Starting out as a sole trader can be exciting — you’re the boss, setting your own hours, and building something for yourself. But as your business grows, you might wonder, “Do I need an accountant? And how much will it cost?” Here’s a breakdown of what to expect and why hiring an accountant could be one of the best investments you make.
Why Do Sole Traders Need an Accountant?
Running your own business means wearing many hats, but dealing with accounting can feel like an entirely different game. That’s where an accountant can make all the difference.
- Tax Expertise: They know the rules inside and out, helping you avoid costly mistakes while claiming every expense you’re entitled to.
- Time Savings: Instead of wrestling with tax returns and bookkeeping, you can focus on what you do best — running your business.
- Peace of Mind: It’s reassuring to know that your finances are being handled correctly and fully comply with HMRC requirements.
How Much Does It Cost?
The cost depends on what you need and the complexity of your finances. For a basic annual tax return and advice, you’re typically looking at £200 to £600. If you need ongoing support, like monthly bookkeeping, costs usually range from £50 to £200 a month, depending on your transaction volume. Specialist advice — like VAT registration or growth strategies — is often quoted separately, either by the hour or per project.
Some accountants offer packages tailored to sole traders, so it’s worth asking for a personalised quote based on your specific requirements.
What Services Are Included?
When comparing accountants, take a close look at what’s included. Most will handle essentials like filing your self-assessment tax return, keeping your records in order with bookkeeping support, and offering tax planning advice to help lower your bill. Ask if these services are bundled together or billed separately to avoid surprises.
Can I Afford an Accountant as a Sole Trader?
Think of hiring an accountant as an investment rather than an expense. While the upfront cost might seem like a lot, the potential savings on tax, time, and stress often outweigh the fee.
Is Hiring an Accountant Worth It?
Absolutely! Here’s why:
- Tax Savings: A good accountant knows how to reduce your tax bill and keep more money in your pocket.
- Stress-Free Finances: You won’t lose sleep worrying about tax deadlines or compliance.
- Smarter Decisions: Accountants provide valuable insights that can help you grow your business profitably.
Finding the Right Accountant
The key is choosing someone who works regularly with sole traders, offers clear pricing, and communicates in plain English — no confusing jargon. At Simplex, we specialise in helping sole traders simplify their finances. Our packages are flexible and designed to grow with your business, so you can feel confident about your financial management.
Final Thoughts
So, how much is an accountant for a sole trader? It depends, but the value they bring is almost always greater than the cost. If you’re ready to spend less time worrying about taxes and more time focusing on your business, get in touch today. We’ll help you find the perfect accountant to fit your needs and budget.
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