Do I Need an Accountant If I Am Self Employed

At Towerstone Accountants we provide specialist personal tax services, for self employed, and individuals across the UK. This article has been written to explain Do I need an accountant if I am self employed, in clear practical terms, so you understand how personal tax and Self Assessment rules apply in real situations. Our aim is to help you stay compliant, avoid costly mistakes, and make confident tax decisions.

This is one of the most common questions I hear from people who are newly self employed and also from those who have been trading for years but are starting to feel unsure. In my experience the question is rarely just about cost. It is usually about confidence. People want to know whether they are doing things properly, whether they are missing something important, and whether HMRC will one day come knocking.

The honest answer is that you do not legally have to use an accountant if you are self employed. HMRC allows you to manage your own tax affairs. However that does not mean it is always the right decision. Being self employed comes with responsibilities that go far beyond filling in a tax return once a year, and this is where the value of an accountant often becomes clear.

In this article I want to explain what being self employed actually involves from a tax and compliance point of view, what you are expected to handle yourself, where most people struggle, and when having an accountant genuinely makes a difference. I will also talk openly about when you might not need one yet, and when I believe professional support is worth every penny.

What being self employed really means in practice

When someone becomes self employed they often focus on the practical side of earning money. Finding clients, doing the work, and getting paid usually come first. Tax and admin tend to sit in the background until a deadline approaches.

From HMRC’s point of view being self employed means you are responsible for:.

• Registering for Self Assessment on time

• Keeping accurate records of income and expenses

• Calculating your taxable profit correctly

• Filing your Self Assessment tax return by the deadline

• Paying income tax and National Insurance on time

• Registering for VAT if required

• Understanding what expenses you can and cannot claim

None of this is optional. HMRC expects you to get it right whether you use an accountant or not.

In theory this is all manageable. In reality this is where many people start to feel uncomfortable, especially once income grows or circumstances become more complex.

Can you do it yourself as a self employed person

Yes, you can manage your own tax affairs if you are self employed, and some people do this successfully for years. HMRC’s online systems are more accessible than they used to be, and basic bookkeeping software has made record keeping easier.

If your situation is very simple, for example:.

• One source of self employed income

• Low turnover

• No VAT registration

• Minimal expenses

• No other income streams

Then it is perfectly possible to file your own tax return and stay compliant.

That said, simple does not always mean risk free. I regularly see people who believed their situation was straightforward but had unknowingly made mistakes for several years. These mistakes often only come to light when HMRC queries something or when income increases and triggers new rules.

Where most self employed people struggle

From experience there are a few recurring pressure points where self employed people tend to struggle without professional support.

The first is expenses. Understanding what you can claim is not always intuitive. Many people either underclaim because they are cautious or overclaim because something feels business related even though HMRC would not agree. Home working costs, vehicle expenses, phone usage, and mixed use items are common problem areas.

The second is timing. Knowing when to register, when to file, and when to pay is critical. Missing deadlines leads to penalties and interest, even if no tax is actually due. HMRC does not take intention into account.

The third is cash flow. Self Assessment tax bills are paid after the income is earned, which can come as a shock in the first or second year. Without planning it is easy to find yourself with a large bill and no money set aside.

The fourth is changes. As your business grows you may need to think about VAT, payments on account, or even whether self employment is still the right structure. These decisions have tax consequences that are hard to reverse later.

What an accountant actually does for the self employed

Many people think an accountant’s role begins and ends with filing a tax return. In reality that is often the smallest part of the value.

For a self employed person an accountant can help with:.

• Registering correctly with HMRC

• Setting up record keeping systems

• Explaining what expenses are allowable

• Preparing accurate accounts

• Filing the Self Assessment tax return

• Calculating income tax and National Insurance

• Advising on payments on account

• Planning for future tax bills

• Dealing with HMRC on your behalf

• Advising when things change

In my opinion the biggest benefit is not just compliance but clarity. Knowing where you stand removes a lot of background stress, especially when income fluctuates.

The cost question and whether it is worth it

Cost is often the deciding factor. Self employed people understandably worry about spending money on professional fees, especially in the early stages.

What I usually say is this. An accountant should not just cost you money. They should save you money, time, or stress, and often all three.

From experience the savings come from:.

• Claiming expenses correctly that people often miss

• Avoiding penalties and interest

• Preventing mistakes that lead to HMRC enquiries

• Helping with tax planning rather than reactive filing

There is also the time factor. Time spent worrying about tax or trying to interpret HMRC guidance is time not spent earning money. For many self employed people that trade off alone makes the decision easier.

When I believe you probably do need an accountant

In my experience professional support becomes increasingly important if:.

• Your income is growing

• You have more than one income source

• You are unsure about expenses

• You are approaching VAT registration

• You receive letters from HMRC that worry you

• You have fallen behind on filings

• You simply do not feel confident

Confidence is an underrated factor. If you constantly feel unsure about whether you are doing things right, that uncertainty can sit in the background and distract you from running your business properly.

When you might not need one yet

Equally I think it is important to be honest and say that not everyone needs an accountant immediately.

If you are newly self employed, earning modest amounts, and comfortable with numbers and admin, you may be fine managing things yourself initially. Some people prefer to learn how the system works before bringing in support later.

What I would say from experience is that it is worth reviewing this decision regularly. What worked in year one often stops working in year three.

The risk of leaving it too late

One of the hardest situations I deal with is when someone comes to me after several years of doing things themselves and realises something has gone wrong. Late registrations, incorrect returns, or missing records can be stressful and expensive to fix.

HMRC penalties often build quietly. By the time someone seeks help the problem feels much bigger than it needed to be.

Getting advice earlier does not mean committing forever. It often just means getting reassurance that you are on the right track.

Key points to takeaway

So do you need an accountant if you are self employed. Legally no. Practically, often yes.

From my experience the right time to use an accountant is not when something has already gone wrong but when you want peace of mind that things are being done properly. Self employment already comes with enough uncertainty without tax worries sitting in the background.

If you are confident, organised, and your situation is genuinely simple, you may be fine on your own for now. If you feel unsure, stretched, or confused, professional support is usually a wise investment rather than an unnecessary cost.

The key is not whether you can do it yourself, but whether doing it yourself is the best use of your time and energy as your business grows.

You may also find our guidance on Do I need an accountant if I only earn part time, and How do I find a good accountant for self employed workers, helpful when reviewing related personal tax questions. For a broader overview of Self Assessment deadlines, reporting, and obligations, you can visit our self assessment guidance hub.