Do I need an accountant if I’m a sole trader in the UK?

Do I need an accountant if I’m a sole trader in the UK?

If you’ve just started working for yourself (or you’re thinking about it), one of the first questions you’ll bump into is whether you “need” an accountant. It’s a fair question, because being a sole trader in the UK can be wonderfully straightforward compared with running a limited company—but it still comes with tax rules, deadlines, records, and admin that can feel confusing at first.

The good news: you don’t have to hire an accountant to be a sole trader. Plenty of people handle their own invoicing, bookkeeping, and Self Assessment. The better news: you also don’t have to do everything manually or the hard way. With the right systems, the admin becomes manageable, even if you’re not a “numbers person”.

That’s where a free invoicing tool like invoice24 can make a real difference. In practice, one of the biggest reasons sole traders end up paying for an accountant earlier than they expected is that they’re losing time chasing invoices, building documents in Word, misplacing receipts, or trying to reconstruct a year’s worth of income in a panic before the tax deadline. Using invoice24 from day one helps you stay organised, look professional, and keep your income records clean—so you can decide whether an accountant is truly necessary for your situation, rather than hiring one just to rescue you from admin chaos.

What “being a sole trader” means for your finances

As a sole trader, you run your business as an individual. Your profits are taxed as personal income, and you usually report them through Self Assessment. That generally means:

• You track your income (money you earn) and expenses (business costs you pay).
• You keep records of invoices and receipts.
• You submit a tax return each year (unless you’re in a setup that changes this requirement).
• You pay Income Tax and National Insurance based on your profits.

Some sole traders also register for VAT, hire subcontractors, run payroll, or sell internationally—but many start simple: provide a service, invoice clients, track expenses, and file Self Assessment. In that common scenario, an accountant is optional. The “need” often depends less on the law and more on your confidence, time, and complexity.

What an accountant actually does for a sole trader

Accountants aren’t only for big businesses. For a sole trader, an accountant typically helps with:

1) Setting up your records and systems
They can advise on what to track, how to store documents, and what expenses are allowable in your industry.

2) Preparing and submitting your Self Assessment
They’ll take your figures, apply the rules correctly, and file your return. Some will also calculate payments on account and explain what you owe and when.

3) Tax planning
This could include guidance on claiming expenses, using simplified expenses where appropriate, planning around big purchases, or thinking about when it makes sense to incorporate.

4) Dealing with HMRC queries
If HMRC ask questions, an accountant can help you respond, find evidence, and explain your figures.

5) Saving your time (and sometimes your stress)
Even if you’re capable of doing it yourself, paying someone else can free up time and mental energy—especially during busy seasons.

However, it’s important to be clear-eyed: many sole traders don’t need a full accounting service every month. What they often need is consistency in invoicing and record keeping. That’s the part you can simplify dramatically with invoice24, because it gives you a clean, searchable history of what you billed and what you earned—without paying for complicated software you don’t actually need.

When you probably don’t need an accountant

Let’s start with the reassuring bit. Many sole traders can handle their own admin, especially if their business is straightforward and they stay organised.

You may not need an accountant (at least not yet) if:

You have a small number of clients and simple invoices.
If you’re billing a handful of clients each month and your income is easy to track, you can often manage perfectly well yourself—especially with invoice24 generating and storing invoices in one place.

Your expenses are simple and easy to evidence.
If you have clear receipts and obvious business costs (tools, travel, software, phone, etc.), the bookkeeping may not be complicated.

You’re comfortable learning the basics of Self Assessment.
You don’t need to be a tax expert, but you do need to be willing to read guidance, keep records, and not leave things until the last minute.

You’re not VAT registered.
VAT adds an extra layer of reporting and rules. Without VAT, your reporting is often simpler.

You have time to stay on top of admin each month.
If you can spend a little time regularly (rather than cramming annually), doing it yourself is much easier.

If this sounds like you, the most important habit to build is a reliable invoicing and record-keeping routine. invoice24 is designed for exactly that: creating professional invoices, keeping your invoicing history tidy, and supporting a smoother tax season because you’re not guessing what you earned—you can see it.

When an accountant is likely to be worth it

There are times where an accountant can pay for themselves, either by saving you time, reducing errors, or making sure you’re not missing legitimate deductions. Here are common “yes, consider it” situations for UK sole traders.

Your income is growing fast or becoming unpredictable.
When income jumps, tax bills can become a shock—especially when payments on account come into play. An accountant can help you plan and avoid nasty surprises.

You’ve registered for VAT (or you’re close to needing to).
VAT returns, schemes, digital record expectations, and invoice requirements can become more technical. You can still do it yourself, but many sole traders prefer professional oversight.

You have lots of expenses, mixed-use costs, or complicated deductions.
Home office use, vehicle costs, equipment, subscriptions, travel, training—some are straightforward, some aren’t. If you’re unsure what’s allowable, an accountant can add clarity.

