How much does an accountant cost for a sole trader in the UK?

Understanding what you’re really paying for

If you’re a sole trader in the UK, “How much does an accountant cost?” can feel like a simple pricing question. In reality, the answer depends on what you need, how organised you are, how complex your business is, and what kind of support you want. Some sole traders only need an accountant once a year to prepare and submit a Self Assessment tax return. Others want ongoing bookkeeping, payroll help, VAT advice, business planning, and a reliable person to call when a letter from HMRC lands on the doormat.

This article breaks down typical accountant costs for UK sole traders, what influences the price, what’s usually included, what’s often extra, and how to choose a good-value option without underbuying or overpaying. It also explains common pricing models, gives realistic ranges, and offers practical tips to keep fees down while still getting the support you need.

Typical accountant cost ranges for UK sole traders

Accountant fees for sole traders vary widely because “accountant” can mean anything from a one-off tax return service to a full finance function. As a broad guide, many sole traders will see pricing fall into one of these bands:

Basic annual service (tax return only): often in the region of £150 to £500 per year for straightforward cases. This may include preparing and filing the Self Assessment return and a basic set of computations from your income and expense totals.

Annual accounts + tax return (more complete package): often around £300 to £1,000 per year depending on complexity. For a sole trader, “accounts” usually means a profit and loss summary and sometimes a simple balance sheet-style statement, along with the tax return.

Monthly packages (accounting support year-round): commonly £25 to £150+ per month, which is roughly £300 to £1,800+ per year. Packages may include software, quarterly check-ins, bookkeeping reviews, and tax planning touchpoints.

Higher complexity or specialist needs: £1,000 to £3,000+ per year when you add VAT, payroll, multiple income streams, property income, CIS subcontracting, significant expenses, complex capital allowances, or frequent advisory support.

These ranges are not rules; they’re signposts. A very simple “side hustle” with minimal transactions can land at the lower end, while a busy tradesperson with VAT, CIS, a van, tools, subcontractor costs, and multiple job sites can end up at the higher end. The key is to match the service to your business reality and your appetite for doing finance admin yourself.

Why sole trader accountant fees vary so much

Two sole traders can have the same turnover yet pay very different accountant fees. That’s because the work isn’t priced only on how much you earn. It’s priced on the time, skill, and risk the accountant takes on, plus how much “mess” they have to untangle. Here are the main drivers:

1) How organised your records are

Accountants charge more when records are incomplete, inconsistent, or delivered in a form that takes time to interpret. If your expenses are a shoebox of receipts, your income is spread across multiple bank accounts, and you can’t easily explain what a payment relates to, the accountant must spend time reconstructing your books before they can calculate your profit. That time is billable.

On the other hand, if you use accounting software or even a tidy spreadsheet, reconcile your bank statements, keep clear notes, and store receipts in a logical way, the accountant can do the same job much faster, which often means a lower fee.

2) Number of transactions

A sole trader with 30 invoices a year and a handful of expenses is different from a sole trader with 3,000 card payments, regular supplier bills, mileage claims, and multiple payment platforms. Accountants may price based on transaction volume because it correlates strongly with time required for bookkeeping and review. Even if the accountant isn’t doing your bookkeeping, they may need to check your totals and ask follow-up questions.

3) Whether you’re VAT registered

VAT adds recurring compliance and the need for accurate VAT treatment. Even with software and Making Tax Digital (MTD) tools, VAT returns still require review and sometimes adjustments for partial exemption, capital goods, reverse charge, or mixed supplies. If you need VAT registration advice, scheme selection (flat rate vs standard, for example), and ongoing VAT returns, that increases the fee.

4) Payroll and employment matters

Many sole traders don’t run payroll because they have no employees. But if you employ staff, you’ll likely need payroll processing, RTI submissions, payslips, pension auto-enrolment administration, and end-of-year forms. Payroll can be priced per employee per month or as part of a package.

