Indian Bookkeeper Pricing Tiers for UK Businesses
Indian CA firms serving UK clients generally offer three pricing models. The right one depends on your transaction volume, whether you need a dedicated person, and how much UK-specific compliance work is involved.
| Engagement Model | Typical Cost | Best For |
|---|---|---|
| Ad hoc / hourly | £8–£15/hr | One-off catch-up work, annual clean-up |
| Monthly retainer — shared team | £150–£400/month | SMEs with <100 transactions/month |
| Part-time dedicated bookkeeper | £300–£800/month | Growing businesses needing 2–3 days/week |
| Full-time dedicated bookkeeper | £800–£1,500/month | Businesses with high volume or complex VAT |
| Dedicated CA (senior level) | £1,200–£2,500/month | Multi-entity, group accounts, HMRC correspondence |
Annual savings at the dedicated full-time level:
Indian full-time dedicated: £1,500/month = £18,000/year
UK in-house bookkeeper: £32,000/year (salary) + £5,000–£8,000 NIC/pension = £37,000–£40,000/year
Annual saving: £19,000–£22,000 — a 52–58% reduction in bookkeeping cost.
Indian full-time dedicated: £1,500/month = £18,000/year
UK in-house bookkeeper: £32,000/year (salary) + £5,000–£8,000 NIC/pension = £37,000–£40,000/year
Annual saving: £19,000–£22,000 — a 52–58% reduction in bookkeeping cost.
Full Cost Comparison: India vs UK Options
| Option | Monthly Cost | Annual Cost | Includes VAT? | Includes Payroll? |
|---|---|---|---|---|
| Indian CA firm — part-time | £300–£800 | £3,600–£9,600 | Yes | Often yes |
| Indian CA firm — full-time | £800–£1,500 | £9,600–£18,000 | Yes | Yes |
| UK freelance bookkeeper | £300–£1,200 | £3,600–£14,400 | Extra charge | Rarely included |
| UK bookkeeping firm | £500–£2,000 | £6,000–£24,000 | Sometimes | Extra charge |
| UK in-house employee | £2,500–£3,500 | £30,000–£42,000+ | Yes | Yes |
Note: UK freelance bookkeeper figures are for scope equivalent to an Indian firm — ie, including VAT return preparation. Most UK freelancers price VAT returns separately at £100–£250 per quarter, which adds £400–£1,000/year to the apparent "lower" monthly rate.
What Is Included in the Monthly Fee
A standard bookkeeping package from a UK-experienced Indian CA firm covers:
- Daily or weekly bank reconciliation
- Sales ledger — raising and coding sales invoices
- Purchase ledger — coding supplier invoices, matching to purchase orders
- VAT return preparation (all UK schemes: standard, flat rate, cash accounting, partial exemption)
- Monthly management accounts — P&L and balance sheet
- Payroll journals and reconciliation
- Fixed asset register maintenance
- Aged debtors and creditors reports
- HMRC correspondence support (queries and documentation)
What is typically not included in the base fee:
- Statutory year-end accounts preparation (Companies House filing) — usually quoted separately
- Corporation Tax return (CT600) — specialist tax work, priced additionally
- RTI payroll processing and FPS submission — sometimes included, sometimes £50–£150/month extra depending on headcount
- Accounting software subscription — Xero, Sage, or QuickBooks Online (your existing subscription or separately billed)
What Drives the Price Up or Down
| Factor | Effect on Price |
|---|---|
| Transaction volume (>300/month) | Moves from shared to dedicated team, pushing toward £800–£1,500 |
| VAT-registered + multiple VAT schemes | Higher-end pricing — partial exemption especially complex |
| RTI payroll (more than 10 employees) | Add £100–£200/month to base fee |
| Multi-entity / group structure | Price per entity or discounted bundle for 3+ entities |
| Year-end accounts included | Adds £500–£1,500/year (or spread monthly) |
| Clean, well-organised books | Lower price — firms charge more for chaotic catch-up work |
| Dedicated named bookkeeper | Higher price than shared pool — but better for continuity |
Additional Costs to Budget For
Beyond the core bookkeeping fee, UK businesses typically need:
- Cloud accounting software: Xero from £15/month (Starter) to £36/month (Standard). Sage Business Cloud from £12/month. QuickBooks Online from £12/month. The Indian team works within your existing subscription — no new license needed if you already have one.
- Document management: Dext (formerly Receipt Bank) from £25/month for scanning and coding receipts. Optional but significantly reduces manual data entry. Many firms include basic document handling without Dext.
- UK GDPR compliance setup: The Data Processing Agreement is provided free by a reputable firm. If you want your own solicitor to review it, budget £200–£500 as a one-off.
