirely.

What a Realistic Agency Accountant Cost Looks Like

Let's ground this in real numbers. These are typical ranges for a UK-based digital agency using cloud accounting software:

• Solo agency founder (turnover £60k-£150k, no employees, standard VAT): £150-£250 per month. Includes year-end accounts, CT600, one personal tax return, quarterly VAT, and basic bookkeeping review.
• Small agency (turnover £150k-£500k, 2-5 staff, standard VAT, 1-2 contractors): £300-£500 per month. Includes everything above plus payroll for up to 5 employees, management accounts (simple P&L), and IR35 reviews for up to 2 contractors.
• Growing agency (turnover £500k-£1.5m, 5-15 staff, complex VAT, multiple contractors): £500-£900 per month. Includes full management accounts, payroll for up to 10 employees, IR35 reviews for up to 5 contractors, and quarterly cash flow reporting.
• Established agency (turnover £1.5m+, multiple entities, group structure): £1,000-£2,500+ per month. Includes consolidated accounts, group VAT, multi-entity payroll, and strategic tax planning.

These are ballpark figures. Your actual agency accountant cost depends on transaction volume, complexity, and how much bookkeeping you do yourself. The key is knowing what you're getting for your money.

How to Avoid Surprise Charges

The single best thing you can do is ask for a written scope of services before you engage. A reputable firm, like ours at Agency Founder Finance, will give you a clear breakdown. We're ICAEW qualified accountants who work exclusively with agency founders, so we know exactly what agencies need and what they don't.

If a firm won't put their scope in writing, walk away. If they say "everything is included" but can't list what "everything" means, walk away. Transparency is the baseline, not a bonus.

The Bottom Line

A good agency accountant should save you more than they cost. But only if you know what you're paying for. The cheapest quote is rarely the best value, not because the work is worse, but because the scope is narrower. The most expensive quote might include services you don't need.

Match the scope to your agency's stage. A solo founder doesn't need full management accounts. A 15-person agency with contractors, R&D claims, and international clients needs more than a basic compliance service.

If you're unsure what your agency needs, get in touch. We'll give you a transparent quote with a clear scope. No hidden extras. No jargon. Just the services you actually need.