Most start-ups put off hiring an accountant for one of two reasons. Either they think their business is too small to need one, or they assume it’ll cost more than they can justify. Both assumptions are usually wrong, but knowing when an accountant genuinely earns their keep, and when you can manage on your own, is worth getting right.
Here’s a straight-talking checklist for Salisbury and Wiltshire start-ups: when DIY accounting is fine, when an accountant pays for themselves several times over, and what to look for when you do decide to hire one.
The Honest Truth: When You Probably Don’t Need One Yet
Let’s start with the cases where you can hold off.
If your total gross income (total earnings before expenses) is less than HMRC’s £1,000 trading allowance, you don’t even need to register as a sole trader for Self Assessment, never mind hire an accountant. Just keep a simple record of what you earn and what you spend, and revisit if the business starts to grow.
If you’re a sole trader earning a bit more than that, say turning over £5,000-£15,000 from a side hustle, you can usually file your own Self Assessment. HMRC’s online portal walks you through it, your situation is straightforward, and the £300-£500 you might spend on an accountant could be better invested in the business itself.
The key signal that you can do your own Self Assessment is simplicity: for example one income source, no employees, no VAT, no big purchases, no complicated tax reliefs. Tick all those boxes, and you’re probably fine on your own.
But as soon as the situation gets more complex – and it usually does, faster than people expect – the maths starts to change.
The Checklist: 9 Signs It’s Time
If you can tick any three of the following, an accountant will almost certainly save you more than they cost.
1. Your turnover is approaching £90,000
That’s the VAT registration threshold (correct at the time of writing, though always check the latest figure with HMRC). Once you cross it, VAT becomes mandatory, which means quarterly returns, charging VAT to customers, and getting the scheme choice right (Flat Rate, Standard, and Cash Accounting all have different implications). It’s not a great idea to learn on the job.
2. You’re earning over £50,000 as a self-employed sole trader
From April 2026, Making Tax Digital for Income Tax (MTD) applies to self-employed people earning over £50,000. That means quarterly digital reporting on top of your annual return. Doable on your own, but the time cost is real, and an accountant who’s set up for MTD will save you the hassle. Looking ahead, from April 2027, the threshold drops to £30,000.
3. You’re thinking about going ‘Limited’
The decision to move from being a sole trader to a limited company has tax implications that aren’t obvious if you haven’t done it before. There are scenarios where it saves you thousands, and scenarios where it costs you more than it saves. We’ve covered this in detail in our Sole Trader or Limited Company? blog, but the short answer is: this is a decision that warrants seeking professional advice.
4. You’re hiring your first employee
Payroll isn’t just “pay them and tell HMRC.” It’s PAYE registration, real-time information submissions, employer National Insurance, pension auto-enrolment, statutory pay calculations, P60s, and P11Ds for benefits. Getting any of it wrong creates problems that are slow and expensive to unravel.
5. You’ve bought (or are about to buy) significant equipment, a vehicle, or premises
Capital allowances, Annual Investment Allowance, balancing charges, treatment of finance versus outright purchase: these are areas where an accountant can save you a serious amount of tax in the right year. The wrong call on a £30,000 van can cost you thousands of pounds (far more than the cost of an accountant!).
6. You’ve got multiple income streams
For example, you might have employed plus self-employed income, sole trader income plus dividends from a limited company, or rental income on top of business income: the more income streams, the more interactions, and the greater likelihood of miscalculating your tax to your detriment. A good accountant looks at the whole picture, not just one piece.
7. You’re losing weekends or evenings to bookkeeping
This one’s about personal values, not tax. If you’re spending 4-8 hours a month wrestling with spreadsheets, reconciling bank statements, or panicking about receipts, and that time could be earning you money or buying you a life, then consider outsourcing the hassle. Bookkeeping is often cheaper than people think, and the time clawed back is real.
8. You’ve had a letter or call from HMRC that you didn’t fully understand
Don’t go it alone. HMRC correspondence often looks scarier than it is, but the reverse can also be true: something that looks routine can have implications you don’t spot. Get someone who reads these letters every week to read yours.
9. You can’t tell whether your business is actually making money
If you’ve been trading for over a year and you can’t say with confidence what your profit margin is, what your most profitable service is, or whether last quarter was better than the one before, you don’t have an accounting problem, you have a visibility problem. That’s exactly what good accountants fix.
What to Look for When You Hire
If you’ve decided it’s time, here are a few things to look for in an accountant:
- Qualifications. Surprisingly, anyone in the UK can legally call themselves an accountant. To hire a regulated professional, look for the letters ACCA (Chartered Certified Accountant), ACA (Chartered Accountant), or AAT for a bookkeeper. These are real qualifications with requirements for continuing professional development.
- Small business experience. A firm whose bread and butter is FTSE 250 audits is unlikely to be the right fit for a sole trader in Salisbury. Look for accountants who genuinely work with businesses your size.
- Proactivity. The best accountants don’t just file your return at the end of the year, they tell you things in advance. “If you do X by 31 March, you’ll save £Y.” If the only contact you have with your accountant is when they need information from you, you’re not getting full value.
- Local presence (if it matters to you). Plenty of accountancy can be done remotely, but for some business owners, sitting across a table from your accountant a couple of times a year makes a real difference.
- Plain English. If the first conversation is full of jargon and the quote is opaque, walk away. A good accountant explains things clearly.
If you’ve already got an accountant but you’re not happy with them, switching is much simpler than people imagine. We’ve covered the process in How to Switch Accountants.
The Caboodle Approach
We work with start-ups and small businesses across Salisbury and local counties as their long-term accountancy partner. That means not just doing the tax returns, but knowing your business well enough to tell you in advance when something matters, whether that’s an opportunity to save tax, a deadline you need to hit, or a decision worth thinking through carefully.
Caboodle’s enthusiastic team combines proactive accountancy with personal coaching for business owners which is unusual. We believe that the numbers, and the person running the business, are connected, and both need to be in good shape!
If you’re a Salisbury or local start-up wondering whether it’s time to bring in an accountant, have a look at the services we offer, see how we work with our clients, and when you’re ready, get in touch for a no-pressure conversation.