Sole trader accounting,kept tidy all year.

UK sole trader accountants typically charge £50-£150 per month for ongoing monthly support, or £150-£350 as a one-off for an annual Self Assessment tax return. Our monthly service starts at £25/month (well below the market median) and includes bookkeeping, MTD-compatible software, year-end Self Assessment, and MTD ITSA quarterly updates if you're in scope. Our one-off Self Assessment is £99.

Rule of thumb: if your income is under £20k with simple records and a small number of expenses, a one-off Self Assessment (£99 with us) is the most cost-effective option. Above £30k, or if you have many transactions, expenses, or you're in MTD ITSA scope from April 2026, ongoing monthly accounting saves money because tax-relief catches and bookkeeping consistency typically exceed the fee. From £50k gross income, MTD ITSA effectively mandates monthly bookkeeping anyway.

From 6 April 2026 (live now), MTD for Income Tax (MTD ITSA) applies to UK sole traders and landlords whose qualifying gross income exceeded £50,000 in the 2024/25 tax year. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. 'Qualifying income' is gross income before expenses — so a sole trader with £55,000 turnover and £30,000 expenses is still in scope based on the £55,000 gross figure. Use our free MTD check to see exactly when you'll need to comply.

Sole trader is simpler and cheaper to run; limited company tends to be more tax-efficient at profits above roughly £30,000 and offers liability protection. The crossover point depends on your dividend strategy, pension contributions and personal allowance use. As a rough guide: under £30k profit, sole trader is usually better; £30k-£50k, depends on your circumstances; over £50k, LTD is usually more tax-efficient. We can model both for you on the set-up call.

Sales invoices and income records, expense receipts (or digital records), bank statements, mileage logs if you claim vehicle expenses, and a record of cash withdrawals/personal use. HMRC requires these to be kept for at least 5 years from the 31 January submission deadline. Under MTD ITSA (April 2026+), these records must be kept digitally using MTD-compatible software. We handle the digital record-keeping for monthly clients.

Anything 'wholly and exclusively' for business: office costs, business travel, accountancy fees, work-related insurance, stock, equipment, software subscriptions, marketing, training that maintains existing skills, professional memberships and a proportion of home-running costs if you work from home. Personal expenses, entertainment and most clothing are not allowable. We check every legitimate relief as part of your year-end work.

By 5 October following the end of the tax year you started self-employed activity. So if you started in May 2025 (tax year 2025/26), you must register by 5 October 2026. In practice, registering immediately is better — your UTR arrives in ~10 working days and HMRC correspondence then routes correctly. See our Sole trader registration service (£49) for the full set-up.

Yes — typically completed in 3 working days. We handle professional clearance with your previous accountant (a standard ICAEW courtesy), HMRC agent re-authorisation, software migration and chart-of-accounts setup. There's no break in your records.

31 January following the end of the tax year, for both the online submission and the balancing tax payment. So for the 2025/26 tax year (which ended 5 April 2026), Self Assessment is due 31 January 2027. Payments on account (where applicable) are due 31 July as well. We recommend submitting by mid-January at the latest to avoid HMRC system congestion.

Typically, yes — especially for the self-employed. ICAEW data suggests a good accountant identifies tax reliefs worth several hundred to several thousand pounds annually for most sole traders (allowable expenses, capital allowances, payments-on-account adjustments, pension contributions for tax relief). Accountancy fees themselves are also tax-deductible. Our £25/month service typically pays for itself in the first year through claimed reliefs that DIY filers miss.