One of the first questions sole traders ask us is: how much is an accountant for a sole trader, and is it really worth it? It is a fair question. You are running a lean business, every pound matters, and accounting fees are not the most exciting thing to spend money on.

The honest answer is that costs vary considerably depending on what you actually need — from a straightforward self-assessment return to a fuller service covering bookkeeping, VAT, and ongoing tax advice. Based on what we see in the market and the clients we work with, a sole trader can expect to pay anywhere from around £150 to £1,200 per year, with the bulk of straightforward cases sitting toward the lower end of that range.

But the headline number only tells part of the story. Below, we explain what drives the cost, what the different pricing models mean in practice, and how to decide what level of support is right for your business.

The single biggest factor in what you pay is the scope of work. A sole trader who earns income from one source, has no employees, is not VAT-registered, and keeps reasonably tidy records will pay considerably less than one juggling multiple income streams, rental income, subcontractors, and quarterly VAT returns.

Here is how complexity tends to layer on cost:

• Self-assessment only — if all you need is your annual tax return prepared and filed with HMRC, this is the baseline service. At Wings, our fixed fee for a self-assessment return is £150. Market rates for this service typically run from around £150 to £400 per year depending on complexity and who you use.
• Multiple income sources — property income, dividends, savings interest, or a second job all add time and care to the return, which is reflected in the fee.
• VAT registration — once you cross the VAT threshold (or register voluntarily), quarterly returns add to the workload and the cost.
• Bookkeeping support — if you want someone to manage your records throughout the year, not just at year-end, that is an ongoing service priced separately and quoted based on transaction volume.

Location also plays a role. Accountants in London and the South East have historically charged 20 to 40 per cent more than equivalent practices elsewhere — which is one reason a fully online practice like ours can offer competitive pricing to clients across the whole of the UK regardless of where they are based.

Sole trader accounting is sold in a few different ways, and it is worth understanding what you are actually buying before you commit.

Fixed one-off fee

You pay a set amount for a defined piece of work — typically the self-assessment return. There are no surprises, no monthly direct debits, and you know exactly what you are getting. This suits sole traders who are well-organised and mainly need compliance handled at year-end. Our self-assessment service works exactly this way: £150 per year, fixed.

Monthly subscription

Some online accountants bundle services into a monthly package — typically including bookkeeping software, year-end accounts, and self-assessment. Monthly fees in the market range from around £25 to £100 per month (plus VAT in most cases), so roughly £300 to £1,200 per year all-in. These packages suit sole traders who want everything handled and prefer to spread the cost. The trade-off is that you may be paying for things you do not need, or locked into a contract for services you rarely use.

Hourly rate

Some accountants still bill by the hour, particularly for ad hoc advice or one-off queries. Qualified accountants at smaller practices typically charge £50 to £150 per hour; chartered accountants at larger regional or city firms can charge significantly more. For regular compliance work, hourly billing creates uncertainty — we would always recommend agreeing a fixed scope and price upfront.

Price is one thing; what you actually get for it is another. When you are comparing quotes, make sure you are comparing like for like.

For a basic sole trader self-assessment service, you should expect:

• Preparation of your SA100 (personal tax return) and SA302 (tax computation)
• Review of all applicable income sources, allowances, and reliefs
• Advice on payments on account and how to avoid unexpected tax bills
• Timely submission to HMRC before the 31 January deadline

If bookkeeping is included, check whether the accountant provides cloud accounting software (Xero, QuickBooks, FreeAgent, or similar) as part of the fee — or whether that is an additional cost on top.

What you should not have to accept is being handed a completed return without any explanation. A good accountant will tell you what your tax liability is, why it is what it is, and what (if anything) you could do differently next year. Plain-English communication is not a luxury — it is part of the service.

We also think it is worth asking whether your accountant is qualified and regulated. Wings Online Filings is ACSP-registered with Companies House and AML-supervised by HMRC — that matters when you are handing someone access to your financial records.

For most sole traders, yes — and usually by a margin that surprises people.

The self-assessment system is not designed to be simple. HMRC’s own research consistently shows that a large proportion of self-employed people either overpay tax (by missing allowable expenses or reliefs) or underpay it (by misunderstanding what needs to be declared). Both outcomes cost you money: one immediately, the other later through penalties and interest.

A decent accountant will typically find enough in missed allowances — home office costs, mileage, equipment, professional subscriptions, and similar — to offset their fee in the first year. That is not a guarantee, but it is the pattern we see often enough to say it with confidence.

There is also the time argument. If you spend four hours a year on your self-assessment and value your time at anything close to what you charge clients, the arithmetic usually favours paying a professional. And if you make an error, it is the accountant’s professional responsibility to put it right — not yours alone to face HMRC with.

The sole traders who get the least value from an accountant are usually the ones who hand over a shoebox of receipts once a year and never engage further. The ones who get the most treat it as a working relationship: they ask questions, they take the advice on payments on account seriously, and they check in when their circumstances change.