If you’re running a small business, freelancing, or earning rental income, it’s very common to ask:
“Do I actually need an accountant — or can I do this myself?”
For some people, the answer is “not yet”. For others, having an accountant is essential. This guide explains when you do and don’t need an accountant in the UK, and how changes like Making Tax Digital (MTD) affect that decision.
When You Might Not Need an Accountant (Yet)
You may be able to manage without an accountant if:
- You’re a sole trader with simple income
- Your transaction volume is low
- You’re comfortable using accounting software
- You’re not VAT registered
- Your records are well organised
Even in these cases, many people still choose to use an accountant for year-end checks or peace of mind, particularly when filing a Self Assessment return.
👉 See: Sole trader accounting services
When You Should Strongly Consider an Accountant
Most UK businesses reach a point where professional support becomes worthwhile — often sooner than expected.
1. You’re Running a Limited Company
Limited companies come with legal responsibilities, including:
- Statutory accounts
- Corporation Tax returns
- Director compliance
Mistakes can lead to penalties or personal liability.
👉 Related: Limited company accounting
2. You’re Registered for VAT
VAT rules are complex and mistakes can be costly. An accountant helps with:
- Correct VAT treatment
- Timely submissions
- Avoiding under- or over-payments
👉 Related: VAT returns and registration
3. You’re Affected by Making Tax Digital (MTD)
From April 2026, many sole traders and landlords must comply with Making Tax Digital for Income Tax (MTD for ITSA).
This means:
- Digital record-keeping
- Quarterly submissions to HMRC
- An End of Period Statement
- A final declaration
For many, this turns accounting into an ongoing process, not a once-a-year task.
👉 Related: Making Tax Digital for Income Tax explained
4. Your Finances Are Becoming More Complex
You may benefit from an accountant if you have:
- Multiple income streams
- Employees or subcontractors
- Growing expenses or investment
- Irregular cash flow
Complexity increases risk — and the value of professional oversight.
5. You Want to Pay the Right Amount of Tax
A good accountant helps you:
- Claim legitimate expenses
- Plan ahead for tax bills
- Avoid overpaying tax
Many people who do their own accounting end up paying more tax than necessary, simply because they don’t know what’s available to them.
Accountant vs Bookkeeper: What’s the Difference?
This is a common point of confusion.
- Bookkeeper: records transactions, reconciles accounts
- Accountant: handles compliance, tax, and advice
Many businesses need both — or an accountant who provides bookkeeping as part of a monthly service.
👉 Related: Bookkeeping services
Can Accounting Software Replace an Accountant?
Software like Xero or QuickBooks is extremely useful — but it doesn’t:
- Interpret tax law
- Spot risks
- Advise on structure or planning
Think of software as a tool, not a replacement for professional judgement.
How Much Does an Accountant Cost?
Costs vary depending on:
- Business type
- Transaction volume
- Reporting requirements
For context, we’ve covered this in detail here:
👉 How much does an accountant cost in the UK?
That guide explains:
- Typical monthly fees
- What’s included
- How MTD and bookkeeping affect cost
So… Do You Need an Accountant?
You might not need one immediately — but most UK businesses benefit from professional support once:
- Compliance becomes ongoing
- Time becomes more valuable
- Risk increases
The key is choosing the right level of support, not necessarily the most expensive one.
Final Thought
A good accountant shouldn’t take control away from you — they should give you clarity and confidence.
If you’re unsure whether you need an accountant, a short conversation can usually confirm:
- What you can do yourself
- What’s worth outsourcing
- What level of support makes sense right now