Costs & fees
How much does an accountant cost for a sole trader?
By Kaiser Khan · Updated 13 August 2026
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.
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?
Yes — accountancy fees for preparing your business accounts and tax return are normally an allowable expense for sole traders, so tax relief reduces the real cost. Fees for purely personal tax work may not qualify.
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.
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.