Sole Trader Accountancy

What does a sole trader accountant do?

They keep (or review) your books, claim allowable expenses, and file your Self Assessment. From April 2026 they should also handle quarterly MTD updates if you are in the first Income Tax cohort. They do not run a limited company for you — that is a different package.

A cheap annual return is enough if you have one simple income stream and tidy records. Monthly support pays when you have VAT, mixed income, or no appetite for January. Ask which MTD-recognised software they use before you sign.

Do sole traders need an accountant?

You are not legally required to hire one. Hire one if you want someone else to file Self Assessment, claim expenses properly, and keep you MTD-ready. Skip a monthly fee if you have one simple return and will file on time yourself.

MTD for Income Tax is mandatory from 6 April 2026 for sole traders and landlords with qualifying income over £50,000, then over £30,000 from April 2027 and over £20,000 from April 2028. If that applies to you and you will not keep digital records, a cheap monthly package is usually cheaper than penalties.

How much does a sole trader accountant cost?

Basic packages start from about £39 per month, or £300–£600 a year for annual Self Assessment and light bookkeeping, on our editorial benchmarks. VAT and extra income streams push the fee up. Confirm the current quote with the firm.

Online firms often sit at the low end. Local practices may charge more for meetings. Compare three written quotes on the same scope before you assume the first number is the market. Software is sometimes included — name the product.

What should a sole trader package include?

At minimum: bookkeeping or a year-end review, the SA100, and submission to HMRC. VAT, payroll (if you have staff), and MTD quarterly updates should be named as in or extra. A package that only files in January may not be enough once MTD starts.

Payments on account catch first-time filers. Ask whether the quote includes those calculations and HMRC correspondence. If you also have a rental property, that is extra pages — not a free add-on.

• Usually in: Self Assessment, basic books, deadline reminders
• Often extra: VAT, payroll, rental income, CGT, MTD quarterly work

When does MTD apply to sole traders?

MTD for Income Tax starts at £50,000 qualifying income from 6 April 2026, then £30,000 in 2027 and £20,000 in 2028. MTD for VAT is already live if you are VAT-registered. Spreadsheets alone will not comply unless bridging software links them to HMRC.

Qualifying income is not the same as profit. Confirm the current definition on GOV.UK before you decide you are out of scope. An accountant who cannot name their MTD software is not ready.

Should I stay a sole trader or incorporate?

Stay a sole trader while the extra Companies House and corporation-tax admin would cost more than the tax saving. Incorporate when liability protection or the tax maths on your profit actually change the answer. Model both with an accountant — do not copy a forum threshold.

A limited company is a different product: accounts, CT600, confirmation statement, and possibly a director's Self Assessment if their own income requires one. If you have already incorporated, use the limited-company page, not this one.

How should I choose a sole trader accountant?

Check ICAEW, ACCA, AAT or ICAS, then compare written fees that name Self Assessment, software and MTD. Skip anyone who will not put the scope in a letter. Three quotes on the same list of services is enough.

Online is fine if you will share records digitally. Local wins if you want meetings. Verify the firm on the public register — the word accountant is not protected.

1. Confirm they file Self Assessment and use MTD-recognised software
2. Ask whether VAT and MTD quarterly updates are in the monthly fee
3. Compare three quotes, then authorise the winner as your HMRC agent