How Much Does an Accountant Cost for a Sole Trader?

Quick answer

£150–£350/year for Self Assessment filing only. £500–£1,500/year for ongoing bookkeeping and advisory. Most early-stage sole traders earning under £30,000 don’t need one — accounting software (free to £108/year) handles bookkeeping and filing for a fraction of the cost. Consider an accountant when profits pass £40,000 or your tax situation gets complex.

Between £150 and £1,500 per year, depending on what you need done. Here’s a realistic breakdown of what you’re paying for and whether it’s worth it at different income levels. This is part of our accounting software and bookkeeping guide — see also do you actually need an accountant?

Typical costs

These are typical UK rates for sole traders. London and the South East tend to be 20–30% higher. Accountants in smaller towns are generally cheaper.

What affects the price

How organised you are. This is the biggest factor most people don’t realise. If you hand over a year’s worth of neatly categorised accounting software data with bank feeds reconciled, your accountant’s job is quick — check, review, file. If you hand over a folder of mixed receipts and no records, they’re doing data entry at £30–60/hour before they even start the tax return.

Keeping your own books using software reduces accountant fees by 30–50%. This is why we recommend setting up accounting software even if you plan to hire an accountant — it makes their job faster and your bill smaller.

Complexity of your tax affairs. A sole trader with one income stream and standard expenses is simple. Add rental income, foreign income, capital gains, VAT registration, or employee payroll, and each layer adds cost.

Frequency of contact. A “file my return once a year” relationship costs far less than “I want to be able to call you with questions throughout the year.” Some accountants include limited email/phone support in their fixed fee; others charge per interaction.

Qualifications and firm size. A qualified accountant (ACCA, ACA, CIMA) at a small local firm charges less than a partner at a mid-tier firm. For a straightforward sole trader, a qualified individual or small practice is usually the right fit — you don’t need a large firm’s overhead.

What does an accountant actually do?

For a sole trader, an accountant typically:

1. Reviews your income and expense records — checks everything is categorised correctly and that you’re claiming all the expenses you’re entitled to
2. Prepares your Self Assessment tax return — calculates Income Tax, National Insurance, and any payments on account
3. Files the return to HMRC — meets the deadline so you don’t get fined
4. Identifies tax-saving opportunities — pension contributions, capital allowances, timing of expenses
5. Advises on business decisions — whether to go limited, how to handle VAT registration, how to structure things efficiently

Some also handle your Making Tax Digital quarterly submissions and manage any HMRC correspondence on your behalf.

Is it worth it?

Here’s a framework:

Earning under £20,000: Probably not, unless your situation is complex. Use accounting software and file yourself. FreeAgent (free via Mettle) or GoSimpleTax (£41/year) handles everything.

Earning £20,000–£40,000: Optional. Software handles the mechanics. Consider a one-off annual review (£200–£400) where an accountant checks your return before you file — catches mistakes and finds savings you might miss.

Earning £40,000+: Likely worth it. The tax planning opportunities at this level (pension timing, potential limited company switch, NI optimisation) usually save more than the accountant costs. A £500 accountant fee that saves you £2,000 in tax is a good trade.

Any income, complex situation: If you have multiple income sources, overseas clients, property income, or investments alongside your business — get an accountant regardless of income level. The interactions between tax types are where costly mistakes happen.

Accountant vs accounting software: the real cost comparison

The bottom line: For a sole trader earning under £30,000 with straightforward expenses, FreeAgent via Mettle (£0) or QuickBooks Sole Trader Plus (£108/year) does everything a £300–£500 accountant would do at the basic level. The software won’t proactively find tax savings — but at lower income levels, there’s less to optimise anyway.

How to reduce costs

1. Use accounting software and keep your records up to date — this alone cuts fees significantly
2. Keep receipts digitally — scan or photograph them throughout the year, don’t leave it until January
3. Use a business bank account — clean separation means less sorting for the accountant
4. Prepare a summary before your annual meeting — total income, total expenses by category, any questions or unusual items
5. Get a fixed fee quote upfront — avoid hourly billing where possible

Next step

1. Start with software — choose a package and keep your own books for at least the first year
2. File your own first return — it’s simpler than you think. FreeAgent and QuickBooks walk you through it step by step.
3. Reassess at year end — if your profits are growing or things are getting complex, shop around for an accountant. Ask other sole traders in your industry for recommendations.

Last updated: March 2026. Costs are UK estimates and vary by location and complexity.