--- title: "Do You Need an Accountant as a Sole Trader? | HLS | HLS Accounts" description: "Do you need an accountant as a sole trader? Legally no. Here is when you are fine on your own, when one is worth the fee, and how to decide, in plain English." canonical: "https://hlsaccounting.co.uk/blog/do-i-need-an-accountant-sole-trader" last_updated: "2026-09-29T08:23:34.596Z" --- # Do you actually need an accountant as a sole trader? ![Smiling blonde woman with long hair wearing pink blazer and black top against dark vertical panels](/_next/image?url=%2Fapi%2Fmedia%2Ffile%2Fhannah-1-128x148.png%3Fv%3D1773230081541&w=128&q=75&dpl=dpl_323YbtH6AZDkKuz2tPVdmK5zmGfE) Hannah SimpsonChartered Accountant PublishedTuesday, 29 September 2026 ![Sheet of paper with a hand-drawn question mark, illustrating whether a sole trader needs an accountant](/_next/image?url=%2Fapi%2Fmedia%2Ffile%2Fdo-i-need-an-accountant-sole-trader-hls-accounting.png%3Fprefix%3Dtenants%252F69aeb409299f734b25d026f2%26v%3D1788430625242&w=3840&q=75&dpl=dpl_323YbtH6AZDkKuz2tPVdmK5zmGfE) No, a sole trader does not have to have an accountant. You are free to keep your own records and file your own Self Assessment tax return, and plenty of people do exactly that. The real question is whether doing it yourself is the best use of your time and money. This guide gives you an honest answer: when you are perfectly fine on your own, and when an accountant genuinely earns their fee. ## Do sole traders have to have an accountant? No. There is no legal requirement for a sole trader to use an accountant. HMRC asks you to register as self employed, keep records of your income and expenses, and file a Self Assessment tax return each year. You are allowed to do all of that yourself. Being allowed to do it yourself is not the same as it being the best idea, though. Whether you should comes down to three things: your time, how confident you are with tax, and how complicated your income is. > **The honest answer:** if your business is simple and you are comfortable with the paperwork, you may not need an accountant yet. As soon as the numbers or the admin start eating into the time you should be spending on the actual work, that is usually the moment one starts to pay for itself. ## What does an accountant actually do for a sole trader? Far more than fill in a form once a year. A good accountant will register you correctly with HMRC, get your record keeping set up, and then each year prepare and file your [Self Assessment tax return](/tax-compliance-cardiff) accurately and on time. Along the way they make sure you claim [every expense you are entitled to](/blog/what-expenses-can-a-sole-trader-claim), so you do not pay more tax than you need to. Just as valuable is the day to day support: someone to answer the "can I claim this" and "how much should I set aside" questions as they come up, and to keep you clear of deadlines and penalties. The value is not only the return itself. It is the tax saved, the time freed up, and knowing the numbers are right. ## When you might be fine on your own Doing your own accounts can make good sense if your affairs are genuinely simple. That usually means: - Your income is modest and your situation is straightforward - You have few transactions and you keep tidy records - You are confident with tax and happy to keep up with the rules - You have the time, and would rather spend it than the fee > **Start simple, get help when it grows.** Many sole traders handle their own return in the early days and bring in an accountant once things get busier. There is nothing wrong with either choice. The point is to make it a deliberate decision, rather than drifting into a January panic every year. ## Signs it is time to get an accountant For most people there comes a point where help is clearly worth it. The common triggers are: - Your income is growing and your tax bill is getting harder to predict - Your turnover is heading towards the [VAT registration threshold](/tax-compliance-cardiff), where registering at the wrong time is an expensive mistake - You have more than one source of income, or rental income alongside your trade - You are genuinely not sure what you can and cannot claim - You are weighing up whether to [stay a sole trader or set up a limited company](/service-categories/business-start-up-and-advisory) - The tax return is eating evenings and weekends you do not have > **Making Tax Digital is changing things.** HMRC is rolling out Making Tax Digital for Income Tax, which will require many sole traders and landlords above a certain income level to keep digital records and send updates to HMRC through software. If that is on the horizon for you, getting set up properly is one of the clearer reasons to bring in an accountant. Our guide to [the records HMRC expects you to keep](/blog/what-records-does-hmrc-expect-you-to-keep-for-your-business) covers the basics. ## Does an accountant actually save you money? Often, yes, and by more than the fee. The saving tends to come from three places: tax you would otherwise overpay by missing reliefs and allowances, penalties you avoid by never missing a deadline, and the hours you get back to earn in your actual business. On top of that, accountancy fees for your business are an allowable expense, so part of the cost is offset against your tax bill. An accountant will not make tax disappear, and a good one will never pretend otherwise. What they will do is make sure you pay what you owe and not a penny more, without the stress of working it all out yourself. It is worth reading our honest guide to [what an accountant costs](/blog/how-much-does-an-accountant-cost) alongside this, so you can weigh the fee against what it saves. > **The real cost is rarely the fee.** For a lot of sole traders, the expensive option is doing it themselves and getting it wrong. An overpaid tax bill, a missed allowance or a late filing penalty usually dwarfs what an accountant would have charged in the first place. ## Frequently asked questions ### Do I legally need an accountant as a sole trader? No. There is no legal requirement to use an accountant. You can register with HMRC, keep your own records and file your own Self Assessment. People choose an accountant for the time saved and the tax expertise, not because the law says they must. ### Can I do my own Self Assessment tax return? Yes. HMRC's online system lets you file your own return, and for simple affairs it is manageable. The risks are missing an allowance you were entitled to, misreporting income, or leaving it until the last minute. If your return is straightforward and you are organised, doing it yourself is perfectly reasonable. ### Is an accountant worth it for a small side business? It depends how simple it is. If you earn a small amount through a handful of transactions, you may be fine on your own while your income is low. As the side business grows, or if you are unsure how it interacts with your main income, an accountant quickly becomes worthwhile. ### When should a sole trader get an accountant? A good rule of thumb is when the admin starts costing you more in time or worry than an accountant would in fees. Common trigger points are rising income, nearing the VAT threshold, adding another income source, or simply dreading the tax return each year. ### Does having an accountant reduce my tax bill? It often does, entirely legitimately, by making sure you claim the expenses and allowances you are entitled to and set things up sensibly. An accountant cannot make tax vanish, but they routinely find savings that cover their fee, and they keep you clear of costly mistakes. ### Do I need an accountant to register as self employed? No, you can register with HMRC yourself. That said, an accountant can make sure you register at the right time, choose the right setup, and start your record keeping off on the right foot, which saves untangling things later. This is part of our [start-up advice and support](/service-categories/business-start-up-and-advisory). ## Not sure whether you need one? The honest truth is that some sole traders are perfectly fine on their own, and others are quietly losing time and money by going it alone. If you are not sure which camp you are in, that is exactly the sort of thing we are happy to talk through, with no pressure either way. At HLS Accounts in Cardiff, we work with sole traders across Cardiff, Bridgend, Newport, Barry and the wider South Wales area. We will give you a straight answer about whether you need us, and if you do not yet, we will happily tell you that too. Feel free to [get in touch](/contact) whenever it suits. [Book a free consultation](https://calendly.com/hlsaccounting/new-client-meeting) or call the HLS team in Cardiff on 02922 805941. 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