How Much Does an Accountant Cost for a Sole Trader in the UK?

Hiring an accountant as a sole trader in the UK can cost anywhere from a few hundred pounds per year to well over £1,000, depending on what you need. A basic Self Assessment tax return is commonly priced around £200–£299, while ongoing bookkeeping and Making Tax Digital support can add more monthly or quarterly costs. According to the 2025/26 UK Accounting and Tax Pricing Benchmark, many UK accounting firms are also planning to increase their fees over the next year.

For many sole traders, the real question is no longer just “Do I need an accountant?” It is: do I need a traditional accountant, or can I use HMRC-recognised accounting software built for sole traders?

Kletta is designed for this exact problem. It helps UK sole traders keep records, manage income and expenses, prepare for Making Tax Digital, and reduce the need for expensive manual admin.

Average accountant costs for sole traders in the UK

The cost of an accountant depends on the services included. A sole trader with simple income and expenses may only need help with Self Assessment. A busier sole trader, landlord, CIS subcontractor or contractor may need bookkeeping, quarterly reporting, year-end support and tax planning.

Here is a practical overview of typical UK pricing:

Service	Typical UK cost	What it usually covers
Basic Self Assessment tax return	£200–£299	Preparing and submitting a simple tax return
Monthly bookkeeping	Often under £150/month	Recording income, expenses and financial records
MTD for ITSA quarterly reporting	£75–£150 per quarter	Quarterly digital updates under Making Tax Digital
MTD year-end finalisation	Less than £250–£500	Final year-end tax position and submission
Tax planning/advisory	£500–£999/year	Advice on tax efficiency and planning

These figures are based on the UK accounting pricing benchmark, where the most common fee for a basic Self Assessment return was £200–£299, and many firms expected to charge £75–£150 per quarter for MTD for ITSA quarterly reporting.

The exact price will depend on complexity. For example, a sole trader with one income stream and a small number of expenses will usually pay less than someone with rental income, CIS deductions, subcontractor invoices, multiple bank accounts or poor record-keeping.

Why are accounting fees increasing in the UK?

Accounting fees are not standing still. The UK benchmark report found that 84% of firms plan to increase prices across their services in the next 12 months, with rising business costs being the most common reason.

This matters for sole traders because many traditional accounting services still rely on manual work. If your accountant needs to chase receipts, clean up spreadsheets, correct missing records or prepare your tax return from scratch, that time is reflected in the fee.

The shift to Making Tax Digital also adds pressure. From 6 April 2026, sole traders and landlords with qualifying income over £50,000 for the 2024 to 2025 tax year will need to use Making Tax Digital for Income Tax. The threshold then moves to over £30,000 from 6 April 2027 and over £20,000 from 6 April 2028.

That means many sole traders will need to keep digital records and use compatible software instead of relying only on once-a-year tax return preparation.

Do sole traders legally need an accountant?

No. A sole trader in the UK does not legally have to hire an accountant. However, sole traders must keep accurate business records and use those records to complete their Self Assessment tax return. GOV.UK states that self-employed sole traders must keep records of business income and expenses for Self Assessment.

The online Self Assessment deadline is usually 31 January after the end of the tax year. For example, GOV.UK states that the online deadline for the 2024 to 2025 tax year was 31 January 2026.

So the real requirement is not “having an accountant.” The real requirement is having accurate records, submitting the right information, and paying tax on time.

That is where accounting software can be a better fit for many sole traders.

Accountant vs accounting software: which is cheaper?

For many UK sole traders, accounting software is cheaper than paying for traditional accountant-led bookkeeping and tax admin.

Option	Best for	Pros	Cons
Traditional accountant	Complex cases or businesses needing regular advice	Human support, tax advice, peace of mind	Can be expensive, often slower, may still require you to send receipts and records
Spreadsheet	Very simple side income	Free or cheap	Easy to make mistakes, not ideal for MTD, manual work
Generic accounting software	Small businesses with finance experience	Good functionality	Often too complex for simple sole traders
Kletta ✅	Sole traders who want simple, mobile-first accounting	Human support. Built for sole traders, MTD-ready, easier to use, clear pricing.	Not designed for limited companies or complex corporate accounting

A traditional accountant may still be useful if your business is complex, you need tax planning, or you want full professional advice. But if you mainly need to track income, expenses, receipts and tax records, software can reduce both cost and admin.

What changes with Making Tax Digital?

Making Tax Digital for Income Tax changes how many sole traders and landlords report income to HMRC. Instead of relying only on one annual Self Assessment process, affected taxpayers will need to keep digital records and send quarterly updates using compatible software. GOV.UK confirms that when a person needs to start depends on their qualifying income, beginning with those over £50,000 from 6 April 2026.

