Choosing an accountant
Do I need an accountant as a sole trader?
By Pick My Accountant Editorial · Updated 8 July 2026
When DIY is perfectly fine
If you have one income stream, straightforward expenses, turnover comfortably under the VAT threshold, and you keep records as you go, self-filing is realistic. HMRC's online return walks through most situations, and bookkeeping apps handle the arithmetic. Thousands of sole traders file confidently every January without help.
When an accountant starts paying for itself
The tipping points are usually: VAT registration (quarterly returns and scheme choices), the Construction Industry Scheme, multiple income sources (rental property, dividends, foreign income), hiring subcontractors or staff, or simply earning enough that missed reliefs cost more than fees. From April 2026, Making Tax Digital for Income Tax adds quarterly digital submissions for the self-employed earning over £50,000 — a common trigger for getting help.
A middle path
Many sole traders pay for a one-off self assessment review (roughly £150–£300) rather than a monthly package — you keep the records, the accountant checks the return, claims what you missed, and files it. It's a cheap way to learn what a full service would add.
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.
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.