5) Construction Industry Scheme (CIS)

CIS can complicate record keeping and tax calculations. If you’re a subcontractor with CIS deductions taken by contractors, the accountant must track those deductions accurately so you get the right credit against your tax bill. If you’re a contractor paying subcontractors, CIS monthly returns are an extra compliance task. Either way, CIS often moves you into a higher-cost service bracket.

6) Multiple income streams and personal tax complexity

A sole trader’s Self Assessment can include more than business profits. If you have property income, dividends, capital gains, student loan repayments, pension contributions, high income child benefit charge, or overseas income, the return is more complex and the accountant assumes more risk. That usually affects the fee.

7) Level of advice you want

Some sole traders want compliance only: “Do my return and tell me what I owe.” Others want tax planning, help with budgeting, pricing, cash flow, and decisions like whether to remain a sole trader or incorporate a limited company. Advisory time is valuable and is priced accordingly. If you want proactive support, expect higher fees than a basic filing service.

Common pricing models: fixed fee, monthly subscription, hourly rates

Accountants price their work in different ways, and understanding the pricing model helps you compare quotes properly. For sole traders, the most common approaches are fixed annual fees and monthly packages.

Fixed annual fee

This is usually a set price for a defined service, such as preparing annual accounts and submitting your Self Assessment return. It’s popular because it’s predictable. The fee typically assumes your records meet certain standards. If you turn up late, provide messy records, or add extra requirements (like a VAT registration mid-year), the accountant may charge additional fees.

Monthly subscription packages

Many modern firms offer packages that spread the cost across the year. A monthly fee might include software subscriptions, quarterly or monthly check-ins, access to advice, and end-of-year accounts and tax return preparation. For some sole traders, this feels easier to budget and encourages better ongoing record keeping.

The important thing is to see exactly what “support” includes. Some packages promise “unlimited advice” but apply fair-use limits or restrict advice to certain topics. Others include bookkeeping reviews but not bookkeeping itself. Always look at the scope.

Hourly rates

Hourly billing is more common for ad hoc services such as dealing with a specific HMRC query, helping with a complex capital gains calculation, reconstructing records, or providing consultancy. Hourly rates can vary widely depending on region, seniority, and specialism. Hourly billing can be cost-effective if you only need limited help, but it can also create uncertainty if the scope isn’t tightly defined.

One-off “tax return service” pricing

Some providers advertise low-cost tax return preparation as a one-off service, often aimed at straightforward cases. These can be good value if your situation really is simple and you’re comfortable not having ongoing support. However, you should check what happens if your case is more complex than expected and whether you can speak to a qualified person if you have questions.

What an accountant typically does for a sole trader

To judge whether an accountant’s quote is fair, it helps to understand what the work actually involves. A typical “annual accounts and tax return” service for a sole trader might include:

Reviewing your income and expenses to ensure they’re categorised correctly and that obvious issues are addressed.

Preparing a profit and loss figure (and supporting working papers) from your records.

Applying allowable expenses rules such as simplified expenses, mileage rates, use of home as office, capital allowances for equipment, and disallowable personal elements.

Calculating your taxable profit and any adjustments needed for tax purposes.

Preparing and submitting your Self Assessment tax return to HMRC, including the self-employment pages.

Advising on payments on account and what you need to set aside for future tax bills.

Basic guidance on record keeping for the next year and how to avoid common errors.

In higher-tier services, you may also get proactive tax planning, periodic profit estimates, reminders, VAT services, and help responding to HMRC. That’s when fees climb, but so can the value you receive.

What’s usually not included (and can increase the price)

Many sole traders assume everything is included, then get surprised by add-ons. Common extras include:

Bookkeeping: entering transactions, categorising expenses, reconciling bank accounts, and tidying records. Some accountants include bookkeeping reviews but not full bookkeeping.

VAT registration and VAT returns: including advice on the best VAT scheme and filing quarterly returns.

Payroll: payslips, RTI submissions, pension administration, and year-end forms.

CIS returns: monthly submissions for contractors, or more detailed tracking for subcontractors.

Dealing with HMRC enquiries: responding to letters, providing evidence, negotiating time to pay, or representing you during an investigation.

