Key Takeaways
- Making Tax Digital (MTD) changes in 2026 will require quarterly reporting for freelancers earning over £50,000.
- A qualified accountant identifies allowable expenses that can usually save you more money than the cost of their fees.
- DIY accounting can cost you up to 15 working days a year, which is lost billable time for your business.
- Professionals act as your HMRC agent. They handle communications and reduce the risk of stressful investigations or HMRC penalties.
- Your accountant helps you decide the most tax-efficient business structure
Deciding if an accountant is worth the investment usually comes down to two factors: the complexity of your income and the value of your time.
Table of contents
1. Making Tax Digital and the 2026 shift
HMRC is changing how you report your freelance career earnings through Making Tax Digital (MTD). This is a move away from the traditional annual deadline toward a more frequent reporting cycle.
From April 2026, if you are a freelancer in the UK with a gross income over £50,000, you are no longer just filing a single annual tax return. You will be required to keep digital records and send quarterly updates using MTD–compliant accounting software.
The rollout is phased.
- April 2026: Mandatory for those earning over £50,000.
- April 2027: Mandatory for those earning over £30,000.
- April 2028: Planned extension to those earning over £20,000.
A qualified accountant can help you remain compliant with these shifting tax laws, protecting you from the stress of quarterly filing.
2. How an accountant can help you save money
The most common question is if the tax savings outweigh the hiring costs?
A good accountant identifies every allowable expense you might be overlooking. Many freelancers miss out on legitimate claims because they are unsure of the boundaries.
Key areas where an accountant finds hidden value are:
- Home Office proportions: Calculating a fair proportion of rent, utilities, and council tax based on actual usage.
- Professional development: Categorising training costs correctly to ensure they are tax-deductible.
- Tech and equipment: Deciding between capital allowances and direct expenses for hardware.
The tax efficiency gained through expert advice can cover the cost of hiring an accountant entirely.
3. The opportunity cost of DIY accounting
Filing your Self-Assessment tax returns yourself takes time that could be spent on billable work or finding new clients.
Research suggests that the average self–employed person in the UK spends roughly 15 working days a year simply managing their finances and separating personal from business expenses.
When you calculate your internal cost of doing your own admin, the math often favors hiring a professional:
- Calculate your billable rate: If you charge between £30 and £60 per hour, spending 10 hours on your tax returns costs you £300 to £600 in lost billable time.
- The 2026 reporting multiplier: Under MTD rules, the time required for compliance will increase as you move to quarterly reporting.
- Focus on growth: Time spent wrestling with spreadsheets is time not spent on marketing or upskilling.
4. Choosing between a sole trader and limited company structure
As your business grows, your current setup might become a financial burden. An accountant helps you decide exactly when it is tax-efficient to move from being a sole trader to running a limited company.
We have written a dedicated guide on the pros and cons of this transition which you can find in our separate blog post: 👉 When should a freelancer incorporate?
5. Staying on the right side of HMRC
HMRC investigations are stressful for any business owner.
An accountant acts as your agent, dealing with HMRC on your behalf and making sure your business accounts are documented. Professional help reduces the risk of a penalty.
Having an expert accountant handle the filing means you never have to worry about missing a deadline or interpreting a complex new regulation on your own.
Focus on the creative work you enjoy while knowing your financial healthy is monitored by the best accountants for creatives in London.
6. No-obligation call with WallsMan Creative
At WallsMan Creative, we specialise in accountancy for creative businesses in the UK.
We understand that your focus should be on your work, not on tax codes and spreadsheets.
If you are looking for a partner to manage your finances and navigate the upcoming 2026 changes, we can help ensure your business remains compliant and tax–efficient.
