How much does a bookkeeper cost in the UK? (2026 quick answer)
Most UK businesses pay between £100 and £900+VAT per month for outsourced bookkeeping, or £20–£50+VAT per hour if billed hourly. Per-transaction pricing typically lands at £1–£2 per transaction. A part-time in-house bookkeeper costs £12,000–£18,000 a year before employer NI and pension; a full-time one is £25,000–£32,000 loaded. The right number for you depends on transaction volume, software, and whether the bookkeeper also handles VAT, payroll and credit control.
This guide walks through every pricing model, shows what you actually get at each price point, compares in-house vs outsourced honestly, and lists the hidden charges that turn a "from £49/month" headline into a £150/month invoice. Written by Stephen Edwards FCCA, a Fellow of the ACCA with 25 years' experience and the UK's first Profit First Accountant of the Year (2022).
TL;DR — typical UK bookkeeper fees in 2026
- Hourly rate — £20 to £50+VAT per hour
- Per-transaction pricing — £1 to £2 per transaction
- Small business monthly retainer — £100 to £300+VAT (typical sole trader / small ltd)
- Mid-size monthly retainer — £300 to £900+VAT (£250k–£1m turnover)
- Part-time in-house bookkeeper — £12,000 to £18,000/year + NI + pension
- Full-time in-house bookkeeper — £25,000 to £32,000/year (~£35,000 loaded with on-costs)
- Specialist add-ons — VAT returns from £25–£75/month, payroll from £18+VAT/month, credit control £200–£500/month
If you'd rather skip straight to a fixed-fee quote, see our bookkeeping service or book a free meeting.
The four ways UK bookkeepers charge
Almost every bookkeeping quote you'll get falls into one of four pricing models. Understanding which one is being used — and which is actually best for your business — is the most important thing to get right.
1. Hourly rate (£20–£50+VAT/hr)
The traditional model. You pay for the time the bookkeeper spends. Junior or unqualified bookkeepers sit at £20–£30/hr, qualified (AAT or ICB) bookkeepers at £30–£40/hr, and Xero-certified senior bookkeepers at £40–£50/hr.
Best for: very low transaction volumes, or one-off catch-up work. Risk: you can't budget. A "quick month" might be 4 hours; a messy month with chase-ups can balloon to 12.
2. Per-transaction pricing (£1–£2 per transaction)
Common with cloud-bookkeeping firms. Every line on your bank feed is a transaction; receipts, sales invoices and bills are usually separate.
Best for: seasonal businesses with variable volume. Risk: bookkeepers may "discover" extra transactions, and split-coded transactions can be charged twice. Always ask exactly what counts as a transaction.
3. Fixed monthly retainer (£100–£900+VAT/month)
The modern industry standard, and the model we use at Gro. You pay the same agreed amount every month regardless of how messy or busy the month was. Includes bookkeeping, bank reconciliation, supplier set-up, and usually unlimited support.
Best for: almost everyone. Predictable budget, aligned incentives, easy to scale. Watch for: the scope of what's included — see the "hidden costs" section below.
4. In-house employment
You hire the bookkeeper directly. Salary £12k–£32k depending on hours and experience, plus 15% employer NI (the rate that took effect from April 2025), 3% pension minimum, holiday cover, sick cover, software licences, and recruitment cost.
Best for: businesses turning over £2m+ where you genuinely need someone in the building every day. Risk: if they leave, your finance function stops.
Bookkeeper fees table — what to budget in 2026
| Business profile | Typical bookkeeping cost | Recommended pricing model |
|---|---|---|
| Sole trader, <50 transactions/month | £100 – £200+VAT/month | Fixed retainer |
| Small ltd, 50–200 transactions/month | £200 – £400+VAT/month | Fixed retainer |
| Growing ltd, 200–500 transactions/month | £400 – £700+VAT/month | Fixed retainer |
| Established ltd, 500–1,000 transactions/month | £700 – £1,200+VAT/month | Fixed retainer or part-time in-house |
| £1m+ turnover, 1,000+ transactions/month | £1,200 – £2,500+VAT/month | Outsourced finance team or full-time in-house |
| Catch-up work / clean-up | £35 – £50+VAT/hour | Hourly |
| VAT returns (add-on) | £25 – £75+VAT/return | Add to retainer |
| Payroll (add-on) | From £18+VAT/month for directors; £4–£6/payslip for employees | Add to retainer |
What's actually included in a bookkeeping fee?
