If you’re a freelancer or sole trader in the UK, managing money, invoices, and tax returns is part of the job — but do you actually need to hire an accountant?
Let’s break it down: what an accountant does, when to DIY, and when it makes sense to outsource.
🧾 What Does an Accountant Actually Do?
A qualified accountant can help you with:
- Self-assessment tax returns (SA100 + SA103)
- Expense categorisation and claims
- VAT registration and returns
- Year-end summaries
- Advice on allowable expenses, pensions, and more
They can also help prevent fines, late fees, and HMRC stress — especially if your finances are messy or complex.
🤔 Can You File Your Own Tax Return?
Yes. HMRC allows sole traders and freelancers to file their own returns using:
- The online HMRC system
- Accounting software that supports self-assessment (like QuickBooks or Zoho)
You’ll need to:
- Keep accurate records of income and expenses
- Submit your return by 31 January
- Pay any tax and National Insurance due
It’s 100% legal and common to go DIY — especially if your finances are simple.
✅ When You Might NOT Need an Accountant
You may be fine doing it yourself if:
- You earn under ~£30k/year
- You have a single income source
- You track expenses cleanly (e.g. via Zoho or Wave)
- You’re confident filing online with HMRC
👉 Check out the best free accounting tools →
🚨 When Hiring an Accountant Is Worth It
You should consider outsourcing if:
- You’re earning over ~£50k
- You have multiple clients, sources of income, or VAT
- You’re unsure about expenses, tax bands, or allowances
- You hate admin or have missed deadlines in the past
Many freelancers report feeling less stress and more time once they offload their tax responsibilities.
Bonus: accounting fees are tax-deductible.
💸 How Much Does an Accountant Cost?
UK freelancers typically pay:
- £150–£300/year for self-assessment only
- £400–£800/year for full bookkeeping + returns
- Higher if you’re VAT-registered or have employees
You can often pay monthly, and many accountants now work entirely online.
🤝 Should You Use a Freelancer Accountant?
Yes — many UK accountants specialise in sole traders and know exactly what freelancers need. You’ll get:
- Quick responses
- Transparent pricing
- Advice tailored to self-employment
Check for firms that mention freelancers, sole traders, or your industry (e.g. creative, digital, trades, etc.)
📌 Final Thoughts
You don’t legally need an accountant — but depending on your income and confidence, they can save you time, stress, and even money.
If you’re earning under £30k and have simple finances, you can likely do it yourself with the right software. But once things grow, a pro can keep you safe and help you scale.