Costs & fees
How much does an accountant cost for a sole trader?
By Kaiser Khan · Updated · 2 sources checked
What does a sole trader accountant package include?
A typical fixed-fee package covers your self assessment tax return, a review of records and allowable expenses, dealing with HMRC on your behalf, and ad-hoc tax questions during the year. Many firms now bundle MTD-compatible software as well. Confirm exactly what is in scope before signing — 'self assessment included' can mean a basic submission or a proper tax review.
A typical fixed-fee package covers your self assessment tax return, a review of your records and allowable expenses, dealing with HMRC on your behalf, and ad-hoc tax questions during the year. Many firms now bundle MTD-compatible software as well. Confirm exactly what is in scope before signing — 'self assessment included' at one firm can mean a basic submission, while another includes a proper tax review.
What pushes a sole trader accountant fee up or down?
Fees rise with turnover, the number of income streams, and whether you are VAT-registered or employ anyone. Rental income, capital gains and foreign income all add work to a return. London and the South East typically charge 10–20% more than regional cities, though online firms serving the whole UK have narrowed the gap.
Fees rise with turnover, the number of income streams, and whether you are VAT-registered or employ anyone. Rental income, capital gains and foreign income all add work to a return. Location matters too — London and the South East typically charge 10–20% more than regional cities, though online firms serving the whole UK have narrowed the gap.
Should a sole trader pay monthly or annually?
An annual-only engagement (£300–£600) suits organised sole traders with simple records who just want the return filed correctly. A monthly package (£39–£89) spreads the cost and adds year-round support — increasingly the better fit now that Making Tax Digital for Income Tax requires quarterly updates from 6 April 2026 for qualifying income over £50,000.
An annual-only engagement (£300–£600) suits organised sole traders with simple records who just want the return filed correctly. A monthly package (£39–£89) spreads the cost and adds year-round support — increasingly the better fit now that Making Tax Digital for Income Tax requires quarterly updates from 6 April 2026 for qualifying income over £50,000. Quarterly submissions are far easier when they are part of a monthly service.
How do you keep a sole trader accountant fee down?
Keep tidy digital records in software your accountant already supports — messy records are the biggest fee-driver. Compare at least three quotes, and do not pay for add-ons you do not need, such as payroll when you have no employees. Because the fees are normally an allowable expense, the after-tax cost is lower than the headline figure.
People also ask
Is a sole trader accountant fee tax-deductible?
Fees for business accounts can be allowable, but HMRC says a sole trader cannot deduct the cost of preparing and submitting a personal Self Assessment return. Ask your accountant to split mixed business and personal work.
Can I just do my own self assessment?
You can — HMRC's online service is free to use. The trade-off is your time, the risk of missing allowable expenses, and penalties for errors or late filing, which start at £100. Many sole traders find an accountant pays for itself.
Do I need an accountant for Making Tax Digital?
Not legally, but from 6 April 2026 sole traders with qualifying income over £50,000 must keep digital records and send quarterly updates using MTD-compatible software. Many people fold that into a monthly accountant package rather than manage it alone.
Sources
- Pick My Accountant fee methodology (editorial benchmarks) · checked 2026-09-23
- HMRC: allowable self-employed accountancy costs and exclusions · checked 2026-09-23
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.