Do I Need an Accountant If I Only Earn Part Time?

Even part-time workers can benefit from an accountant’s help. Learn when you need one, what they can do for you, and how to decide if it is worth the cost.

Introduction

Many people in part-time work assume that hiring an accountant is only necessary for those running large businesses or earning full-time income. However, even part-time earners can benefit from professional accounting support — especially if they are self-employed, have multiple income sources, or want to ensure they are paying the correct amount of tax.

This article explores when a part-time worker might need an accountant, what services they can provide, and how to decide whether it is worth the cost.

Understanding Your Tax Responsibilities

Whether you work part time or full time, your tax obligations depend on how you earn your income. There are two main scenarios:

  1. Part-time employment You are paid through PAYE (Pay As You Earn), and your employer deducts Income Tax and National Insurance automatically. In this case, you usually do not need an accountant because your employer handles the paperwork for you.

  2. Part-time self-employment or freelancing You are responsible for declaring your own income, paying tax, and keeping records. This is where an accountant can be extremely useful.

If you combine both employment and self-employment (for example, working part time for an employer while freelancing on the side), you must report your additional income to HMRC through a Self Assessment tax return.

When You Might Need an Accountant

Even if you only earn part time, there are several situations where hiring an accountant can save you time, money, and stress.

1. You Are Self-Employed or Run a Side Business

If you work for yourself, you are required to:

  • Register with HMRC as self-employed.

  • Keep records of all income and expenses.

  • Complete a Self Assessment tax return each year.

  • Pay Income Tax and National Insurance on your profits.

An accountant can handle these tasks for you, ensuring your figures are correct and that you claim all allowable expenses, such as equipment, travel, or home office costs. This can significantly reduce your tax bill.

2. You Have More Than One Source of Income

If you earn income from multiple jobs, freelance work, or investments, your tax situation can become complicated. An accountant can help you calculate your total taxable income and ensure you are paying the right amount of tax without overpaying.

3. You Are Unsure About Record Keeping

HMRC requires self-employed individuals to keep detailed financial records for at least five years after the submission deadline for the relevant tax year. An accountant can set up a simple bookkeeping system or recommend software to help you stay organised.

4. You Claim Expenses or Work from Home

If you work part time from home or use your own equipment for work, you can often claim a portion of your household bills, internet, or phone costs. An accountant can identify what you can and cannot claim, ensuring your expenses meet HMRC’s “wholly and exclusively” rule.

5. You Want to Save Time and Avoid Errors

Even part-time self-employed individuals must meet HMRC deadlines for registering, submitting tax returns, and paying tax. Missing these deadlines can lead to fines and interest charges. An accountant can handle these deadlines for you, preventing costly mistakes and saving valuable time.

6. You Plan to Grow Your Income or Business

If your part-time work might expand into a full-time business, setting up your finances correctly from the start is crucial. An accountant can help you decide when to register for VAT, whether to operate as a sole trader or limited company, and how to plan for growth efficiently.

When You Might Not Need an Accountant

If you are employed part time and do not earn additional income, your employer will handle tax and National Insurance through PAYE. You will not need an accountant in this case unless:

  • You have investment or rental income that must be declared.

  • You receive foreign income.

  • You want professional advice on saving, pensions, or tax planning.

HMRC also provides online tools to check your tax code and estimate your tax payments, which can be useful for simple situations.

The Benefits of Having an Accountant

Even for part-time earners, an accountant can provide several benefits:

  • Accurate tax returns: Ensuring your figures are correct and compliant.

  • Tax efficiency: Identifying deductions and allowances to reduce your liability.

  • Peace of mind: Avoiding the risk of penalties or overpayment.

  • Professional advice: Helping with future planning and financial decisions.

In many cases, the savings an accountant identifies will outweigh their fee.

Example Scenario

Emma works 20 hours a week as a graphic designer for a marketing agency and earns £15,000 a year. She also earns around £5,000 annually from freelance design projects.

Because her freelance income is self-employed, Emma must complete a Self Assessment tax return. She decides to hire an accountant to:

  • Calculate her total taxable income.

  • Claim allowable business expenses for her freelance work.

  • Submit her tax return accurately and on time.

Her accountant identifies £1,200 of legitimate expenses, saving Emma over £200 in tax — more than covering the accountant’s fee.

How Much Does an Accountant Cost?

For part-time or self-employed workers, the cost of an accountant is usually affordable. Fees vary depending on your needs and the complexity of your income:

  • Basic Self Assessment: £150 £300 per year.

  • Ongoing bookkeeping and tax advice: £25 £50 per month.

  • Comprehensive services for growing businesses: From £500 per year upwards.

Many accountants offer fixed-fee packages for freelancers and part-time workers, which can make budgeting easier.

What to Look for in an Accountant

If you decide to hire an accountant, look for one who:

  • Has experience with self-employed and small business clients.

  • Is registered with a professional body such as ICAEW, ACCA, or AAT.

  • Offers cloud accounting software integration.

  • Provides proactive advice rather than just tax filing.

It is also worth asking whether they have experience working with part-time freelancers or people in your specific industry.

Conclusion

Even if you only earn part time, having an accountant can help you stay compliant, reduce your tax bill, and free up valuable time. While employees on PAYE may not need one, self-employed individuals, freelancers, or those with multiple income sources often benefit greatly from professional advice.

An accountant is not just there to file your tax return — they can guide you in managing your finances, planning for growth, and making the most of every pound you earn.