VAT returns are not exactly something you wake up excited about, right? But if you’re running a business, they’re just part of the deal. Whether you’re filing your first return or you’re considering outsourcing to an accountant, you’re probably wondering: how much is this going to cost me?
Let’s break it down in plain English: what accountants actually charge for VAT returns in the UK, what affects those fees, and how to know if you’re getting good value for money.
Why Pay Someone to Do Your VAT Return?
First things first. Is it even worth paying someone to handle your VAT returns?
If you’re confident with numbers, deadlines, and HMRC’s ever-evolving rules, then maybe not. But for many business owners, VAT isn’t just another line on a form, it’s a minefield. A mistake could mean penalties, missed reclaim opportunities, or serious stress.
That’s where accountants who specialise in VAT returns services come in.
Hiring a pro means:
- Less time stressing over spreadsheets
- Fewer errors (and fewer headaches from HMRC)
- More peace of mind that your business is staying compliant
- Possibly saving money by spotting reclaimable VAT you’d have missed
And importantly, your VAT return becomes one less thing to worry about.
What Affects the Cost of a VAT Return?
Let’s cut to the chase: there’s no flat rate for this stuff. But here’s what typically influences the fee:
1. Complexity of Your Accounts
If you’ve got a simple setup, maybe a few invoices, low transaction volume, the cost stays low.
If your business has multiple revenue streams, lots of expense claims, or international sales, expect to pay more.
2. Frequency of Returns
VAT returns are usually quarterly. That’s four per year.
Some accountants offer a bundled deal (e.g., £X/month includes quarterly VAT), while others price per return.
3. How You Keep Records
Are your accounts tidy and cloud-based (e.g. Xero, QuickBooks)?
Or are you handing over a shoebox of receipts?
Clean digital records = faster work = lower fees.
4. Whether It’s Part of a Package
If your accountant already handles your bookkeeping or year-end accounts, VAT returns may be cheaper as part of the bundle.
So… How Much Do Accountants Charge?
Here’s the ballpark most UK businesses can expect:
- Basic VAT return (for a sole trader or micro business):
From £50–£100 per return - Standard SME VAT return (with a moderate number of transactions):
Around £100–£250 per return
Or £80–£150/month as part of ongoing support - Complex VAT return (e.g., partial exemption, overseas sales, group VAT):
Could exceed £300+ per return, depending on the work involved
Keep in mind that these are guidelines, not price tags set in stone. Your specific fee will depend on your business, your accountant, and what’s included in the service.
Some firms offer fixed fees, so you always know what you’ll pay. Others may work on hourly rates, typically ranging from £40 to £150/hour depending on seniority and region.
Monthly Packages vs. One-Off Returns
Here’s where things get interesting: if you need more than just VAT, many accountants will offer monthly packages that include:
- VAT returns
- Annual accounts
- Self-assessment or corporation tax filing
- Payroll
- Ongoing advice
Typical packages might range from:
- £60–£150/month for sole traders or small limited companies
- £200–£400+/month for growing businesses with more complex needs
If you’re paying just for VAT returns, and doing everything else yourself, you’ll likely be charged per return instead.
So if you’ve been Googling “accountant fees for VAT returns” or “should I go monthly or pay as I go?”, the answer really depends on how hands-on you want to be and how often you want expert input.
How to Tell If You’re Getting Good Value
Here’s what to look for in a VAT return service that’s worth your money:
- They explain things clearly and don’t drown you in jargon
- They offer transparent fees with no surprise add-ons
- They file on time and keep you updated with any changes
- They check for reclaim opportunities and maximise deductions
- They’re registered and experienced with HMRC processes
If you’re being quoted £300 for a VAT return and your accounts are simple, that’s probably too high. On the flip side, if you’re paying £30 and getting radio silence when something goes wrong… that’s a red flag.
Real Example Scenarios
Let’s say:
You run a local landscaping business.
You have around 10–15 invoices a month, use accounting software, and you’re VAT-registered. Expected cost: ~£100 per return or £90/month as part of a basic package.
You run an e-commerce store with UK and EU customers.
Lots of transactions, digital tools, some cross-border tax rules.
Expected cost: £150–£300 per return or a monthly fee that includes bookkeeping and returns.
You’re a self-employed consultant with minimal expenses.
Just a few invoices per month and simple setup.
Expected cost: ~£60–£90 per return if handled separately.
FAQs About VAT Return Fees
How much do accountants charge for VAT returns in the UK?
Anywhere from £50 to £300+ per return, depending on your setup, volume, and how much work is involved.
Is it cheaper to do VAT returns as part of a monthly package?
Usually, yes, especially if you also need help with bookkeeping, payroll, or other tax returns.
Can I do my VAT return myself to save money?
Yes, but it comes with risks. Mistakes can lead to fines, missed reclaim opportunities, and a lot of wasted time. If you’re not confident, hiring a pro is often worth it.
Are VAT return fees tax deductible?
Yes. The fees you pay your accountant for business-related services are typically an allowable business expense.
Want to Take VAT Returns Off Your Plate?
Let’s be honest, even if you can do your VAT returns, it doesn’t mean you should. Time spent stressing over HMRC guidelines is time you could spend growing your business.
If you want to simplify your accounting and keep your returns compliant, working with a VAT accountant can make the whole process smoother, faster, and less stressful.
