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.
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.
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.
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.
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.
| 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 |
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.
Kletta is built specifically for sole traders who want accounting to be simple, not another part-time job.
With Kletta, you can:
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.
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:
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 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.
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.
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.
No. UK sole traders do not legally need an accountant, but they must keep accurate records of income and expenses for Self Assessment.
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.
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.
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.
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.