How much does a bookkeeper cost in the UK? (2026 guide)
Why bookkeeping costs vary so much
No two businesses are the same. A sole trader with 30 bank transactions per month has very different needs to a VAT-registered Ltd company with 300 transactions, multiple employees, and quarterly returns to file. The price reflects the complexity, not just the time.
The three biggest factors that affect your bookkeeping cost are: transaction volume (how many transactions go through your accounts each month), the services included (basic bookkeeping only vs. bookkeeping plus VAT, payroll, and management accounts), and the type of provider you use (traditional local firm, online firm, or remote specialist).
UK bookkeeping costs by service type
| Service | Market rate | Cledger price |
|---|---|---|
| Bookkeeping only (up to 150 txns) | £200–£400/mo | From £175/mo |
| Bookkeeping + VAT returns | £350–£600/mo | From £274/mo |
| Bookkeeping + VAT + Payroll | £450–£800/mo | From £303/mo |
| Full finance outsourcing | £800–£2,000/mo | From £449/mo |
| VAT return only (one-off) | £150–£400/qtr | £99/mo |
| Self Assessment (one-off) | £150–£400/yr | £65/mo |
| CT600 Corporation Tax | £300–£600/yr | £65/mo |
Hourly rates vs monthly packages, which is better?
Most professional bookkeepers charge either a fixed monthly retainer or an hourly rate. Hourly rates in the UK typically range from £20–£50/hour for a self-employed bookkeeper, and £40–£80/hour for a firm. The problem with hourly billing is unpredictability, your bill varies every month and you never quite know what you are paying for.
Fixed monthly packages are almost always better for small businesses. You know exactly what you are paying, what is included, and there are no surprises at the end of the month. Every reputable online bookkeeping firm, including Cledger, operates on fixed monthly fees.
The real cost of doing it yourself: Many business owners try to handle their own bookkeeping. At an average hourly rate of £25 for a business owner's time, spending just 4 hours per month on bookkeeping costs you £100/month in lost productivity, before accounting for errors, missed deductions, and HMRC penalties.
What affects the price most?
Transaction volume is the single biggest driver. Bookkeepers price based on how many bank transactions, invoices, receipts, and payments flow through your accounts each month. A business with 50 transactions/month is significantly cheaper to service than one with 500.
VAT registration adds meaningful cost. If you are VAT-registered, your bookkeeper needs to process input and output VAT on every transaction and file quarterly returns. This typically adds £80–£200/month to the base bookkeeping cost at traditional firms.
Number of entities matters too. If you run multiple companies or have a holding structure, you will need bookkeeping across all entities, which multiplies the work, though most firms offer a bulk discount.
Traditional firm vs online bookkeeper, what is the difference?
| Factor | Traditional firm | Online bookkeeper |
|---|---|---|
| Price | £300–£1,000/mo | £150–£500/mo |
| Transparent pricing | Rarely | Always |
| Dedicated contact | Sometimes | Usually |
| MTD compliant | Varies | Yes |
| Software | Often IRIS/Sage | Xero/QuickBooks |
| Speed of communication | Slow (days) | Fast (hours) |
Key takeaway: Online bookkeepers consistently offer the same quality of service as traditional firms at 30–50% lower cost, because they have lower overheads. The switch to cloud accounting (Xero, QuickBooks) has made remote bookkeeping just as effective as face-to-face.
How much should you pay? A simple guide
As a rough guide: sole traders and freelancers with simple finances should expect to pay £100–£200/month. Small Ltd companies with VAT and 1–5 employees should budget £200–£400/month. Growing businesses with payroll, VAT, and management accounts should plan for £400–£700/month. Anything above £800/month for a small business is almost certainly overpaying.
What Cledger charges, and why
Cledger is a UK-registered accountancy firm with qualified accountants delivering bookkeeping, VAT, payroll and management accounts remotely. Our pricing is turnover-based, which means a £5M business pays more than a £100k business for the same service, because the work is genuinely more complex. Our prices are typically 30 to 40% below traditional UK firm fees because we operate remotely with lower overhead, and we pass that saving directly to you.
Unlike firms that hide prices and force you to book a call before you know what anything costs, our full pricing calculator is live on our website. You select your services, see your exact monthly price, and can request a quote instantly. For a full breakdown of our fixed packages and what each includes, see our bookkeeping prices and packages page.
Frequently asked questions
How much does a bookkeeper cost in the UK?
A bookkeeper in the UK costs £20–£50 per hour, or £150–£800 per month on a fixed monthly package. Most small businesses pay £200–£400/month for bookkeeping with VAT returns. Online firms such as Cledger start at £175/month, typically 30–40% below traditional firm fees.
Is it cheaper to use an online bookkeeper than a local firm?
Yes. Online bookkeepers typically cost 30–50% less than traditional high-street firms because they have lower overheads. Cloud accounting software such as Xero and QuickBooks means the quality of service is equivalent, with faster communication.
What affects bookkeeping prices the most?
Transaction volume is the biggest driver — more bank transactions, invoices and receipts mean more work. VAT registration typically adds £80–£200/month at traditional firms, and running multiple companies multiplies the cost.
Should I pay a bookkeeper hourly or monthly?
Fixed monthly packages are better for most small businesses: you know exactly what you pay and what is included. Hourly billing (£20–£50/hour for freelance bookkeepers) varies month to month and makes budgeting difficult.
How much should a small limited company budget for bookkeeping?
A small VAT-registered limited company with 1–5 employees should budget £200–£400 per month for bookkeeping, VAT returns and payroll. Anything above £800/month for a small business is almost certainly overpaying.
Noor Muhammad
Founder & Principal at Cledger. Part-qualified ACCA with 4+ years of UK public practice experience across VAT, corporation tax (CT600), payroll, management accounts and final accounts, working with Xero, QuickBooks, IRIS and CCH. About the team →