Choosing an accountant
Do I need an accountant as a sole trader?
By Kaiser Khan · Updated · 2 sources checked
When is DIY fine for a sole trader?
If you have one income stream, straightforward expenses, turnover under the VAT threshold, and you keep records as you go, self-filing is realistic. HMRC's online return is free. Thousands of sole traders file every January without help.
The £1,000 trading allowance means very small side incomes may not need a return at all. Bookkeeping apps handle the arithmetic. You remain responsible for accuracy and the 31 January deadline.
When does a sole trader accountant pay for itself?
Typical packages are £39–£89 a month, or about £150–£300 for a one-off return. The tipping points are VAT registration, CIS, multiple income sources, staff, or MTD for Income Tax from April 2026 if qualifying income is over £50,000.
Accountancy fees are themselves a deductible business expense. From April 2026, quarterly digital submissions are a common trigger for getting help even if last year's return was easy.
Is there a middle path between DIY and a monthly accountant?
Yes — a one-off self assessment review, typically £150–£300. You keep the records; the accountant checks the return, claims what you missed, and files it.
It is a cheap way to learn what a full service would add. Send records by October or November; January rush fees are real and the £100 late-filing penalty is automatic even if you owe nothing.
People also ask
Can an accountant reduce my tax bill?
Legitimately, yes — by claiming allowable expenses you missed (use of home, mileage, capital allowances), choosing the right accounting basis, and timing purchases. They cannot invent deductions, but most self-filers under-claim.
What records do I legally need to keep?
Records of all income and expenses, kept for at least 5 years after the 31 January filing deadline. Digital records will be required under Making Tax Digital as it phases in from April 2026.
Should I become a limited company instead?
It depends on profit level, liability, and admin appetite — the tax advantage of incorporating has narrowed. This is exactly the question worth a one-off session with a qualified accountant.
Sources
- GOV.UK — Self Assessment · checked 2026-07-17
- GOV.UK — Making Tax Digital for Income Tax · checked 2026-07-17
This article is general information for UK businesses, not tax, legal, or financial advice, and thresholds change — confirm current rules on GOV.UK or with a qualified accountant before acting. Fee figures are indicative benchmarks from ourmethodology.