The short answer
Most small businesses in Medway need an accountant once a year and a bookkeeper all year round. An accountant prepares your year-end accounts and tax returns and gives tax advice. A bookkeeper keeps your records accurate every week, runs payroll and files VAT and Making Tax Digital updates. In the UK a sole trader typically pays £150 to £350 for a Self Assessment return, and a small limited company usually pays £500 to £1,500 for year-end accounts and a corporation tax return. If you are VAT registered, employ staff or have lots of transactions, pairing a bookkeeper with an accountant is usually the most reliable setup.
If you have been searching for “accountants in Medway” because your paperwork is piling up, this guide will help you work out who you actually need, what each costs and how to choose well.
What is the difference between an accountant and a bookkeeper?
Think of it as recording versus reporting.
- A bookkeeper records and checks the day-to-day money: reconciling the bank, coding income and expenses, entering bills, chasing invoices, running payroll and submitting VAT returns. The work happens weekly or monthly.
- An accountant uses those records to prepare statutory accounts, corporation tax and Self Assessment returns, and to advise on tax planning, such as how much salary and dividend a director should take. The work is mostly annual, plus advice when you need it.
There is overlap. Some accountancy firms offer bookkeeping, and some bookkeepers handle simple tax returns. The point is not the job title. It is making sure every task is covered by someone qualified to do it. We go into the detail in our guide to bookkeeper vs accountant for small businesses.
Do I need an accountant, a bookkeeper or both?
Here is a quick way to decide. Be honest about how much time you spend on admin now.
| Your situation | What you probably need |
|---|---|
| Sole trader, not VAT registered, under £50,000 qualifying income, a few transactions a week | An accountant for your Self Assessment return. You can usually keep your own records. |
| Sole trader or landlord with qualifying income over £50,000 (now in Making Tax Digital for Income Tax) | A bookkeeper for digital records and quarterly updates, plus an accountant for the final return, or one firm that does both. |
| Limited company, director only, low volume | An accountant for year-end accounts and tax. Light bookkeeping help if you fall behind. |
| Limited company, VAT registered, with staff | Both. A bookkeeper for weekly records, VAT and payroll. An accountant for accounts, corporation tax and planning. |
| Hospitality, construction or retail with high transaction volumes | Both, ideally with sector knowledge (tips, CIS, stock). |
How much do accountants in Medway charge?
Fees vary by firm and complexity, but quotes in Medway generally sit within these UK ranges. Always check exactly what is included.
| Service | Typical UK cost (2026) |
|---|---|
| Self Assessment tax return only (sole trader) | £150 to £350 a year |
| Limited company year-end accounts and CT600 | £500 to £1,500 a year (plus VAT) |
| Complex company or bookkeeping backlog to fix first | £1,500 to £3,500+ |
| Monthly accountancy package for a limited company | Roughly £80 to £250 a month |
Source: UK accountant fee surveys published in 2026, including Acobloom and myPOS. Treat these as ranges, not quotes.
The line that catches people out is “bookkeeping backlog”. If your accountant receives a carrier bag of receipts or a Xero file with hundreds of unreconciled transactions, they will charge to fix it, usually at accountancy rates. That is often the most expensive way to get your bookkeeping done.
And what does a bookkeeper cost?
UK bookkeepers typically charge £25 to £50 an hour, or a fixed monthly fee. Most small businesses we work with in Medway pay somewhere between £150 and £400 a month, depending on transaction volume, VAT and payroll. Our guide to choosing a bookkeeping firm in Kent explains what should be included for that money.
Which setup costs less overall?
Honestly, it depends on how tidy your records are. Here are the three most common setups we see in Rochester, Chatham, Gillingham and Strood, with illustrative annual costs.
| Setup | Who does what | Illustrative annual cost | Works best for |
|---|---|---|---|
| DIY records + accountant at year end | You keep Xero or spreadsheets. Accountant does accounts and tax. | £150 to £1,500, plus your time, plus any clean-up fees | Low volume, organised owners who enjoy admin |
| Accountant does everything | One firm handles records, accounts and tax | £1,000 to £3,000+ | Simple limited companies with little VAT or payroll |
| Bookkeeper monthly + accountant at year end | Bookkeeper keeps records, VAT, payroll and MTD. Accountant does accounts, tax and advice. | Bookkeeping £1,800 to £4,800 + accounts £500 to £1,500 | VAT-registered businesses, employers and anyone who wants weekly attention and a local person to call |
The third option is not always the cheapest on paper. Where it pays for itself is in what does not happen: no year-end clean-up bill, no missed VAT deadline, no surprise director’s loan tax charge. If you take money out of your company, our director’s loan calculator shows how quickly a Section 455 charge can build up when nobody is watching the balance.