Tax planning sessions: whether as one-off consultations or ongoing strategic support.

Catch-up work: if you’ve fallen behind and need multiple years sorted or need records reconstructed.

Company formation advice: if you’re considering incorporating and want comparisons and projections.

When comparing quotes, ask what is included and what triggers extra charges. The cheapest quote can become expensive if it excludes the services you actually need.

Realistic examples of what a sole trader might pay

It can help to think in scenarios. Here are some realistic patterns, using broad ranges rather than exact quotes.

Scenario A: New side business, very simple

You do freelance work on evenings and weekends. You have one bank account, a small number of invoices, and minimal expenses. You keep a simple spreadsheet and save receipts digitally.

In this case, you might pay something like £150 to £400 for a tax return service, or £300 to £600 for an annual package that includes a bit more review and support. If you only need compliance and your records are tidy, you’re likely at the lower end.

Scenario B: Full-time sole trader with moderate volume

You run a service business with regular invoices, travel costs, software subscriptions, and a vehicle. You’re not VAT registered, but you have consistent monthly activity.

This is where monthly packages can make sense: perhaps £40 to £100 per month depending on the level of support. Annual-only fees may still be viable, perhaps £500 to £1,000, especially if your bookkeeping needs tidying at year end.

Scenario C: VAT registered sole trader

You’ve crossed the VAT threshold or chose to register voluntarily. You file VAT returns quarterly and want confidence you’re doing it right.

Expect fees to increase, commonly into the £800 to £1,800+ per year range depending on transaction volume and whether the accountant handles the VAT returns or just reviews them.

Scenario D: Tradesperson with CIS and lots of receipts

You work in construction, have CIS deductions, buy materials, tools, and travel often. You may have cash expenses and a high volume of small transactions.

Fees can be higher because accurate records matter and CIS adds additional checks. It’s common to see totals in the £1,000 to £2,500+ range per year depending on how much bookkeeping the accountant is doing and how clean your records are.

Scenario E: You’re behind and need catch-up work

You’ve missed deadlines, have multiple years to submit, or your records are incomplete.

Catch-up work can be priced as a one-off project. Costs vary widely because time varies widely. If you’re behind, the best value is usually to fix record keeping first (even partially) before handing everything over.

Choosing between a local accountant and an online firm

Sole traders today can pick from traditional local practices, online accountancy firms, and hybrid models. Price isn’t the only difference, but it’s a factor.

Local accountant

A local accountant may offer face-to-face meetings, a relationship built over time, and deeper familiarity with your circumstances. Some sole traders value being able to sit down with someone and ask questions. Local firms may be slightly higher priced in some areas, but not always. Their value often comes from experience, responsiveness, and the ability to spot issues early.

Online accountant

Online firms can offer competitive pricing, slick onboarding, and app-based workflows. They may bundle software and provide structured processes that make compliance easier. This can be excellent value if you’re comfortable with digital record keeping and don’t need in-person meetings.

However, service quality can vary. Some online providers are brilliant and proactive; others are more transactional. If you want personalised advice or have a complex situation, look for evidence that you’ll have access to a qualified accountant who knows your case, not just a general support queue.

Hybrid approach

Some firms offer the best of both: digital tools with access to a dedicated accountant. These tend to land in the middle-to-upper pricing range but can be a strong fit for sole traders who want convenience without losing the human element.

What “good value” really means for sole traders

The cheapest accountant is not always the most cost-effective. Good value usually means:

You meet deadlines without stress. Late filing penalties and rushed decisions can cost more than the fee difference between accountants.

You claim what you’re entitled to. A careful accountant can help you understand allowable expenses, simplified expenses, mileage, capital allowances, and how to document claims properly.

You avoid preventable mistakes. Errors can lead to incorrect tax bills, HMRC queries, or missed opportunities.

You can make better decisions. If your accountant helps you understand your profit, cash flow, and pricing, the business benefit can exceed the fee.

You get support when something changes. VAT thresholds, new contracts, buying equipment, or taking on staff can all affect your tax position.

