Accountants for Self Employed London

A self-employed accountant takes care of everything related to your tax and HMRC compliance, so you can focus on running your business. Unlike a general accountant, a specialist self-employed accountant understands the specific rules that apply to sole traders, freelancers, and contractors including which expenses you can claim, how Self Assessment works, and how Making Tax Digital for income tax will affect you from April 2026.

Here is what a self-employed accountant typically handles on your behalf:

• Registering you as self-employed or as a sole trader with HMRC
• Preparing and filing your Self Assessment tax return by the 31 January deadline
• Calculating and advising on your Income Tax and Class 2 and Class 4 National Insurance contributions
• Identifying all allowable business expenses to reduce your taxable profit
• Setting up and managing your bookkeeping using cloud accounting software
• Advising on whether you need to register for VAT (currently required above £90,000 turnover)
• Handling Making Tax Digital for Income Tax Self Assessment quarterly submissions from April 2026
• Acting as your authorised agent with HMRC so we deal with any queries on your behalf
• Advising on whether a limited company structure would be more tax-efficient for your situation

GoForma's self-employed accountants provide all of the above from £39 per month on a rolling monthly fees without any annual lock-in and hidden charges.

Sole Trader or Limited Company? Which Is Right for You?

Sole Trader or Limited Company? Which Is Right for You?

One of the first decisions you will make as a self-employed professional is whether to operate as a sole trader or form a limited company. Both structures are legitimate ways to work for yourself in the UK, but they have different tax implications, levels of administration, and personal liability rules. Your accountant can model both scenarios against your income to show which option leaves you better off.

Operating as a Sole Trader

A sole trader is the simplest form of self-employment. You register with HMRC, choose a trading name, and file a Self Assessment tax return each year. There is no separation between you and the business, you keep all the profits after tax, but you are also personally liable for any business debts. Sole trader structure suits most people earning under £30,000–£40,000 per year from self-employment.

• Simple to set up - just register with HMRC online
• File one Self Assessment tax return per year (deadline: 31 January)
• Pay Income Tax at 20%, 40%, or 45% on profits above your Personal Allowance
• Pay Class 2 and Class 4 National Insurance contributions
• Fewer accounting requirements and lower ongoing fees
• Personal liability for business debts

Operating as a Limited Company

A limited company is a separate legal entity. You become a director and shareholder, which means the company is liable for debts. You typically take a small salary and the remainder as dividends, which are taxed at lower rates than employment income. This structure is usually more tax-efficient above approximately £40,000–£50,000 per year in profits.

• Corporation Tax on company profits at 19% (up to £50,000 profit) or 25% (above £250,000)
• Dividends taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate)
• More administrative requirements such as filing annual accounts, confirmation statements, payroll
• Higher accounting fees, but often offset by the tax saving
• Limited personal liability

Not Sure Which to Choose?

GoForma's accountants provide a free, personalised comparison of sole trader vs limited company based on your income level and business plans. Book a free 20-minute consultation now to get side by side comparison of each business structure.

Self-Employed Expenses: What Can You Claim?

As a self-employed person or sole trader, you can deduct allowable business expenses from your income before calculating your tax liability. Claiming every expense you are entitled to is one of the most effective ways to legally reduce your tax bill, yet many self-employed people miss out on valuable deductions when managing their own accounts.

To qualify, expenses must be ‘wholly and exclusively’ for business purposes, as defined by HMRC. Here are the main categories of allowable expenses for sole traders and the self-employed in the UK:

On average, GoForma clients who receive expert guidance identify additional claimable expenses that reduce their tax bill by £800 to £2,500 per year.

Making Tax Digital for Self-Employed: What Changes in 2026?

Making Tax Digital for Income Tax (MTD for ITSA) is a major change to how self-employed individuals and landlords report their income to HMRC. From April 2026, if your annual income from self-employment or property exceeds £50,000, you are required to use compatible software to keep digital records and submit quarterly updates to HMRC replacing the single annual Self Assessment tax return.

Key MTD for Income Tax Dates

What Does MTD Mean for Sole Traders?

Instead of filing one annual SelfAssessment tax return, you will need to submit four quarterly updates each year through MTD-compatible software, followed by a final declaration. Each quarterly update is a summary of your income and expenses for that three-monthperiod.

How GoForma Handles MTD for You

GoForma is fully ready to comply with MTD for income tax. We provide HMRC approved FreeAgent accounting software as part of all our monthly packages at no extra cost. Our accountants will set up your MTD account, ensure your bookkeeping is MTD-compliant, and submit your quarterly updates and End of Period Statement on your behalf.

• FreeAgent (included free) is HMRC-approved MTD software
• We submit all four quarterly updates on your behalf
• We file your End of Period Statement and final declaration
• We notify you of any changes to MTD rules or deadlines
• We advise if you are approaching the income threshold that triggers MTD obligations

Self Assessment Tax Returns for Self-Employed Individuals

If you are self-employed in the UK and earn more than £1,000 in a tax year, you must register for Self Assessment and file an annual tax return with HMRC. The deadline for online returns is 31 January following the end of the tax year (5 April). Missing this deadline results in an automatic £100 penalty, with further charges accumulating if the return is not submitted.

What Is Included in a Self-Employed Self Assessment Return?

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• Employment income (if you also have a PAYE job along side self-employment)
• Self-employed income and allowable business expenses
• Rental income, savings interest, and dividend income
• Capital gains (if applicable)
• Pension contributions and Gift Aid payments that reduce your tax bill
• Student loan repayments (if applicable)

GoForma's accountants prepare and submit your Self Assessment tax return as part of all monthly accounting packages. We collect your income and expense information, calculate your tax liability, identify every allowable deduction, and submit your return to HMRC before the deadline. We also provide proactive reminders so you are never caught off-guard.

If you are not on a monthly package, you can still use our dedicated Self Assessment service for a one-off filing. This is ideal if you only need support at year end or want to double check with accountant for correctness before submitting.

How Much Does a Self-Employed Accountant Cost?

Self-employed accounting fees in the UK range from around £20 per month for basic online filing tools with no human support, to £150+ per month for a traditional high-street practice. GoForma's self-employed accounting packages start at £39 per month and include a dedicated accountant, FreeAgent software, Self Assessment filing, and year-round support.

Stop Overpaying Tax and Start Working With an Accountant for Self-Employed

Most self-employed individuals in the UK are paying more tax than they legally need to.

Not because they are doing anything wrong, but because they are doing it alone. They miss out on expense claims they are entitled to, file returns without an expert review, and spend hours each January rushing to meet deadlines that a good accountant would have planned for months in advance.

At GoForma, we have provided over 4,000 free consultations to self-employed individuals, sole traders, and freelancers since 2020. Over time, we see the same pattern again and again. As soon as a self-employed person works with a dedicated accountant who understands their business, their tax bill goes down, their stress levels drop, and they stop dreading the 31 January deadline.

That is exactly what GoForma is built for. We do not offer a one-size-fits-all online service. We are a team of ACCA and AAT qualified accountants who specialise in self-employment, from sole traders and freelancers to side hustlers and gig workers.

Your dedicated accountant understands your business, keeps track of your income, and knows which expenses apply to your industry. You get expert, personalised accounting support at a price that makes sense from day one.

You do not need perfectly organised accounts to get started. You do not need to have kept everything in order all year. You just need to take the first step, and we will handle the rest.

Whether you are registering as self-employed for the first time, catching up on overdue tax returns, or switching from an unresponsive accountant, GoForma is ready to help today.