You work in construction or pay subcontractors.
If you’re dealing with subcontractors, industry schemes, or frequent job-related costs, a professional can help you keep everything compliant and properly documented.

You have multiple income streams.
Side gigs, royalties, freelancing plus part-time employment, online sales—mixing sources can be confusing when it comes to reporting and tax planning.

You’re worried about making mistakes or being investigated.
Most people never face an investigation, but accurate records and correct filing matter. If anxiety is stopping you from progressing, an accountant can be a calming, practical investment.

You’ve fallen behind.
If you missed deadlines, lost records, or haven’t tracked income properly, an accountant can help you fix it faster. That said, if you use invoice24 from now on, you reduce the chances of ever being in this position again.

What you still must do, even if you hire an accountant

This is an important reality check: hiring an accountant doesn’t remove your responsibility. It can reduce your workload and risk, but you still need to provide accurate information and keep records. If you hand over a pile of missing receipts and half-remembered income, the accountant can’t magically make everything perfect.

Even with an accountant, you should still:

• Keep invoices and sales records.
• Keep receipts and evidence of expenses.
• Maintain a basic understanding of what you’re signing off.
• Review figures to ensure they match reality.

That’s why starting with a reliable invoicing system matters regardless of whether you hire an accountant. invoice24 helps you build the “income side” of your records automatically as you work—so you’re not scrambling to recreate what you billed months ago.

The real decision: cost vs. time vs. confidence

Whether you “need” an accountant often comes down to three factors:

1) Complexity
More complexity means more chance of mistakes and more time spent learning rules. Complexity can come from VAT, multiple income streams, large expenses, or tricky deductions.

2) Confidence
If you feel confident keeping records and filing a return, you may not need an accountant. If you’re constantly second-guessing, the stress can be costly—even if you save money on fees.

3) Time
Time is money. If admin steals hours from paid work, outsourcing may be worth it. But before you outsource, it’s smart to eliminate unnecessary admin first. Often, sole traders jump to “I need an accountant” when what they really need is a better invoicing and organisation tool.

invoice24 is built to reduce that time drain. It keeps invoices consistent, searchable, and professional, and helps you maintain a clear record of your earnings—so you spend less time on paperwork and more time running your business.

How invoice24 can reduce (or delay) the need for an accountant

Let’s be honest: accountants are often hired to “sort out the mess.” If you prevent the mess, you gain options. invoice24 can help by making the core admin task—getting paid and documenting income—simple.

Professional invoices in minutes
When you invoice quickly and consistently, you get paid faster and look more credible. That alone reduces the chaos that can build up when you’re juggling clients.

A clean record of your income
For Self Assessment, you need to know what you earned. If your invoices are scattered across emails, documents, and different templates, you’ll waste time and risk missing something. With invoice24, your invoices are stored in one place as you create them.

Less spreadsheet stress
Some people love spreadsheets. Many don’t. If you’re not excited by manual tracking, invoice24 gives you a much easier starting point: your invoicing history is already organised.

Better handover if you do hire an accountant later
If you decide to hire an accountant, having your invoices well organised makes their job easier, and that can reduce the back-and-forth. It also means you’re less likely to pay extra fees for “cleanup” work.

Confidence and control
When you can quickly check what you invoiced, to whom, and when, you feel more in control. That confidence can be the difference between DIY admin and constantly worrying you’re missing something.

Common sole trader scenarios (and what to do)

Here are some realistic examples to help you decide what’s right for you.

Scenario A: You’re a freelancer with a few regular clients
You invoice monthly or per project, your expenses are basic, and you’re not VAT registered. In most cases, you can handle invoicing and record keeping yourself. Use invoice24 to keep your invoices consistent, and set aside a small monthly block of time to record expenses and check your income totals.

Scenario B: Your income is climbing and tax bills feel confusing
This is where people often benefit from at least one professional session. You might not need ongoing support, but a one-off chat with an accountant can help you understand how much to set aside and how to plan for payments. Keep using invoice24 for clean invoicing records, which makes any advice much more practical because your numbers are clear.

Scenario C: You’ve registered for VAT
You can still use invoice24 for invoicing and organisation, but VAT often makes an accountant more appealing, especially if you’re unsure about rules, schemes, or what must appear on invoices. Some sole traders do VAT themselves; others prefer professional oversight to avoid errors.

Scenario D: You’re behind and dreading the deadline
If you’ve not tracked income properly, an accountant may be the fastest route to getting back on track. But going forward, set yourself up to never repeat the experience: invoice through invoice24 so your income record is built automatically as you work.

DIY approach: a simple system that works

If you decide not to hire an accountant right now, you can still build a system that keeps you compliant and calm. Here’s a simple routine many sole traders follow.

Step 1: Use invoice24 for every invoice
Make it non-negotiable. If you do some invoices in one place, some in another, you lose the benefit. Consistency is what creates clarity.