How to keep accountant costs down (without cutting corners)

Many sole traders can reduce fees significantly by doing a few habits well. Here are practical ways to keep costs down while keeping the service useful.

Keep business and personal finances separate

Using a separate business bank account makes everything easier: tracking income, proving expenses, and reconciling transactions. Even if it’s not legally required for a sole trader, it’s one of the best cost-saving moves you can make because it reduces ambiguity and time spent sorting through personal spending.

Digitise receipts and keep notes

Whether you use an app, cloud storage, or a simple folder system, store receipts consistently. Add short notes when a transaction isn’t self-explanatory. For example, “Client lunch – project kickoff” or “Tools for job at X.” Clear notes reduce accountant questions and reduce billable time.

Reconcile monthly (or at least quarterly)

If you leave everything until January, you’ll forget what things were, lose receipts, and create a scramble that costs money. Regular reconciliation means errors are caught early and the year-end workload is lighter.

Use accounting software if it suits you

Software can reduce the time accountants spend processing data and can make collaboration smoother. Many monthly packages include software access. However, software only saves money if you use it reasonably well. If software becomes another place where transactions are miscategorised and unreconciled, it can increase clean-up time.

Ask for a clear scope and avoid “surprise work”

A good engagement letter or proposal should specify what’s included. If you know you’re likely to need VAT registration, payroll, or help with HMRC letters, mention it early so the quote matches reality.

Be honest about what you don’t understand

Trying to guess your way through bookkeeping can create bigger problems later. If you’re unsure how to categorise something, ask early. A short question now can prevent hours of correction later.

When paying more can be worth it

There are situations where paying a higher fee is rational. Consider investing in more support if:

You’re approaching or crossing VAT thresholds. Getting the timing and scheme selection right matters.

You have irregular income and need cash flow planning. Payments on account and seasonal revenue can create nasty surprises.

You’re making major purchases. Vehicles, equipment, and computers can have tax implications.

You’re working with contractors or subcontractors. CIS compliance can be unforgiving.

You suspect you’ve made mistakes in past returns. Fixing issues proactively is usually easier than waiting for an HMRC query.

You’re considering incorporation. The decision is not just about tax; it affects admin, liability, and how you take money out of the business.

In these moments, an accountant’s value is not in filling out forms but in helping you make decisions with fewer blind spots.

Questions to ask before hiring an accountant

To compare options properly, you can ask questions that reveal both price and quality. Useful questions include:

What does your fee include for a sole trader like me? Ask for a list of deliverables, not just a general promise.

Do you include bookkeeping, or only year-end accounts and a tax return? If bookkeeping is not included, ask what format they want your records in.

What happens if I need help during the year? Clarify whether advice is included, capped, or billed separately.

How do you handle VAT, payroll, or CIS if I need it later? Even if you don’t need these today, it’s useful to understand future pricing.

Who will I speak to? Will you have a named accountant, a team, or a rotating support desk?

What is your turnaround time? Especially close to deadlines. Slow response can create stress and risk.

How do you help me stay compliant with deadlines? Reminders, checklists, and proactive contact are often worth money.

Can you support me if HMRC asks questions? Some firms offer representation or guidance; others will charge separately.

Do you work with businesses like mine? Industry familiarity can reduce errors and improve advice.

Red flags that can cost you more later

Sometimes the risk isn’t paying too much; it’s paying too little for a service that doesn’t protect you. Watch out for:

Vague quotes with unclear scope. If it’s not clear what you’re paying for, you can’t compare properly.

No interest in your business details. A good accountant will ask basic questions to price and serve you correctly.

Overpromising “everything included” with no limits. This can be fine if genuine, but often hides restrictions.

Poor communication. If they’re slow to respond before you’ve paid, they may be slow afterwards too.

Encouraging aggressive claims without explaining evidence. Claiming expenses is legitimate, but you should understand what is allowable and how to support it.

Do you need an accountant as a sole trader?

