If you are self-employed or running a small business in Erith, you have probably wondered whether you actually need an accountant — or whether you can handle it all yourself. The short answer is that it depends on your situation, but for most sole traders in the area, a local accountant saves more than it costs.
Here is a straightforward guide to help you decide.
What does an accountant in Erith actually do?
A good local accountant does far more than just filling in your tax return once a year. For sole traders and small businesses in Erith, the most common services are:
- Self Assessment tax returns — calculating your tax liability, claiming every allowance you are entitled to and filing before the HMRC deadline
- VAT returns — registering your business for VAT if required, choosing the right VAT scheme and submitting quarterly returns
- Bookkeeping — keeping your records accurate and Making Tax Digital compliant throughout the year
- Business planning — helping you understand your profit margins, manage cash flow and plan ahead for growth or quieter periods
- Company formation — if you are thinking of moving from sole trader to limited company, setting you up correctly from the start
The day-to-day support — answering questions about expenses, explaining HMRC letters, advising on tax-efficient decisions — is often what clients value most.
Do I legally need an accountant?
No. As a sole trader in the UK you are not legally required to use an accountant. You can complete your own Self Assessment tax return and submit it directly to HMRC using their online portal.
However, most sole traders who have tried to do this themselves report one of two problems: either they find it genuinely confusing and time-consuming, or they complete it without claiming all the expenses and allowances they were entitled to — and effectively overpay their tax as a result.
When does it make sense to get an accountant?
For most Erith sole traders, the tipping point is when the cost of getting it wrong — or the time it takes to do it properly — is greater than the accountant's fee. In practice, that means almost anyone who:
- Is earning more than around £20,000 per year from self-employment
- Has multiple income sources to declare
- Has business expenses that could be claimed but are not sure what qualifies
- Trades through a limited company
- Is registered for VAT or approaching the VAT threshold (currently £90,000 per year)
- Simply does not want to spend time on administration
How much does an accountant cost in Erith?
Costs vary depending on the accountant and your business size. At BDH Accounting Services in Erith, sole traders pay a fixed monthly fee of £99 per month (or £49.50 for the first three months as a new client). That covers your Self Assessment tax return, bookkeeping support, VAT returns where applicable and unlimited same-day support from your dedicated accountant.
Some accountants charge by the hour or per service. Fixed monthly fees are generally more cost-effective for sole traders because they cover everything with no surprises.
What should I look for in an Erith accountant?
Look for a practice that is ACCA or ACA accredited — this means they are qualified to a recognised professional standard. Check that they are responsive (same-day or next-day responses are a reasonable expectation), that fees are clear up front and that they are genuinely local enough to understand the types of businesses operating in Erith and the surrounding area.
At BDH we are based in Slade Gardens, Erith, and we work specifically with sole traders, contractors and small limited companies across DA8, DA17 and the wider Bexley and Dartford areas.
Ready to find out if we are the right fit?
Book a free, no-obligation consultation with BDH. We will talk through your situation and tell you honestly what you need — and what it would cost. If we are not the right fit, we will say so.
Find out more about our sole trader accounting service or see our full range of services.