Should you hire an accountant in the UK or handle it yourself?

When starting a business in the UK, one key question is whether hiring an accountant in the UK is the right move, or if managing your finances alone makes more sense.

While doing everything yourself might look like a budget-friendly choice, it’s not always the most efficient.

In this article, we’ll explore the main factors to help you decide what’s best for your business.

Hiring an accountant in UK vs managing your own finances

What it means to handle your finances independently

Whether you’re self-employed or run a registered company, certain tax and financial obligations apply in the UK.

You’ll need to keep accurate records, submit tax filings, deal with VAT if required, and meet the requirements of Making Tax Digital, using approved software.

Even though these tasks can be completed online, doing them right takes time, basic financial literacy, and attention to official deadlines.

Benefits of working with an accountant in UK

Bringing in a finance expert may seem like an added expense, but it often pays off in the long run.

✔ Time-saving

Delegating technical work allows you to focus on growing your venture.

✔ Lower risk of penalties

A qualified expert knows the legal framework and helps avoid costly mistakes.

✔ Better tax outcomes

They can guide you on allowable expenses, reduce your tax bill, and help you access government incentives.

✔ Strategic guidance

You’ll get advice on business structure, VAT registration, or income planning based on your current situation.

✔ Representation during audits

If HMRC raises questions, your financial adviser can support you through the process.

What hiring an accountant in UK typically costs

Costs vary based on your business model and complexity:

Freelancers or sole traders: around £20–£60 monthly
Small limited companies: typically £60–£150 monthly
Businesses with payroll or VAT: usually £150 or more

Many offer bundled services, including software access, regular reports, and consulting.

When it makes sense to go solo

Handling your own numbers might be the right choice if:

Your business is just getting started with modest income
You have few transactions each month
You feel confident using digital tools
You’re looking to cut costs in the early stages

Modern platforms like Xero, FreeAgent, or QuickBooks make invoicing and filing manageable, even for beginners.

Risks of managing everything yourself

Although self-managing can seem efficient, there are downsides to be aware of.

Errors due to inexperience
Missed opportunities for deductions
Fines from late or incorrect submissions
Lost time that could be spent on core business tasks

Even small mistakes can result in financial setbacks that outweigh the savings.

A balanced option: use tools and occasional expert help

Some entrepreneurs opt for a hybrid model:

They handle daily bookkeeping through accounting software
They bring in a specialist for annual reports or complex filings

This method reduces cost while still giving you access to professional advice when needed.

Conclusion

So, is it better to work with a financial expert or take care of everything yourself? That depends on your setup, available time, and comfort level.

If you’re running a simple operation and are eager to learn, managing your books might work for now. But if peace of mind, accuracy, and long-term planning are important, hiring an expert could be one of the smartest investments you make.

Whichever path you choose, keeping your finances in order and staying compliant is essential to running a stable, successful business.