Two firms can both quote "£250/month" and deliver completely different services. Here's a clear specification of what should be included at each price point — and what often isn't.
Always included
- Bank feed reconciliation (matching bank transactions to invoices/bills)
- Sales invoice raising and chase-up (basic)
- Supplier bill processing
- Coding to the correct nominal accounts
- Year-end records ready to hand to your accountant
Sometimes included, often charged extra
- VAT returns — quarterly submission to HMRC, often £25–£75 per return on top
- Payroll — director-only is cheap (£18+VAT/month), full employee payroll £4–£6 per payslip
- CIS returns for construction businesses
- Management reports — proper monthly P&L and balance sheet with commentary
- Software subscriptions — Xero is £15–£35/month, sometimes included, often billed back
- Receipt capture tool (Dext, Hubdoc) — £15–£30/month
Almost never included unless explicitly added
- Credit control — chasing overdue invoices, £200–£500/month for a structured service
- Cash flow forecasting — £100–£300/month
- Stock counts and valuations
- Year-end accounts and Corporation Tax — that's an accountant's job, not a bookkeeper's
- Tax planning and advice — also an accountant's job
This is exactly where most of the value of going with a combined accountancy firm (rather than a standalone bookkeeper) comes in — at Gro, bookkeeping, VAT, payroll, year-end accounts and tax planning are bundled into one fixed monthly fee with no surprise add-ons. See our transparent pricing.
Hidden bookkeeping costs to ask about before signing
"From £49/month" is a marketing number. Always ask these questions before signing any bookkeeping engagement:
- Is the year-end included or extra? Some firms quote a low monthly fee and bill £400–£800 separately for year-end.
- What counts as a transaction? Per-transaction pricing can double if split-coded items are billed as multiples.
- Is unlimited support included? Some firms charge per phone call or email.
- Is the Xero/QuickBooks subscription included or billed back?
- Are VAT returns included? If not, that's typically £100–£300/year extra.
- What's the minimum term? Some firms lock you in for 12 months.
- Is there an onboarding or catch-up fee? If you're switching from a previous bookkeeper or behind on records, expect £200–£800 one-off.
- Who actually does the work? Sometimes the named "qualified bookkeeper" outsources offshore. Ask directly.
In-house bookkeeper vs outsourced — true cost comparison
Once you're at 200+ transactions a month, you'll start wondering whether to hire in-house. The salary is just the start — here's the real loaded cost:
| Cost element | Part-time in-house (~20 hrs/week) | Full-time in-house | Outsourced equivalent |
|---|---|---|---|
| Salary | £12,000 – £18,000 | £25,000 – £32,000 | — |
| Employer NI (15% from Apr 2025) | £1,800 – £2,700 | £3,750 – £4,800 | — |
| Note: the £5,000 Employment Allowance offsets some/all of this for eligible employers | |||
| Pension (3% min) | £300 – £450 | £650 – £800 | — |
| Holiday + sick cover | ~£1,000 | ~£2,000 | — |
| Software / licences | £300 – £500 | £500 – £800 | Usually included |
| Recruitment cost (amortised) | £500 – £1,000/year | £1,000 – £2,500/year | £0 |
| True annual cost | £15,900 – £23,700 | £32,900 – £42,900 | £3,600 – £10,800 |
The maths is hard to argue with for businesses below ~£2m turnover: outsourcing saves £15k–£30k a year and removes single-person-of-failure risk. Above £2m, in-house starts to make sense because you genuinely need same-day responsiveness and the volume justifies a full-time role. For most UK businesses, the right model is outsourced bookkeeping plus an outsourced finance function (FD-level support) when needed — see our outsourced finance function.
Bookkeeper vs accountant — what's the difference and do I need both?
Short answer: a bookkeeper records what happened; an accountant interprets it, files returns to HMRC and Companies House, and advises on tax. You almost always need both functions, but they don't need to come from two different firms.
| Bookkeeper | Accountant | |
|---|---|---|
| Typical UK fee | £100 – £900+VAT/month | £60 – £300+VAT/month (on top, or bundled) |
| Day-to-day data entry & reconciliation | Yes | Sometimes |
| VAT returns | Yes (often add-on) | Yes (often included) |
| Annual accounts to Companies House | No | Yes |
| Corporation Tax return | No | Yes |
| Self-assessment | No | Yes |
| Tax planning & advice | No | Yes |
| Strategic / FD-level input | No | Some firms |
For the full picture on accountant fees, see our complete guide: How much does an accountant cost in the UK? (2026 Complete Guide).