This is one of the biggest reasons sole traders should review their accounting setup now. If you wait until the deadline, you may end up rushing into software that is too complicated or paying extra for accountant-led MTD support.

Traditional route vs MTD-ready software

Area	Traditional accountant route	Kletta route
Record-keeping	Often sent to accountant later	Done continuously in the app
Receipts	Usually emailed, uploaded or sent manually	Added directly from your phone
MTD preparation	May become an extra service	Built into the software workflow
Pricing	Can vary by accountant and workload	Clear monthly software pricing
Best fit	Complex tax situations	Sole traders who want simplicity

How much could a sole trader pay under a traditional accountant model?

A sole trader using traditional support might pay separately for different services:

Example annual cost item	Estimated cost
Basic Self Assessment tax return	£200–£299
MTD quarterly updates, 4 × £75–£150	£300–£600
Year-end MTD finalisation	£250–£500
Monthly bookkeeping, if needed	Up to £1,800/year if £150/month

This means a sole trader could easily move from a few hundred pounds per year to over £1,000 per year if bookkeeping and MTD support are added.

This does not mean every accountant will charge this much. Pricing varies widely. But it shows why many sole traders are now looking for a more scalable software-first option.

Why Kletta is a better fit for many UK sole traders

Kletta is built specifically for sole traders who want accounting to be simple, not another part-time job.

With Kletta, you can:

keep income and expense records in one place
manage receipts and business costs from your phone
prepare for Making Tax Digital
reduce manual spreadsheet work
avoid unpredictable accountant fees
get human bookkeeping help when needed

The key difference is that Kletta is not trying to be complicated accounting software for every type of business. It is designed around how sole traders actually work.

For builders and CIS subcontractors, Kletta can also support CIS-specific workflows, including CIS income, deductions, materials, private jobs and rental income on the side.

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Who should use an accountant instead?

Kletta is the best fit for sole traders who want a simple, affordable and MTD-ready way to manage their accounting. However, some people may still need an accountant.

You may want an accountant if:

you have a complex tax situation
you are moving from sole trader to limited company
you need detailed tax planning
you have multiple businesses or complicated property income
you are under HMRC investigation
you want professional advice before making major business decisions

For many everyday sole traders, though, the expensive part of accounting is not high-level advice. It is basic admin: collecting receipts, categorising expenses, tracking income and preparing records. That is exactly the work software can simplify.

The cheapest way to manage sole trader accounting

The cheapest option is not always the best option. A spreadsheet may cost nothing, but if it leads to mistakes, missed expenses or last-minute stress, it can become expensive quickly.

The best option for most sole traders is a setup that is:

Requirement	Why it matters
Digital	Required for MTD if you fall within the rules
Simple	You are more likely to keep records up to date
Mobile-first	Useful for builders, contractors, drivers and field workers
Sole trader-focused	Avoids unnecessary limited company features
Clear on pricing	Helps avoid surprise accounting bills
Supported	Gives help when you need it

That is why Kletta is a strong option for sole traders who want to stay compliant without paying traditional accountant prices.

Final verdict: how much should a sole trader pay for accounting?

A simple sole trader tax return may cost around £200–£299 through a traditional accountant. But once bookkeeping, MTD quarterly reporting and year-end finalisation are added, the total annual cost can rise significantly.

For sole traders who need complex tax advice, an accountant can be worth the money. But for many UK sole traders, especially those who want a simple way to track income, expenses, receipts and MTD records, Kletta offers a more modern and affordable alternative.

Kletta helps you manage your sole trader accounting without turning tax admin into a full-time job.

FAQ

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

A basic Self Assessment tax return commonly costs around £200–£299, based on UK accounting pricing benchmark data. More complete support, including bookkeeping and MTD services, can cost much more.

Do I need an accountant as a sole trader?

No. UK sole traders do not legally need an accountant, but they must keep accurate records of income and expenses for Self Assessment.

Is accounting software cheaper than an accountant?

Usually, yes. Accounting software is often cheaper than paying for manual bookkeeping, tax return preparation and MTD reporting separately. The best option depends on how complex your business is.

What is Making Tax Digital for sole traders?

Making Tax Digital for Income Tax requires affected sole traders and landlords to keep digital records and use compatible software to send updates to HMRC. The first group, with qualifying income over £50,000, starts from 6 April 2026.

Can I use Kletta instead of an accountant?

Many sole traders can use Kletta to manage everyday accounting, income, expenses, receipts and MTD preparation. If your tax situation is complex, you may still want advice from an accountant.

What is the cheapest way to do sole trader bookkeeping?

The cheapest practical option is usually simple accounting software built for sole traders. Spreadsheets can be free, but they are manual, error-prone and not ideal for Making Tax Digital.