Accountancy fees
Last checked 17 June 2026 · HMRC source
Fees for preparing business accounts and dealing with the tax affairs of the business are normally allowable.
Not the expense you’re looking for?
Search 74 UK business expenses.
Search another expense →Or read the guide: What can I claim as a business expense? →
Conditions
- Fees for work on the business are allowable — preparing the business accounts, bookkeeping, payroll, and the accountancy work behind the self-employed pages of a tax return. HMRC's longstanding practice allows the normal recurring cost of preparing accounts and agreeing the tax liability on trading profits.
- The purely personal side of a Self Assessment return — calculating personal tax, or dealing with personal investment income, capital gains and similar — is not a business cost. Where one bill covers both, only the business portion is allowable, so ask for an itemised invoice.
- For a limited company, fees for the company's accounts and Corporation Tax return are allowable, but fees for a director's personal tax return are a personal cost — if the company pays them, it is a benefit in kind.
- Fees for an HMRC enquiry are allowable only where it results in no adjustment, or an adjustment that does not arise from careless or deliberate error; fees tied to your own carelessness or wrongdoing are not allowable.
Common mistakes
- Claiming the cost of personal tax advice unrelated to the business.
- Including fees for capital or one-off transactions that may need separate treatment.
What to keep
- Invoices from your accountant or bookkeeper.
Real-world example
A limited company pays its accountant to prepare the annual accounts and corporation tax return. These fees are a normal cost of running the company and are allowable.
Frequently asked
Want someone to check this for you?
The Accountancy Partnership offer fixed-fee online accountancy for sole traders and limited companies — your own dedicated UK accountant, with unlimited help by email, phone or video call, and no long-term contract. They’ve been going over 15 years and work with over 15,000 UK businesses.
Readers here get 10% off their first year — sole trader plans start from around £22/month with the discount applied.
Get an instant quote →Worth saying: if your affairs are very simple, you may not need an accountant at all — this is for when you’d rather someone else handled it.
Affiliate disclosure: we may earn a commission if you sign up through this link. It doesn’t affect what you pay — the 10% discount applies either way. Our guidance is written independently.
Related allowances
Source: HMRC guidance