DIY bookkeeping vs hiring a bookkeeper — does it pay?
You can absolutely do your own bookkeeping. Xero or QuickBooks plus a bit of training can take you a long way. The real question is whether your time is better spent on it.
Worked example. A typical small business owner:
- Spends ~5 hours/week on bookkeeping = ~250 hours/year
- Bills clients (or generates profit per hour) at £75/hr
- Opportunity cost of DIY: ~£18,750/year of lost billable time
- Outsourced bookkeeping for the same volume: ~£3,600/year
- Net saving by outsourcing: ~£15,000/year — plus you get cleaner records and faster month-end
The breakeven works out at around £15/hr of your time. If you bill or generate profit at more than that, outsourcing pays. The only exception is the very early-stage business where every pound matters more than every hour — in which case do your own bookkeeping for the first 6–12 months and switch as soon as you can.
Will Making Tax Digital change bookkeeping costs?
Yes — and it's the single biggest reason to professionalise your bookkeeping in 2026. Making Tax Digital for Income Tax (MTD ITSA) goes live from April 2026 for sole traders and landlords with income over £50,000, dropping to £30,000 in April 2027 and £20,000 in April 2028. That means quarterly digital submissions to HMRC instead of one annual self-assessment.
The practical impact: spreadsheet bookkeeping won't cut it any more. You'll need to be on Xero, QuickBooks or another MTD-compliant system, and someone will need to keep it tidy quarterly rather than scrambling once a year. Most outsourced bookkeepers are repricing by £5–£15+VAT per month to absorb the extra quarterly compliance work. We bundle MTD compliance into our existing fixed fees — see our Making Tax Digital service.
How to choose the right bookkeeper
- Check qualifications. Look for AAT, ICB, or ACCA-affiliated. Anyone can call themselves a bookkeeper in the UK — the qualifications matter.
- Check software fluency. Xero-certified is the modern baseline. QuickBooks is fine; Sage is fading.
- Get a fixed-fee quote, not an hourly estimate. Predictability beats theoretical cheapness.
- Ask exactly what's included using the list in the "what's included" section above.
- Check who actually does the work. Some firms outsource offshore — fine if you know about it, less fine if you don't.
- Consider bundling with your accountant. A combined accountancy + bookkeeping firm usually costs less than buying both separately and removes the handover friction at year-end.
For a deeper read on choosing the right firm, see The 5 Best Accountants for Business Owners (And How to Choose the Right One).
How to switch bookkeepers
Switching bookkeepers is genuinely simple — much simpler than business owners assume:
- Sign a letter of engagement with your new bookkeeper or accountancy firm.
- The new firm writes a "professional clearance" letter to the existing one.
- Your existing bookkeeper hands over Xero/QuickBooks access and records (typically 1–2 weeks).
- The new firm takes over from the agreed date.
Switching is normally free from the new firm's side. Some firms charge a small £150–£500 catch-up fee if there's significant clean-up needed; at Gro we don't charge for the standard switch. Check your existing engagement letter for any disengagement clauses.
Frequently asked questions about bookkeeper costs
1. How much does a bookkeeper cost per hour in the UK?
UK bookkeepers typically charge £20 to £50+VAT per hour. Junior or unqualified bookkeepers sit at £20–£30/hr, qualified bookkeepers at £30–£40/hr, and Xero-certified senior bookkeepers at £40–£50/hr.
2. How much does a bookkeeper cost per month?
For a fixed monthly retainer, expect £100 to £300+VAT for a small business with under 200 transactions a month, and £400 to £900+VAT for established limited companies with 200–1,000 transactions.
3. How much does a self-employed bookkeeper cost vs a firm?
Self-employed bookkeepers are often slightly cheaper per hour (£20–£35) but offer no holiday or sick cover. A firm typically charges £30–£50/hr but provides continuity if your bookkeeper is away.
