Quick answer
Do I have to have an accountant?
No, not by law. Many sole traders keep their own records and do their own tax returns. That doesn't mean doing it all yourself is always the cheapest or safest option.
An accountant can help with registering, choosing how to set up, accounts, tax returns, payroll, VAT, CIS and planning, depending on what you agree.
The jargon
The words you'll come across, in plain English.
- Accountant: someone who prepares accounts and tax returns. Anyone can use the name, so check their membership.
- Bookkeeper: someone who records your money week to week. Often cheaper than an accountant.
- Professional body: an organisation like ICAEW or ACCA that sets standards for its members and handles complaints.
- Engagement letter: the written agreement saying exactly what your accountant will and won't do, and the fee.
- Agent access: HMRC's way of letting your accountant deal with your tax as your agent, without using your own login.
- HMRC enquiry: when HMRC formally checks a tax return.
When it's worth it
When is an accountant worth paying for?
How complicated your affairs are matters more than how big you are. It's often worth it when:
- You're choosing or changing between sole trader and limited company
- You're getting close to the VAT threshold
- You're in CIS, as contractor, subcontractor or both
- You employ people
- You're a limited company. Since April 2026, companies must use software to file their tax return with HMRC
- You've got other income, property or finance deals
- Your records are behind, or you've missed a deadline
- HMRC has opened an enquiry
What's included?
What does an accountant actually do for me?
Only what you agree. Having an accountant doesn't mean they do everything.
In writing
The engagement letter says who keeps the books, who files what, who does payroll, and which dates they'll meet.
Assumed
You hand over a bag of receipts once a year, and assume they're watching your VAT, CIS and every deadline.
Ask what's not included, what you need to give them, and how extra work is charged.
Choosing one
How do I choose a good accountant?
Make sure they know your kind of work. Ask them:
- Which professional body are you a member of?
- Do you work with trades, CIS and VAT regularly?
- Who will actually do the work?
- How often can I speak to you?
- What software will we use?
- How are fees worked out?
- What happens if I leave?
Anyone can call themselves an accountant. Membership of a professional body, like ICAEW or ACCA, gives you standards and a way to complain. Check any qualification they claim with that body directly.
Your responsibility
Am I still responsible if my accountant does it?
Yes. It's still your name on it. You must give accurate information, check your returns and accounts, approve them, and keep access to your records. Never sign anything you don't understand.
Check you get confirmation it was filed, and when payment is due. An email that wasn't replied to isn't proof.
Is it worth it?
Is an accountant worth the money?
Weigh the cost against the risk and your time. Good help cuts mistakes, improves your records and frees up your evenings. It can't fix bad records, or guarantee HMRC agrees with every decision.
Sources
Where this guide comes from.
Checked against these official pages on 27/10/2026. Next check due 27/01/2027. Rules and figures can change sooner, so check the official page again before making a tax, legal or money decision, and ask a qualified adviser about your own situation.
FAQs
Frequently asked questions.
Do I need one as a sole trader?
Not by law. Think about how complicated your affairs are, your time, VAT, CIS, and the cost of getting it wrong.
Do I need one for a limited company?
Not by law, but most companies find company accounts and tax are worth paying for, especially now the tax return has to be filed with software.
Can an accountant save me tax?
They can make sure you claim what you're entitled to. Be wary of anyone promising big savings before they understand your business.
Should my accountant have all my logins?
No. Let them deal with HMRC as your agent instead. Keep your own records, numbers and logins.
Can I change accountant?
Yes. Check notice periods, fees, getting your records back, software access and who files what during the switch.
What should I give my accountant?
Organised records, bank and loan statements, payroll and VAT details, previous returns, any letters, and honest explanations of anything unusual.
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