Accountants for sole traders in the UK

Self-employed businesses gain access to dedicated accountants for sole traders to handle your Self-Assessment tax return, review allowable expenses, and keep your financial records accurate.

With clear advice and no unexpected bills, you can focus on running your business while keeping your tax position fully compliant and planning your finances.

Running a business as a sole trader offers flexibility, but keeping up with tax obligations can quickly consume valuable time. Common self-employed accounting responsibilities include:

At Tax Driven Accountants, our team manages your compliance and tax planning on a fixed-fee basis, so you never have to worry about missed deadlines or overpaying tax.

What our accountants for sole traders can offer your business

An accountant for sole traders manages the day-to-day and year-end tax requirements of your self-employed business.

As part of our complete business accounts and tax services, our dedicated support includes:

Preparing and submitting your annual Self Assessment tax return (SA100) directly to HMRC

Conducting a complete review of your allowable expenses to ensure every eligible deduction is claimed

Calculating your Income Tax, Class 2, and Class 4 National Insurance contributions ahead of time

Explaining your HMRC Payments on Account so future tax bills never catch you off guard

Setting up and maintaining digital record-keeping through bookkeeping software like Xero or QuickBooks

Registering your business for VAT if your turnover approaches or exceeds the statutory threshold

Assisting with payroll services if you employ staff or contract team members.

What can sole traders claim from expenses and allowable deductions?

One of the largest benefits of working with dedicated accountants for sole traders is identifying allowable business expenses that reduce your overall Income tax liability. Costs must be incurred “wholly and exclusively” for business purposes to qualify.

Common allowable expenses include:

Vehicle and travel

Business mileage (55p per mile for the first 10,000 miles as of 2026), public transport fares, parking, and overnight business trip accommodation

Working from home

A proportion of household bills (electricity, heating, broadband, council tax) or HMRC simplified flat-rate home office claims

Office and software costs

Stationery, phone contracts (business proportion), computers, and software subscriptions like Xero, QuickBooks, or industry apps.

Professional fees and insurance

Accountancy fees, professional indemnity insurance, public liability cover, and trade body memberships.

Marketing and training

Website domain hosting, online advertising, printed business cards, and training courses that upgrade skills for your existing trade.

We perform a line-by-line review of your records, to help you claim the most tax relief possible under UK tax laws and maximise profits.

Bookkeeping and Making Tax Digital (MTD) for sole traders

Keeping manual paper records is becoming a thing of the past. Under Making Tax Digital (MTD) for Income Tax, self-employed individuals with qualifying income over £50,000 are required to keep digital records and submit quarterly summaries to HMRC using compatible software.

The threshold drops to £30,000 from April 2027 and £20,000 from April 2028.

Our accountants for sole traders help with the transition to digital accounting:

Thinking of starting or switching your business structure?

If you are setting up as self-employed for the first time, our startup accountants will provide guidance on setting up with HMRC, registering for tax, and choosing your initial trading structure.

If your self-employed profits are growing significantly, you might also wonder when to switch to a limited company setup.

Should you incorporate?

While trading as a sole trader keeps administration simple, operating through a limited company can offer greater tax efficiency once your net profits reach a certain level.

When your profits increase, paying Corporation Tax and taking a combination of salary and dividends can yield lower overall tax rates than paying Income Tax and National Insurance as a sole trader. However, running a limited company comes with extra statutory filing obligations with Companies House.

We run exact tax calculations based on your specific figures to help you determine if and when incorporating makes financial sense. When you are ready to make the transition, our company formation accountants handle the full transition for you.

Why choose Tax Driven Accountants as a sole trader?

With 15 physical offices and over 25 virtual accountants operating across the UK, Tax Driven Accountants offers accessible support tailored to self-employed individuals. All fees are agreed upfront as a fixed monthly or annual rate, giving you full peace of mind with no hidden charges.

Get started with our sole trader accountants today

If you need help filing an upcoming Self Assessment tax return or want complete ongoing bookkeeping support, we are ready to support your accountancy needs.

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Frequently asked questions about accountants for sole traders

Do sole traders need an accountant?

While hiring an accountant is not a legal requirement, working with one ensures your Self-Assessment is filed accurately and on time. A dedicated sole trader accountant helps you claim all allowable expenses, navigate MTD rules, and avoid HMRC penalties, which often saves more in tax than the accounting fee costs.

How much does a sole trader accountant cost?

Fees depend on the complexity of your income, turnover, and if you require basic annual tax return filing or full digital bookkeeping and VAT support. Tax Driven Accountants provides upfront, fixed-fee quotes tailored to your business.

What can sole traders claim as allowable expenses?

Sole traders can claim day-to-day business costs incurred “wholly and exclusively” for work. This includes business travel, home office proportions, stationery, software subscriptions, professional insurance, phone contracts, and marketing spend.

When should a sole trader become a limited company?

There is no fixed statutory cutoff, but incorporating often becomes tax-efficient when your taxable profit reaches a level where paying Corporation Tax and drawing director dividends results in lower overall tax liabilities than Income Tax and National Insurance. We provide tailored calculations to help you decide when to make the switch.

Do you have a different question?

We’re happy to answer any questions you may have about Tax Driven Accountants and our services. To get in touch, please use the link below and send us a message via our contact page.