- Onboarding: Most firms charge no setup fee. A few charge a one-off £100–£300 for historical data migration and chart of accounts setup. Avoid firms that charge more than this upfront.
When Does Outsourcing to India Make Financial Sense?
The break-even analysis depends on your current arrangement:
| Current Situation | Likely Saving | Breaks Even At |
|---|---|---|
| In-house bookkeeper at £30,000/year | £15,000–£20,000/year | Immediately — Day 1 |
| UK bookkeeping firm at £1,500/month | £800–£1,000/month | Immediately at full-time Indian rate |
| UK freelance at £400/month | Similar cost, more scope | If VAT and payroll are currently extra |
| Owner doing own books (time cost) | 10–15 hours/month freed | If your time is worth >£30/hour |
| No formal bookkeeping yet | Avoids first UK hire at £28,000–£35,000 | Immediately vs first hire |
For very small businesses with fewer than 50 transactions per month, a monthly Indian retainer at £150–£250/month may still be more cost-effective than a UK freelance arrangement that excludes VAT. The VAT return preparation alone costs £100–£250 per quarter from most UK bookkeepers — bringing their effective annual cost to £4,800–£6,000 versus an Indian all-inclusive retainer at £3,000–£4,800.
How to Get an Accurate Quote
When requesting a quote from any Indian bookkeeping firm, provide:
- Average monthly transaction count (bank transactions + invoices)
- Number of employees on payroll (for RTI FPS frequency)
- VAT registration status and which VAT scheme you use
- Current accounting software (Xero, Sage, QuickBooks, or other)
- Whether you need year-end accounts and CT600 included
- Number of bank accounts and credit cards to reconcile
A reputable firm will provide a written proposal itemising exactly what is included. At Sharma Jyoti and Co, all proposals are provided in writing with a fixed monthly fee — no variable charges per transaction or per VAT return.
About This Article
Written by Sharma Jyoti, CA (ICAI) — Founder, Sharma Jyoti and Co. We are an ICAI-registered Chartered Accountant firm providing outsourced bookkeeping and accounting services to Australian, US, UK and Canadian businesses. Our team includes Xero Advisor Certified professionals (Certificate #17207818). Learn more about our firm →
Written by Sharma Jyoti, CA (ICAI) — Founder, Sharma Jyoti and Co. We are an ICAI-registered Chartered Accountant firm providing outsourced bookkeeping and accounting services to Australian, US, UK and Canadian businesses. Our team includes Xero Advisor Certified professionals (Certificate #17207818). Learn more about our firm →
Related Reading
Best Indian accounting firms for UK small businessesICAI, GDPR, Xero, MTD — full selection guide
Can a UK business legally outsource bookkeeping to India?HMRC, UK GDPR, Making Tax Digital
How to outsource VAT returns to IndiaStep-by-step process and MTD submission split
UK HMRC compliance when using an Indian bookkeeperRecords, RTI, VAT coding, what HMRC checks
Frequently Asked Questions
Part-time dedicated: £300–£800/month. Full-time dedicated: £800–£1,500/month. This compares to a UK in-house bookkeeper at £28,000–£45,000 per year in salary plus NIC and pension — a saving of 52–65%. VAT return preparation, bank reconciliation, and monthly management accounts are typically included in the monthly fee.
A standard package includes: bank reconciliation, sales and purchase ledger management, VAT return preparation (quarterly), invoice coding, payroll journals, and monthly management accounts. Payroll RTI processing, year-end statutory accounts, and Corporation Tax returns are sometimes included, sometimes charged separately. Ask for a written proposal that itemises scope explicitly.
The main additional costs: accounting software (Xero from £15/month, Sage from £12/month if you don't already subscribe), document management software (Dext from £25/month if needed), and a one-off onboarding fee if historical data migration is needed (£100–£300 maximum). A reputable firm will itemise all costs in the proposal. Avoid firms that add charges not mentioned upfront.
UK freelancers charge £20–£40/hour or £300–£800/month — the same range as an Indian part-time arrangement. The difference: Indian CA firms include VAT return preparation, whereas most UK freelancers charge £100–£250 per return separately. At the top of the UK freelance range, an Indian full-time dedicated team delivers more scope for the same price.
Outsourcing makes financial sense from approximately 50–100 transactions per month. Below that, a basic UK retainer may be comparable. Above 150–200 transactions/month, or if you need more than 2 days of bookkeeper time per week, the Indian dedicated model saves significantly versus UK options. If you currently have an in-house bookkeeper at £28,000+/year, the saving is immediate regardless of transaction volume.