Many sole traders are legally allowed to handle their own bookkeeping and file their own tax return. So the question becomes: do you need an accountant, or do you want one? There’s no universal answer, but you can think in terms of time, confidence, and risk.

If your business is simple and you’re comfortable with numbers, you might file your own return and only pay for occasional advice. If you find admin stressful, fear getting it wrong, or have a growing business with more complexity, an accountant can be a strong investment.

Also consider opportunity cost. If spending ten hours on bookkeeping saves you £300 in fees but those ten hours could be spent earning £1,000, the “cheaper” path might not be cheaper at all. Many sole traders eventually hire an accountant not because they can’t do it, but because they’d rather put that energy into work that grows revenue.

How to decide what level of service you need

A helpful way to choose is to pick a service level that matches your situation today, with an easy upgrade path if you grow. Here are three practical tiers:

Tier 1: Compliance-only

Best when your records are tidy, your business is simple, and you only need annual filing. You’ll do most of the admin, and the accountant will prepare and submit your tax return (and possibly a basic accounts summary). Costs are usually lowest here.

Tier 2: Support + review

Best when you manage your books but want periodic checks to prevent errors and surprises. You might get quarterly reviews, light tax planning, and answers to questions. This often comes as a monthly package and can deliver strong peace of mind without paying for full bookkeeping.

Tier 3: Full service

Best when you want to outsource bookkeeping, stay on top of VAT or payroll, or you have complex rules like CIS. This is where costs rise, but so does the time you reclaim and the compliance risk you remove.

Hidden costs to consider beyond the accountant’s fee

When budgeting, think beyond the quote. Some costs are indirect but real:

Software subscriptions: Some accountants include them; others expect you to pay separately. If you’re comparing monthly packages, check whether software is included.

Time spent gathering records: Even with an accountant, you must provide information. A little organisation saves you time and reduces fees.

Late filing penalties and interest: If you miss deadlines, HMRC penalties and interest can eclipse your accountant’s fee.

Cash flow surprises: Payments on account and VAT bills can hit hard if you haven’t planned. A proactive accountant can help you forecast, which is an “invisible” saving.

How accountant fees relate to tax savings

Sole traders sometimes hope an accountant will “save more than they cost.” That can happen, but it’s not guaranteed and shouldn’t be the only reason to hire one. The value often comes from:

Claiming legitimate expenses correctly: Many people under-claim because they’re unsure what’s allowable or don’t keep evidence.

Avoiding over-claims that trigger problems: Over-claiming can lead to stress and potential HMRC scrutiny.

Making smart timing decisions: Such as when to buy equipment, whether to use cash basis or traditional accounting, and how to plan for large bills.

Understanding tax bills earlier: So you can set money aside and avoid last-minute panic.

In short, a good accountant improves both compliance and decision-making. Some of that translates into tax efficiency, but a lot of it translates into confidence and fewer costly mistakes.

So, how much should you expect to pay?

If you’re a typical sole trader in the UK with straightforward records and no VAT or payroll, it’s reasonable to expect an accountant to cost somewhere in the ballpark of a few hundred pounds per year for annual accounts and Self Assessment support. If you want year-round help, a monthly package in the low tens of pounds per month is common, rising as complexity and support increase.

The most important step is to match the fee to the work you need. A low-cost tax return service can be perfect for a simple situation. A more comprehensive accountant can be worth it when you’re busy, growing, VAT registered, dealing with CIS, or simply want peace of mind and proactive guidance.

Next steps: getting a quote that actually fits

To get a quote that reflects reality, prepare a short summary of your situation: what you do, whether you’re VAT registered, whether you have employees, roughly how many invoices and transactions you have each month, what you currently use to track money, and whether you want compliance-only or ongoing advice. When you provide this upfront, you’ll get more accurate quotes and avoid paying for the wrong level of service.

Finally, remember that the right accountant should feel like a practical ally. Price matters, but clarity, responsiveness, and confidence in their support matter too. When you find a good match, the fee can feel less like a cost and more like a stabiliser that helps your business run smoothly throughout the year.