Quick answer: sole trader accounting can range from a relatively modest annual fee for straightforward accounts and Self Assessment to a monthly package where bookkeeping, VAT, MTD and ongoing support are included. Compare the work included, not just the headline price.
What are you actually paying for?
A basic service may cover annual accounts and the business pages of Self Assessment. More comprehensive support can include bookkeeping, VAT, MTD quarterly updates, software and tax planning.
What affects the fee?
- Number and quality of transactions and records.
- Whether you are VAT registered.
- Whether bookkeeping is included.
- Whether MTD for Income Tax applies.
- Complexity of vehicles, equipment, property or other income.
- How much ongoing advice you want.
Annual fee or monthly package?
An annual fee can suit a very simple business with good records. A monthly package can make more sense where work happens throughout the year, especially with VAT or MTD obligations.
Questions to ask
Ask whether the fee includes accounts, Self Assessment, software, bookkeeping, MTD updates, routine advice and HMRC correspondence. A cheap quote can become expensive if every additional task is billed separately.
When does an accountant add value?
The value is not just filing a return. Good records, correct expense treatment, tax planning and avoiding missed obligations can save time and reduce expensive errors.
Frequently asked questions
Can I do my own sole trader tax return?
Yes, many sole traders can. The question is whether the time, complexity and risk make professional support worthwhile for your circumstances.
Will MTD increase accountancy costs?
It can change the amount and timing of work because digital records and quarterly updates are required for those in scope. Good software and processes can keep that efficient.
Are accountancy fees allowable?
Business-related accountancy fees can generally be allowable, although the purely personal cost of preparing and submitting a Self Assessment return is treated differently.