Key deadlines for Medway businesses this autumn and winter
If you are looking for an accountant right now, these dates are probably why. Leave enough time for whoever you appoint to do the job properly.
| Date | What is due | Who it affects |
|---|---|---|
| 31 October 2026 | Paper Self Assessment return for 2025/26 | Anyone still filing on paper |
| 7 November 2026 | Second MTD for Income Tax quarterly update (6 July to 5 October) | Sole traders and landlords with qualifying income over £50,000 |
| 31 January 2027 | Online Self Assessment return and tax payment for 2025/26 | Sole traders, partners, landlords, many directors |
| 9 months after your year end | Company accounts to Companies House, and corporation tax payment (9 months and 1 day) | Limited companies |
| 12 months after your year end | Corporation tax return (CT600) | Limited companies |
Sources: GOV.UK Making Tax Digital quarterly updates, GOV.UK Self Assessment deadlines and GOV.UK company annual accounts. For more on the new quarterly rules, see our guide to Making Tax Digital for sole traders in Kent.
How do I choose a good accountant in Medway?
Here is something many business owners do not realise: “accountant” is not a protected title in the UK. Anyone can use it. “Chartered Accountant” and “Chartered Certified Accountant” are protected and can only be used by members of bodies such as ICAEW and ACCA. So before you sign up, check these six things.
- Qualifications you can verify. Look the firm up in the ICAEW directory or ACCA’s Find an Accountant. AAT licensed accountants are also a good option for smaller businesses.
- Anti-money laundering supervision. Every UK accountancy and bookkeeping practice must be supervised by HMRC or a professional body. Ask who supervises them.
- Professional indemnity insurance. If they make an expensive mistake, you need to know it is covered.
- A fixed fee with a clear scope. Ask what is included, what counts as “extra” and how they charge for messy records.
- Software and MTD readiness. If you use Xero, choose a firm that works in Xero and can file under Making Tax Digital.
- Will they work with your bookkeeper? The best results come when your accountant and bookkeeper talk to each other. A good accountant will welcome clean, reconciled records.
Why many Medway businesses start with a bookkeeper
A lot of the calls we get begin with “I think I need an accountant”. After a ten-minute chat, it often turns out the real problem is that nobody has reconciled the bank since spring, the VAT return is due and the owner is doing payroll at midnight. That is bookkeeping, and it is usually cheaper to fix with a bookkeeper than with year-end accountancy hours.
At Acey Bookkeeping we are a mother and daughter team based on the Hoo Peninsula, near Rochester, with more than 40 years of combined experience. We are certified Xero advisors and members of the Institute of Certified Bookkeepers. We look after sole traders, limited companies and growing teams across Medway, from bookkeeping in Rochester to Chatham and Gillingham.
We do not prepare statutory accounts ourselves. Instead, we keep your books, VAT, payroll and MTD submissions accurate all year, then hand clean Xero data to your accountant, whoever you choose. That usually means a smaller year-end bill and far fewer questions in January.
Our bookkeeping services in Medway and Kent include bank reconciliation, purchase and sales invoices, credit control, payroll and pensions, VAT returns under Making Tax Digital and monthly management reports.
Not sure whether you need an accountant, a bookkeeper or both? Book a free, no-obligation chat with Acey Bookkeeping. We will look at where your records are today and tell you honestly what you need, even if the answer is “just an accountant”.
Frequently asked questions
How much does an accountant cost for a small business in Medway?
Most sole traders pay £150 to £350 a year for a Self Assessment return. Small limited companies usually pay £500 to £1,500 a year for year-end accounts and a corporation tax return, or roughly £80 to £250 a month for an ongoing package. Messy records or a backlog will push the fee up.
Do I need an accountant if I have a bookkeeper?
Usually yes, if you run a limited company or need tax advice. A bookkeeper keeps your records accurate through the year. An accountant uses those records to prepare statutory accounts and tax returns. Some sole traders with simple affairs manage with a bookkeeper and file their own return.
Is a bookkeeper cheaper than an accountant?
Per hour, usually yes. UK bookkeepers typically charge £25 to £50 an hour. Using a bookkeeper for the day-to-day work and an accountant only for year end often reduces the accountant’s fee, because they are not paid to tidy up records first.
Can anyone call themselves an accountant in the UK?
Yes. “Accountant” is not a protected title. “Chartered Accountant” and “Chartered Certified Accountant” are protected and only members of bodies such as ICAEW and ACCA can use them. Always check qualifications, anti-money laundering supervision and insurance.
When should I hire an accountant for my small business?
When you set up a limited company, register for VAT, take on staff or enter Making Tax Digital for Income Tax. Ideally appoint one well before your first deadline, not in January.
Can a bookkeeper do my VAT and MTD submissions?
Yes. With your authorisation, a bookkeeper can submit VAT returns and MTD for Income Tax quarterly updates through software such as Xero. You remain legally responsible for the figures, so a good bookkeeper will share them with you before filing.
