As someone who works with contractors across all sectors, I’ve seen one trend that continues to rise year after year, the growing demand for self-employed bookkeepers. Whether it’s a sole trader needing help with tax returns or a multi-million-pound business looking to tighten up their accounts, bookkeeping contractors have never been more in demand.
But the question I get from new or transitioning bookkeepers is always the same: how much can I actually earn?
Let’s break it down.
Why Bookkeeping Contractors Are in Demand
Running a business today is more complex than ever. With Making Tax Digital, VAT returns, self-assessment deadlines, and IR35 on everyone’s mind, even the smallest companies are turning to professional bookkeepers for clarity and peace of mind.
Many business owners want someone who can not only crunch numbers but explain them, and do so without the big-accountancy-firm price tag. That’s where you, the contractor, come in.
Average Bookkeeper Contractor Salary in the UK
The average bookkeeper contractor salary in 2025 ranges from £28,000 to £55,000, depending on your experience, client base, and whether you work part-time or full-time.
Freelance vs Employed Rates
- Employed Bookkeepers typically earn £24,000 to £35,000 per year depending on location.
- Self-employed contractors on the other hand can charge £20–£40/hour, and sometimes more, especially if they offer additional advisory services or work in high-cost areas like London.
If you’re working 25 billable hours a week at £35/hour, that’s £45,500+ annually, and that’s before you even touch the advisory work or software training add-ons.
Real-World Income Examples From Contractors I Work With
Let me introduce you to a few real-life examples (names changed for privacy):
- “Lisa in Leeds”: Offers monthly bookkeeping and self-assessment filing for tradespeople. Charges £295/month per client. With 18 clients, she clears just over £63,000 a year, working three days a week.
- “James in Bristol”: Started by charging £25/hour, then packaged his services into fixed-price monthly retainers. Now earns over £70,000/year, serving 12 clients and outsourcing payroll.
- “Rachel in Reading”: Added QuickBooks and Xero certifications to her website, began working remotely for London-based startups, and bumped her rate to £50/hour. She now earns more remotely than she ever did on-site.
Key Factors That Influence Your Earning Potential
Experience definitely helps, but it’s not everything. What matters more is how you position your value.
Do you specialise in a niche (e.g. construction, e-commerce, or tech startups)? Do you offer cloud-based tools? Are you using time-saving apps that let you manage more clients with less time?
Software knowledge matters. Being fluent in Xero, QuickBooks, Sage, and receipt processing tools like Dext or Hubdoc can let you charge higher rates, and deliver faster.
How to Set the Right Hourly or Monthly Rate
Start by reverse-engineering your income goals. Want to earn £60k a year working 30 hours a week? You’ll need to charge about £40/hour.
Many bookkeepers now use value-based pricing, charging monthly packages instead of trading hours for pounds. This helps you scale, stabilise your income, and serve clients more efficiently.
Managing Taxes and IR35 as a Bookkeeping Contractor
If you’re self-employed or running a limited company, IR35 and tax planning matter. Make sure you’re calculating your take-home properly. I recommend using tools like our:
They’ll help you estimate real earnings after taxes and deductions.
How to Increase Your Bookkeeper Contractor Salary
Here’s what I advise clients regularly:
- Upskill with certifications (Xero Partner, AAT, CIMA, etc.)
- Offer additional services: cash flow forecasting, budgeting, tax advice.
- Bundle your offerings into tiered monthly packages.
- Position yourself as a virtual finance partner, not just a transactional bookkeeper.
The more proactive your support, the higher your perceived (and actual) value.
Location and Remote Work
One of the best things about bookkeeping? You can do it from anywhere. Many of the contractors I work with live in affordable towns but service clients in London or abroad — earning premium rates without premium living costs.
Tools to Track Income and Profitability
Want to make sure you’re hitting your financial goals? Use our:
These tools help you plan smarter, save for taxes, and even buy a home based on your real income.
FAQs About Bookkeeper Contractor Salary
What is the average salary for bookkeeping contractors?
Most contractors earn between £28,000–£55,000 per year, with top earners exceeding £70,000.
What can senior freelance bookkeepers earn?
With advisory services and automation tools, it’s possible to earn over £80,000 working with 10–15 clients.
Is it better to charge hourly or fixed fee?
Fixed monthly fees are better for cash flow and scale. Clients like knowing what they’re paying too.
How can I price bookkeeping packages?
Base it on transaction volume, hours needed, industry complexity, and software usage.
Can bookkeepers work under IR35?
Yes, though many operate outside IR35 under Ltd. companies. Always double-check your status.
What software should I know to earn more?
Xero, QuickBooks, Dext, Sage, and forecasting tools like Float can boost both your efficiency and rates.