Do I need an accountant if I'm self-employed?

No. You are not legally required to use an accountant, and you can file your own Self Assessment return and keep your own records. An accountant tends to pay for itself when your income is regular, you are near a tax band, you are weighing up a limited company, or Making Tax Digital is about to apply.

What the law requires

You must register for Self Assessment by 5 October after the end of the tax year in which you started, file a return by 31 January if you file online, pay the tax by the same date, and keep records. None of that has to be done by an accountant.

When you can manage alone

A simple trade, a small number of transactions, one bank account, and no VAT. If your gross trading income is £1,000 or less, the trading allowance means you may not even need to tell HMRC.

When an accountant pays for itself

• Your profit is heading towards £50,270, where the 40% rate starts.
• You are deciding between staying a sole trader and forming a limited company.
• You have income from several places: employment, rent, dividends.
• You want to claim capital items, vehicle costs or use of home properly.
• Making Tax Digital is about to bring you into quarterly reporting.
• You have missed a deadline or received a penalty notice.

Worked example

This is illustrative. Some people have very little to find, and if that is you, doing it yourself may be fine.

What to do

1. Look at your last return and ask whether every cost was claimed.
2. Work out how many hours a year the admin takes you and what your time is worth.
3. If you are unsure, book a free consultation before your next return, not after it is filed.

Common mistakes

• Registering for Self Assessment late.
• Keeping records in a way that cannot be evidenced later.
• Waiting until January to find out what the bill is.

Sources: GOV.UK: register for Self Assessment