BEHIND THE NUMBERS
How this calculation works
Worked example
Base £1,200 + document excess £150 + payroll £300 + filings £460 + software £120 = £2,230 before VAT. Illustrative 20% VAT adds £446, giving £2,676 annually or £223 monthly. Setup costs £120 including VAT, so the first year totals £2,796.
Example result: £2,676.00
Start with the scope before comparing the price
A monthly package may cover annual accounts while leaving bookkeeping or personal returns outside it. Read the included-service list first, then enter only the genuinely additional work. Two quotes with the same headline price can cover different periods or different numbers of returns. Put that distinction in the quote reference so the breakdown remains understandable.
Documents and payroll use the provider’s charging unit
Some firms count transactions, others documents or invoices. Use the unit defined in the quote: importing a bank line and processing its invoice should not automatically count twice. The document allowance resets every month in this model. Payroll combines a fixed run charge with a charge per payslip, so a weekly payroll can cost more than a monthly one even with the same headcount.
Annual cost and monthly payments answer different questions
The monthly equivalent spreads the annual service budget over twelve months. An annual filing charged on completion may make actual cash payments uneven. The first-year figure also includes setup or catch-up work once; that charge does not recur in the annual headline. If your instalments are only payments on account, check the final fee against the engagement terms.
Assumptions and rounding
- A full year of services with constant monthly volumes and an unchanged package.
- Every filing row, software fee and selected extra is outside the base package. All quoted amounts use one VAT rate and a consistent net/gross basis.
- Example fees are fictional arithmetic inputs, not UK average prices or an offer from an accountant.
Questions about this calculator
Does this tell me what an accountant should charge?
No. It calculates the cost of the terms you supply. It does not choose a market rate or evaluate the quality of the proposed work.
What if annual accounts are included in my monthly package?
Do not add them as a separate filing fee. Use a zero fee or remove that row. If all filings are included, enter None,0,0.
Can I use hourly bookkeeping instead of document pricing?
Yes. Select the hourly mode and enter extra monthly hours and the quoted hourly fee. Document figures then do not contribute to the total.
Does selecting VAT returns make the accountant’s fee subject to VAT?
No. VAT-return work is a service line. VAT charged on the accountant’s own fee is a separate input taken from the quote.
Why is there no tax refund deduction?
The budget shows cash fees including the entered VAT. Recoverability and expense deductibility depend on the business and its tax treatment, so they are not assumed.