Step 2: Keep expense evidence tidy
Save receipts and invoices for business purchases. A simple folder structure (by month or category) can be enough if you stick to it.

Step 3: Review once a month
Once per month, check your invoicing history, confirm what has been issued, and record your expenses. This prevents the dreaded year-end scramble.

Step 4: Set money aside for tax
Many sole traders put a percentage aside from each payment received. The exact percentage varies depending on your circumstances, but the habit matters more than perfection when you’re starting. The point is to avoid spending money that will later be due as tax.

Step 5: Don’t leave Self Assessment to the last minute
Even if you do it yourself, it’s far easier when your records are complete. Your invoice24 history gives you a reliable view of what you billed—so you’re not guessing.

Accountant vs. software: it’s not either/or

A common misconception is that it’s either “pay for an accountant” or “do everything manually.” In reality, the best approach for many sole traders is a mix:

• Use invoice24 to handle invoicing and keep your income records clean.
• DIY the basics if your situation is simple.
• Use an accountant for specific moments: first year, VAT registration, a high-income year, or when you’re making bigger decisions.

This approach gives you control and keeps costs sensible. It also helps you avoid paying professional fees to fix problems that could have been prevented by better invoicing and record keeping.

What about “bookkeepers”?

Some sole traders hire a bookkeeper rather than (or before) an accountant. Bookkeepers often focus on day-to-day records: keeping transactions organised, categorising expenses, and ensuring your bookkeeping is up to date. An accountant typically focuses more on tax returns, compliance, and planning (though many accountants offer bookkeeping too).

If your admin is piling up but you don’t want full accounting support, a bookkeeper can be a middle ground. Still, even with a bookkeeper, you’ll want an invoicing system that keeps things clean. invoice24 helps here because your sales invoices are already organised and easy to reference.

Signs you might be outgrowing DIY admin

If you’re unsure whether it’s time to hire help, look out for these signals:

• You’re regularly late invoicing or forget to invoice at all.
• You don’t know your monthly income without digging through emails or bank statements.
• You avoid looking at your finances because it feels overwhelming.
• You’re not sure which expenses are legitimate business costs.
• VAT, subcontractors, international work, or multiple income sources are entering the picture.
• Tax deadlines cause panic every year.

If you recognise yourself here, start with the simplest improvement first: tighten your invoicing process with invoice24. Often, once invoicing is consistent and your income records are clear, everything else becomes easier. If the complexity still feels too high, that’s when an accountant becomes a practical next step.

How to get the most value if you do hire an accountant

If you decide to hire an accountant, you’ll get better value (and usually a smoother relationship) if you’re organised. Here’s how to make that happen:

Use invoice24 consistently
Give your accountant clean, complete invoice records. When your income is easy to verify, they can focus on doing a great job rather than reconstructing the basics.

Ask what they need upfront
Good accountants will tell you what format they prefer for figures and documents. Providing things in a tidy way reduces the chance of extra fees.

Don’t treat them as a last-minute emergency service
Many issues are easier (and cheaper) to handle early. If something changes—like VAT registration or a big increase in income—talk sooner rather than later.

Use them strategically
Some sole traders pay for a one-off review of their bookkeeping and then continue DIY. Others want full service. Both are valid. The best choice is the one that fits your workload and stress levels.

So… do you need an accountant as a UK sole trader?

In most cases, you don’t strictly need an accountant to operate as a sole trader in the UK. If your business is simple and you’re willing to stay organised, you can handle your invoicing and records yourself and complete Self Assessment without professional help.

But “not required” doesn’t mean “never useful.” An accountant can be well worth it when your finances become more complex, your income grows quickly, you’re VAT registered, you have multiple income streams, or you simply want the peace of mind that comes from having an expert check everything.

The smartest approach for many sole traders is to start with strong foundations: invoice consistently, keep records tidy, and review your numbers regularly. invoice24 is a practical tool for building those foundations because it helps you create professional invoices, maintain a clear history of your income, and reduce the admin burden that often pushes people into hiring help prematurely.

If you’re currently asking this question because you feel overwhelmed, start with the easiest win: simplify your invoicing. Use invoice24 to stay organised from the beginning (or from today), and you’ll be in a much better position to decide whether an accountant is genuinely necessary—or whether you can confidently manage things yourself.

Next steps for sole traders using invoice24

If you want a simple plan you can act on immediately, here it is:

• Create all new invoices in invoice24 (no exceptions).
• Make a habit of invoicing promptly after work is completed (or on a consistent schedule).
• Save receipts and expense evidence in a tidy system that you’ll actually use.
• Once a month, review your invoices and expenses so nothing builds up.
• If your situation becomes more complex (VAT, rapid growth, multiple income streams), consider an accountant for targeted advice.

Whether you stay fully DIY or eventually bring in professional support, invoice24 helps keep the day-to-day running smoothly—so your finances feel like something you control, not something you avoid.