If you’re self-employed, it’s normal to wonder whether you actually need a self-employed accountant, or whether you can manage everything yourself.
Some sole traders can handle their own bookkeeping and Self Assessment, especially in the early days. But for many people, working with a self-employed accountant quickly becomes worth it because it saves time, reduces stress, and helps avoid expensive mistakes.
This guide will help you decide if you need a self-employed accountant, what they actually do, and why it matters more than ever with Making Tax Digital for Income Tax (MTD for IT) starting soon.
What you’re responsible for when you’re self-employed
When you’re self-employed, you’re responsible for keeping on top of your tax and records, including:
- Registering for Self Assessment (if required)
- Keeping accurate income and expense records
- Submitting your Self Assessment tax return on time
- Paying Income Tax and National Insurance when due
- Understanding what expenses you can claim (and what you can’t)
Even if your business feels “small”, HMRC still expects things to be accurate.
Can you do it yourself?
Yes, you can do your own accounts and Self Assessment return.
Doing it yourself might be fine if:
- You have a simple income stream
- You have very few expenses
- You’re organised and confident with record keeping
- You have time to learn the rules and keep up with changes
But many self-employed people find DIY works… until it doesn’t.
Common mistakes self-employed people make without an accountant
These are issues we often see from new sole traders:
- Claiming the wrong expenses (or missing allowable ones)
- Incomplete records and missing receipts
- Not setting aside money for tax (then getting a nasty surprise)
- Late filings and avoidable penalties
- Confusion around working-from-home, vehicle costs, and mixed personal/business spending
A good self-employed accountant helps prevent these problems before they become stressful (or costly).
Signs you’d benefit from a self-employed accountant
If any of these apply, it’s usually a strong sign you’ll benefit from support:
- You’re not sure what you can claim as an expense
- Your income is increasing and you want to plan ahead
- You’re short on time and admin is piling up
- You’ve had an HMRC letter and you’re not sure what it means
- You’re thinking about VAT registration
- You want peace of mind that everything is correct
A self-employed accountant isn’t just for “big” businesses, it’s for anyone who wants to run their finances properly.
How a self-employed accountant can save you money
A self-employed accountant can often pay for themselves through:
- Making sure you claim all allowable expenses
- Helping you avoid errors that lead to penalties or HMRC queries
- Advising on tax planning (so you’re not overpaying)
- Helping you budget and set aside the right amounts for tax
- Keeping you compliant as rules change
Just as importantly, they save you time. And time is money when you’re self-employed.
Making Tax Digital for Income Tax is starting 6 April 2026
This is the big change that makes getting support more valuable than ever.
From 6 April 2026, MTD for Income Tax is being introduced for sole traders and landlords with qualifying income over £50,000. That means you’ll need to:
- Keep digital records
- Use MTD-compatible software
- Send quarterly updates to HMRC (instead of only doing one annual return)
For those who fall into the first phase, the key quarterly update deadlines are:
- 7 August 2026 (first quarterly update)
- 7 November 2026 (second quarterly update)
- 7 February 2027 (third quarterly update)
- 7 May 2027 (fourth quarterly update)
If you’ve been doing Self Assessment once per year, this is a major shift in how you’ll manage your records and reporting.
What counts as “qualifying income”?
For MTD for Income Tax, HMRC looks at your total turnover (gross income) from self-employment and/or property income, not your profit after expenses. (So it’s especially important to know where you stand and plan ahead.)
What to do now if you think you’ll be affected
If you’re anywhere near the threshold (or expect to grow), these steps will make life much easier:
- Start keeping records digitally (even if you’re not required yet)
- Separate your business and personal spending where possible
- Get into the habit of weekly or monthly bookkeeping
- Keep receipts organised (digital is best)
- Build a simple tax budget so you’re not caught out
A self-employed accountant can also help you set up the right software and routine so MTD doesn’t feel overwhelming.
What to ask before hiring a self-employed accountant
If you’re speaking to an accountant, ask:
- What’s included in the fee (Self Assessment only, or bookkeeping too)?
- Will you remind me about deadlines and help me stay organised?
- Can you support me with MTD for Income Tax and software setup?
- How do you prefer to work (monthly, quarterly, yearly)?
- How quickly do you respond if I have questions?
You want someone who makes things clearer, not more confusing.
How we can help
At Crossley & Davis, we help sole traders stay organised, compliant, and confident with their finances. If you’re considering a self-employed accountant, we can support you with:
- Self Assessment tax returns
- Bookkeeping and record keeping
- Advice on allowable expenses
- MTD for Income Tax preparation and software support
- Ongoing support throughout the year (not just at deadline time)
If you’re self-employed and unsure what you need, get in touch and we’ll point you in the right direction.
Leave a Reply