4. Is it cheaper to do my own bookkeeping?
Only if your hourly value is under £15. For most business owners, the time spent on DIY bookkeeping costs more in lost billable hours than outsourcing would. Worked example: 5 hrs/week × £75/hr = £18,750/year DIY cost vs ~£3,600/year outsourced.
5. What does a bookkeeper actually do?
A bookkeeper records all financial transactions, reconciles bank feeds, processes supplier bills and customer invoices, codes everything to the right nominal accounts, runs VAT returns where applicable, and prepares clean records for the accountant to use at year-end.
6. Do I need a bookkeeper if I have an accountant?
Almost always, yes — but they can come from the same firm. The accountant prepares year-end accounts and tax returns; the bookkeeper keeps the books accurate during the year. Without bookkeeping, your accountant has to recreate everything at year-end (which costs more than just paying for bookkeeping).
7. How much does Xero bookkeeping cost on top of the software?
Xero itself is £15–£35/month. Bookkeeping done in Xero by a Xero-certified bookkeeper typically costs £100 to £900+VAT/month on top, depending on transaction volume. Some firms include the Xero subscription; others bill it back.
8. Are bookkeeper fees tax deductible?
Yes — bookkeeping fees are an allowable business expense for sole traders, partnerships and limited companies, reducing your taxable profit.
9. How much does a bookkeeper cost for a small ecommerce business?
Ecommerce businesses (Shopify, Amazon, WooCommerce) typically generate higher transaction volumes than service businesses, so budget £300 to £900+VAT/month depending on order volume. Multi-channel sellers may need specialist support — see our Amazon accountants service.
10. Will Making Tax Digital increase bookkeeper fees?
Slightly — most firms are adding £5–£15+VAT per month for sole traders affected by MTD ITSA from April 2026. Limited company bookkeeping fees are largely unchanged because Xero/QuickBooks already covers compliance.
11. What's the difference between bookkeeping and accounting?
Bookkeeping is the day-to-day recording of transactions; accounting is the interpretation, statutory filing and tax planning that sits on top. Most modern firms (Gro included) provide both as one bundled service.
12. How much does a bookkeeper cost for a startup?
Most startups should budget £100 to £200+VAT/month for basic bookkeeping in year one, scaling up as transaction volume grows. Many firms (Gro included) offer reduced first-year pricing.
13. Are cheap online bookkeepers worth it?
Cheap online bookkeepers (£49–£99/month) typically use template processing with limited human review. Fine for very simple sole traders; risky for VAT-registered businesses or anyone with stock, payroll or multi-currency.
14. How much does payroll cost in addition to bookkeeping?
Director-only payroll typically costs from £18+VAT/month. Full employee payroll is usually £4 to £6 per payslip. CIS returns for construction businesses are an additional £15–£30 per submission. See our payroll service page.
15. What's the cheapest way to handle bookkeeping for a small business?
For a brand-new sole trader, do your own bookkeeping in Xero or a free spreadsheet for the first 6–12 months. Once you're VAT-registered or above £50k turnover (where MTD ITSA bites in 2026), the time and risk of DIY usually outweigh the cost of outsourcing — switch to a fixed-fee bookkeeper or combined accountant-bookkeeper firm.
How to get started with Gro
Just book a free strategy meeting. Tell us your business structure, rough monthly transaction volume, and what software you're on. We'll send you a fully-fixed quote — no surprise add-ons, no per-call charges, year-end and VAT included where relevant.
To summarise
Most UK businesses pay £100–£900+VAT per month for outsourced bookkeeping in 2026, with the right number depending on transaction volume, software, and what's bundled. In-house only makes financial sense above ~£2m turnover. The cheapest headline price is rarely the cheapest total cost once you add VAT returns, year-end charges and your own time chasing missing receipts.
For the bigger picture on what an accountant costs alongside bookkeeping, read our hub article: How much does an accountant cost in the UK? (2026 Complete Guide).
Ready to take action? Book a free strategy session worth £180.
About the author: Stephen Edwards FCCA is the founder of Gro Profit First Accountants, a Fellow of the Association of Chartered Certified Accountants with 25 years' experience, a Certified Profit First Professional certified through Mike Michalowicz's Profit First Professionals programme, and the UK's first Profit First Accountant of the Year (2022). He hosts the Profit First Podcast and works with hundreds of UK business owners every year on pricing, profit and tax. Read Stephen's full profile.